How to Prepare for Dramatically Higher Federal Student Loan Interest Rates
"When federal student loan interest rates increase again in July 2024, undergraduate students taking out direct loans for the 2024-2025 academic year will see some of the highest rates in over a decade," U.S. News and World Report writes.
..."While rate hikes are not unusual, experts say this round of increases is significant, with each rate going up more than a full percentage point.
'This means borrowers may be paying more over the life of their loan, especially if their loans are unsubsidized, meaning they’ll accrue interest while the borrower is in school,' says Dana Kelly, vice president of professional development and institutional compliance for the National Association of Student Financial Aid Administrators. 'This leads to loan capitalization and will have student borrowers paying interest on interest.'"
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Publication Date: 6/18/2024
