 Federal student loan interest rates have dropped significantly for 2020-21. Students will pay 2.75% compared to 5.05% in 2019-20. Parent loan interest has dropped to 5.3% from 7.6% in 2019-20. Graduate student borrowers will be charged 4.3% compared to 6.6% in 2019-20.Both dependent and independent students are eligible to borrow. Students can be full or part time and must carry a half-time load, which is six credits. The federal student loan program helps individuals and families fill in the gap between what college costs and any other grants or scholarships the student may have been offered. It makes it possible for students to attend 2 or 4-year colleges. The lower the cost of tuition of the college, the more likely the student can cover the cost with a federal student loan. Loan payments for federal student loans begin six months after graduation or whenever the student drops below half time enrollment during a school year. Parent borrowers may elect not to go into repayment until the student has graduated. Borrowers may start repaying their loans while the student is still in college without penalty and early payment reduces the amount to be repaid. |
