Question of the Day: What's the new interest rate on federal student loans for 2020-21 school year?
- How does this interest rate for undergraduates (at 4 year colleges) compare to historical averages?
- How does the interest rates on graduate loans (GradPLUS) and parent loans (PLUS) compare to undergraduate loans?
- Reading the footnotes on the graph, what determines the interest rate on federal student loans and how often is this rate adjusted?
Behind the numbers (Marketplace):
“It is a big drop, and I think it’s a reflection of the cuts to interest rates due to the pandemic,” said Mark Kantrowitz, who publishes the online resource Saving for College.
The U.S. Department of Education has yet to officially announce the new rates, but they are calculated based on the high yield of the last 10-year Treasury Note auction in May, which took place Tuesday.
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