Larry Mengerink, CFP®, AIF®’s Post

Three key takeaways from this article: 1. In July, the Department of Education enacted the highest interest rates on federal student loans since 2008. 2. The previously announced interest rate only applies to student loans taken out in the 2024-2025 academic year. 3. Rates are based on yields on 10-year Treasurys, which have been pushed up during the Federal Reserve's fight against inflation.

Three key takeaways from this article: 1. In July, the Department of Education enacted the highest interest rates on federal student loans since 2008. 2. The previously announced interest rate only applies to student loans taken out in the 2024-2025 academic year. 3. Rates are based on yields on 10-year Treasurys, which have been pushed up during the Federal Reserve's fight against inflation.

Interest rates on federal student loans are climbing for the 2024-2025 academic year, the Education Department’s Federal Student Aid office announced on Tuesday. The new rates are the highest in more than a decade. Rates for federal direct undergraduate loans will be 6.53%, up from 5.5% for the current academic year, and the highest in 16 years, according to student loan expert Mark Kantrowitz. The higher rates could frustrate the Biden administration’s efforts to make higher education more affordable. President Joe Biden, who has campaigned on student debt relief, has canceled more than $146 billion through a variety of programs, though the Supreme Court blocked his broadest $400 billion student loan relief plan last year. The new rate for direct unsubsidized loans for graduate and professional students is 8.08% for the next academic year, up from 7.05% now, and the new rate for Direct PLUS Loans for parents of dependent undergraduate students and for graduate and professional students is 9.08%, up from 8.05% now. ... #StudentLoans #InterestRates #StudentDebt

Federal student loan interest rates are increasing by over 1%, marking the fourth consecutive year of rises. Find out the impact of these changes on undergraduate and graduate loans. #LilyHo #StudentLoans #InterestRates #college #FinancialAid #loans #financialplanning

Many parents and students don't know what they're signing up for concerning student loans. Here are some (not so?) fun facts: ● The federal student loan interest rate for undergraduates is 6.53%. ● Unsubsidized loan interest starts right after you take the loan out (at age 18) and is based on the parent’s income (their EFC). ● Subsidized loan interest (eligible for those with more financial need) starts 6 months after graduation. #collegeplanning #studentloans #classof #collegeprep #college #highered

Americans owe about $1.6 trillion in student loans as of June 2024 – 42% more than what they owed a decade earlier. Here are five facts about student loans in America.

Here you go. Student Loan Interest Rates For 2024 - 2025 The new interest rates for 2024-25 federal student loans disbursed on or after July 1, 2024 will be: 6.533% for undergraduate Federal Direct Stafford Loans 8.083% for graduate Federal Direct Stafford Loans 9.083% for Federal Direct Grad PLUS Loans 9.083% for Federal Direct Parent PLUS Loans That’s an increase of 1.035% compared with last year and 3.783% compared with the record low reached in 2020-21 during the pandemic.

The U.S. Department of Education sets annual interest rates on federal student loans once a year. The percentage is based on the 10-year Treasury note, which has been on the rise while the Federal Reserve keeps interest rates high until inflation comes down. As a result, federal student loan rates may rise by about 1% in the 2024-2025 academic year, according to an estimation by higher education expert Mark Kantrowitz.

💼 The Standard Student Loan Repayment Plan: What You Need to Know 💼 The Standard Repayment Plan is the best default option for most federal student loans, offering predictable and manageable payments. Here’s a quick overview: 🔸Fixed Monthly Payments: Payments are consistent over a 10-year period. 🔸Predictable Costs: Monthly payment amounts do not change, providing stability. 🔸Lower Total Interest: Shorter repayment means paying less interest over time. 🔸Eligibility: Applicable to all borrowers with federal student loans. 👍Pro Tip: This plan can save you money in the long run if you can afford the higher monthly payments. For those needing lower payments, consider exploring alternative plans like extending and income-driven repayment options. #StudentLoans #RepaymentPlans #FinancialPlanning #StudentDebt #HigherEducation

💼 The Standard Student Loan Repayment Plan: What You Need to Know 💼 The Standard Repayment Plan is the best default option for most federal student loans, offering predictable and manageable payments. Here’s a quick overview: 🔸Fixed Monthly Payments: Payments are consistent over a 10-year period. 🔸Predictable Costs: Monthly payment amounts do not change, providing stability. 🔸Lower Total Interest: Shorter repayment means paying less interest over time. 🔸Eligibility: Applicable to all borrowers with federal student loans. 👍Pro Tip: This plan can save you money in the long run if you can afford the higher monthly payments. For those needing lower payments, consider exploring alternative plans like extending and income-driven repayment options. #StudentLoans #RepaymentPlans #FinancialPlanning #StudentDebt #HigherEducation