What is the Interest Rate for a Student Loan?
wondering what the interest rate is for a student loan? We’ve got you covered. In this blog post, we’ll break down everything you need to know about student loan interest rates.
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The Federal Interest Rate for Student Loans
The interest rate for federal student loans is set by Congress. The current interest rate for Direct Subsidized Loans and Direct Unsubsidized Loans is 4.53%.For new Direct PLUS Loans first disbursed on or after July 1, 2019, and before July 1, 2020, the interest rate is 7.08%.
The Federal Interest Rate for Undergraduate Student Loans
The Federal Interest Rate for Undergraduate Student Loans is the rate set by the US government for student loans that are not in deferment or forbearance. The interest rate changes every year on July 1st and is determined by the US Treasury Department. For loans first disbursed on or after July 1st, 2019, the interest rate is 4.53%.
The Federal Interest Rate for Graduate Student Loans
Federal interest rates for graduate student loans are set by Congress and are different from the rates for undergraduate loans. For example, the current interest rate for Stafford Loans (a type of federal loan available to both undergraduate and graduate students) is 4.53% for loans taken out between July 1, 2019 and June 30, 2020. However, the interest rate for graduate Stafford Loans is 6.08% for the same time period.
The Federal Interest Rate for Parent PLUS Loans
The interest rate for Parent PLUS Loans first disbursed between July 1, 2018 and June 30, 2019 is 7.60%.
PLUS loans are federal loans that graduate or professional students and parents of dependent undergraduate students can use to help pay for college or career school. The interest rate on PLUS loans is a fixed rate that’s higher than the fixed rates on Direct Subsidized Loans and Direct Unsubsidized Loans. You’re responsible for paying the interest that accrues on your loan(s) while you’re in school and during your grace period or deferment periods, as well as during any repayment Plan option you choose.
The Private Interest Rate for Student Loans
The interest rate for private student loans can range from around 3% to 12%. The actual interest rate you’ll pay depends on multiple factors, such as your credit score, the length of your loan, and the type of loan you choose. In general, private student loan interest rates are higher than federal student loan interest rates.
The Private Interest Rate for Undergraduate Student Loans
The most common type of student loan is the federal loan, which is awarded based on financial need. Private loans are not based on need, and are instead generally given to students with good credit scores. Interest rates for private loans are set by the lender, and can be fixed or variable. The current average interest rate for private undergraduate student loans is 5.66%, but rates can range from 3.76% to 9.66%.
The Private Interest Rate for Graduate Student Loans
The private interest rate for graduate student loans is set by the lender, and can vary depending on the type of loan, the length of the repayment period, and the borrower’s credit history. Private lenders may also offer special rates for certain types of borrowers, such as those who have a co-signer or who make automatic payments.
The Private Interest Rate for Parent PLUS Loans
Parent PLUS loans have a higher private interest rate than other types of student loans. The private interest rate is the rate that a lender charges a borrower for the use of its funds. The private interest rate for Parent PLUS loans is currently 7.08%. This means that for every $100 that you borrow, you will have to pay the lender $7.08 in interest.
