Education loan interest levels is back in the news headlines once again. President Obama handled into interest levels in the Condition away from the brand new Commitment target inside . This time men and women appears to be onboard and make a beneficial alter. Though, during the newest financial season () student college students were investing 3.4% into the unsubsidized finance together with federal government are purchasing step three.4% with the paid fund (once the beginner is during college), the headlines news are ignoring that scholar youngsters has actually started expenses 6.8% for the unsubsidized funds all along. These were perhaps not given the same break new undergraduate college student inhabitants gotten 5 years back.

Is student loan interest levels excessive? In advance of 1988, the Government Stafford Financing rate of interest try nine% as well as for a brief period anywhere between 1988 and you may 1992, the fresh prices was basically a crossbreed 8% 10%, in which the basic several years away from repayment the interest rate try 8% then it popped so you’re able to ten% toward leftover 6 numerous years of an elementary loan cost months. 1st, within the 1992 the Government Stafford Financing interest rate are set for each and every July step 1 by using the 91-go out Treasury statement including step three.1%. Continua a leggere