Student loan rates of interest is actually into the headlines again. Chairman Obama handled for the interest levels inside the County from the fresh new Relationship address during the . This time around group appears to be aboard and then make an excellent transform. Although, from inside the newest fiscal year () student children was in fact investing step 3.4% to the unsubsidized funds and the government is actually paying step 3.4% to the sponsored loans (while the pupil is actually school), the news mass media try ignoring the fact that scholar college students has actually been paying 6.8% to the unsubsidized financing every along. They were maybe not considering the exact same crack the fresh new student student people acquired 5 years in the past.

Is actually student loan rates of interest excessive? Prior to 1988, the new Government Stafford Financing rate of interest try nine% and also for a brief period ranging from 1988 and you can 1992, new cost was indeed a hybrid 8% 10%, where the first few years out of payment the speed try 8% and it popped in order to ten% into the leftover 6 years of an elementary mortgage payment months. Continue reading Was government student loan interest rates too much? →