Right Major + Right College = Career Success - Helping you get where you were meant to be.
RSS Follow Become a Fan

Delivered by FeedBurner

Recent Posts

Biggest Problem for Accepted Students
Will My College Be Open?
College in the Era of Covid
Student Loan Interest Rates Drop for 2020-21
Not All Info on the Web about FAFSA is Accurate

Most Popular Posts

Essay Topic: What will you contribute to our campus?
Got an IEP? Don't forget to take it to college.
Discouraging Words
Will Social Media Affect Your Child's Chances?
What to do when things change


Accepted? Now What?
Admission Decisions
Admission Essays
Adult Students
Athletes and College
Campus Safety
Career Planning and College
Choosing the best college for you
College Admission Deadlines
College Admission Decisions
College Admission Essays
College Admission Tests
College application process
College Applications
College Buyer Beware
College Camp
College Choice
College Costs
College Counseling and Advising
College Entrance Exams
College Freshman Adjustment
College Graduation and Beyond
College Major
College Myths
College Prep
College Prep Opportunities
College Recruitment
College Scholarships
College succcess
College Transfer
Early preparation for college
Education Consumerism
FInancial Aid
Financial Aid and Scholarships
GAP Year
GAP Year and Summer Programs
Getting in....or not
Good advice
Grad School
Graduate to a Job
Highly Selective Colleges
It's all in the timing
Kids Today
Learning Disability Accommodations
Media Treatment of College Information
Money and College
Online College
Parent and Grandparent Support
Parent and Grandparent Support in the College Process
Parent and student relationships in the college process
Parenting Teens
Picking a college
Planning for College Success
Positioning Students for Success
Social Media and College
Start Planning Early
Student Development
Student Loan Debt
Student Loans
Student Posts About Their Experiences
Success Hints
Summer Activities
Summer college prep
Surviving fall semester fo the senior year
The College-Job Connection
The Junior Year
To-do lists
Value of College
powered by

College Talk Blog

Student Loan Interest Rates Drop

New student loan interest rates for the William D. Ford Direct Student Loan become effective each year on July 1. The new rates that became effective for loans disbursed on or after July 1 of 2016 are approximately one half percent lower than last year's rates.

The new rates are fixed for the life of the loan and closer to rates offered for private student loans offered by some lending institutions. In recent years, parents had begun to borrow from banks and credit unions to take advantage of rates that had been lower than government student loans.

Subsidized Loans:      3.76% -a drop from the prior year rate of 4.29%
Un-subsidized Loans: 3.76%- a drop from the prior year rate of 4.29%
Grad Plus Loans:        5.31%- a drop from the prior year rate of 5.87%
Parent Plus Loans:      6.31%- a drop from the prior year rate of 6.84%

The interest rate drop this year, takes student loan interest rates closer to 2013 rate levels. The William T. Ford Direct Student Loan replaced the Federal Family Education Loan Program in 2010 when the US Government became the lender for federal student loans. At that time, the role of private banks in the federal loan arena changed from lending to loan servicing. Since that time, private lenders have improved private loan alternatives and offer a variety of attractive loan options for parents and graduate students.

0 Comments to Student Loan Interest Rates Drop:

Comments RSS

Add a Comment

Your Name:
Email Address: (Required)
Make your text bigger, bold, italic and more with HTML tags. We'll show you how.
Post Comment