Student Loan Interest Rates Increase Tuesday

By: Associated Press
By: Associated Press

Interest rates go up Tuesday for students taking out new federal loans.

This hike is relatively minimal but could foreshadow more increases to come.

The change stems from a high-profile, bipartisan deal brokered last year by Congress and signed by President Barack Obama that ties the rates to the financial markets.

Interest rates go from 3.86 to 4.66 percent on undergraduate Stafford loans. Graduate student loans go from 5.41 percent to 6.21 percent. Interest rates on Plus loans for parents go from 6.41 percent to 7.21 percent.

The average borrower under the hike will pay back about $4 more every month for every $10,000 owed. That's about the price of fancy latte.

(Copyright 2014 The Associated Press. All rights reserved.)


Comments are posted from viewers like you and do not always reflect the views of this station.
powered by Disqus
WITN

275 E. Arlington Blvd. Greenville, NC 27858 252-439-7777
Gray Television, Inc. - Copyright © 2002-2014 - Designed by Gray Digital Media - Powered by Clickability 265346591 - witn.com/a?a=265346591