Breaking News: 2016/2017 Federal Student Loan Rates Announced
The federal government has just furnished the Class of 2016 with a valuable graduation present—the gift of low interest rates.
Per
2013 legislation, federal student loan interest rates are set for each upcoming school year based upon the 10-year U.S. Treasury Note yield as of June 1
st. The final Treasury Note auction prior to June 1
st was held on Wednesday, so we now know rates for loans soon-to-be borrowed for the 2016/17 academic year. Happily for student loan borrowers and their families, the
news is good!
- The rate for Subsidized and Unsubsidized Direct Loans for undergraduate students will be 3.76%.
- The rate for Unsubsidized Direct Loans for graduate students will be 5.31%
- And the rate for Direct PLUS Loans for graduate and parent borrowers will be 6.31%.
These rates represent over a half a percentage point drop from rates for the 2015/16 academic year, and signify a 10-year low for most of the loans since rates were fixed on federal student loans in 2006.
The above rates will go into effect on July 1
st, and will apply to all college loans borrowed during the 2016/17 school year, by both freshman and continuing student borrowers (and their parents). While rates are reset each July 1
st for new loans, these (comparatively) low rates are locked in for the life of any federal student loans borrowed for this upcoming academic year.
In a time of rising tuition and
student debt levels, we at
The Insider are happy to be able to report on some good news for student loan borrowers and their families. Happy graduation!
