Question of the Day: What's the new interest rate on federal student loans for the 2022-23 school year?
It was 3.73 for the 2021-22 school year...what's your best guess for this school year?
Answer: 4.99% vs. 3.73%
Questions:
- Do you think that higher interest rates on student loans will impact the number of students who take out student loans for the upcoming school year?
- How do you think this interest rate compares to the interest charged on credit card debt?
- Average student debt is around $30,000 for college graduates. At current interest rates, roughly how much in interest would be paid over the life of a 10-year student loan? Here's a loan calculator to help with the math.
Behind the numbers (Bankrate):
Federal student loan interest rates are set to rise for the 2022-23 academic year, following the U.S. Treasury Department’s 10-year note auction on Wednesday afternoon. The new rates will be 4.99 percent for undergraduate loans, 6.54 percent for graduate Direct Unsubsidized Loans and 7.54 percent for PLUS loans. These rates will go into effect on July 1, 2022.
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About the Author
Tim Ranzetta
Tim's saving habits started at seven when a neighbor with a broken hip gave him a dog walking job. Her recovery, which took almost a year, resulted in Tim getting to know the bank tellers quite well (and accumulating a savings account balance of over $300!). His recent entrepreneurial adventures have included driving a shredding truck, analyzing executive compensation packages for Fortune 500 companies and helping families make better college financing decisions. After volunteering in 2010 to create and teach a personal finance program at Eastside College Prep in East Palo Alto, Tim saw firsthand the impact of an engaging and activity-based curriculum, which inspired him to start a new non-profit, Next Gen Personal Finance.
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