It is now official. Interest rates on student loans are set to rise on July 1st.

There’s been an increase across the board, including federal student loan rates and PLUS (parent) loan rates.

Students who are in school, in the grace period or in deferment will see a rise in federal Stafford loan rate from 2.77% to 4.7%. A rate of 5.3% will go into effect for borrowers repaying Stafford loans issued since July 1998.

Even Federal PLUS loans for parents will increase, with the new rate set at 6.1%.

Consolidating student loans before rates go up on July 1st, may be the best option for many students and parents. Borrowers could save thousands by consolidating now.



Categories: General