One way to beat the rising student loan interest for new borrowers is to plan to repay their student loan earlier than the ten year standard term. Paying $100 per month extra when a student goes into repayment saves about $4,000 which is the approximate amount the new interest rate will cost.
There is some misinformation in the media about the impact of the new rate. One recent national talk show guest inaccurately said that there is an early repayment penalty on students loans. There are also people trying to say that doubling student loan interest is nothing to worry about. They try to lull students into a sense of it being no big deal. "It's only twenty or so extra dollars a month when you go into repayment they say". Over 10 years, that amount will add up to much more.
Student loans should be discussed by families in terms of how they will be managed so that the student pays back as little interest as possible.