Rates Go from Variable to Fixed on Stafford Loans
July 17th, 2006All new Stafford Loans taken out after July 1, 2006 will have a FIXED rate of 6.8%. The interest rates used to be variable, changing every year on July first. Experts remind us that the average student loan rate has been in the high 6 and low 7 percentile, and this current rate hike reflects the average over time.
Many have become used to the historically low rates that have been prevalent in the past couple of years. The interest is capped at 8.5%, and the closer the Stafford rates are to that figure, more private loans will become more attractive. However, private loans usually require a cosigner.
Students looking for additional funds should look into PLUS and Perkins Loans for more federal funding options.
My vote goes to Jess Kim of MIT.
By Omorx on October 9th, 2007