Education loan rates of interest are back in the news headlines once more. President Obama handled towards interest rates within his Condition of the brand new Connection target for the . This time men and women is apparently on-board to make an excellent changes. Although, for the most recent financial season () student students have been investing step 3.4% for the unsubsidized money additionally the national is spending step three.4% on paid fund (because beginner is within school), the news headlines mass media are overlooking the fact that graduate people have been expenses 6.8% on unsubsidized financing all together. These were not given the same break the new undergraduate student society obtained five years in the past.
Was student loan interest rates too much? As you lookup usually in the education loan rates of interest, there was a time regarding the 80’s whenever Government Stafford Mortgage interest rates was much higher than he or she is today. Before 1988, the brand new Federal Stafford Financing interest try nine% as well as a short span ranging from 1988 and you may 1992, this new rates had been a hybrid 8% – 10%, where the basic number of years of installment the speed is 8% and then they popped so you’re able to ten% towards left 6 several years of an elementary financing payment months. Continue reading “Is actually federal student loan rates excessive?”