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People also ask
Are student loan interest rates going up or down?
Federal student loan interest rates are currently at very low levels. Private student loan rates haven鈥檛 seen a dramatic drop but aren鈥檛 expected to rise.
What is the interest rate on federal student loans?
The interest rates on federal student loans disbursed between July 1, 2020, and June 30, 2021, are as follows: Undergraduate Direct Subsidized and Direct Unsubsidized Loans: 2.75 percent. Graduate Direct Unsubsidized Loans: 4.3 percent.
Are student loan interest rates going up in 2021-22?
New federal student loan interest rates for the 2021-22 school year have been announced, and they鈥檙e higher than the historically low rates borrowers enjoyed in 2020-21. Starting July 1, 2021, federal student interest rates will go up nearly a full percentage point for Direct Subsidized, Direct Unsubsidized and Direct PLUS Loans.
Why are student loans so expensive?
Why are student loans more expensive? Each May, Congress sets federal student loan interest rates for the upcoming school year based on an auction of 10-Year Treasury notes. The new interest rates are effective July 1, 2021 through June 30, 2022, and interest rates will be 0.98% (percentage points) higher.