Student loan interest rates try into the headlines again. President Obama touched to the interest levels in the Condition out of this new Partnership target for the . This time folk is apparently agreeable and make a beneficial change. Although, for the current fiscal season () undergraduate people was purchasing 3.4% on unsubsidized finance plus the national is actually paying step three.4% into the backed money (once the pupil is during college), the headlines news are disregarding the point that graduate people provides already been paying 6.8% on the unsubsidized financing all the collectively. They were not considering the same break the student scholar inhabitants received five years ago.
Is education loan rates of interest too high? Prior to 1988, brand new Government Stafford Loan rate of interest is nine% and also for a brief period anywhere between 1988 and you may 1992, the pricing was basically a hybrid 8% 10%, where in fact the very first four years out of installment the interest rate was 8% then it sprang so you’re able to ten% into left 6 many years of a simple financing payment months. 1st, in 1992 the Federal Stafford Loan rate of interest is set for every July step 1 utilizing the 91-go out Treasury statement and additionally step three.1%. Into the 1995, you to formula are revised on the 91-time Treasury costs including dos.5%. Later inside 1998, Congress approved the newest formula becoming brand new 91-big date Treasury expenses and additionally step one.7%. Continue reading “Is actually government student loan interest rates too high?”