Try federal student loan rates way too high?

Student loan rates are into the news headlines once more. President Obama touched on the interest rates in the Condition from the fresh Connection target for the . This time around men seems to be aboard making a beneficial transform. Regardless of if, in the most recent fiscal 12 months () undergraduate students was basically spending step three.4% towards unsubsidized loans together with authorities is using step three.4% into the paid fund (since the scholar is within college), the news mass media was disregarding the fact that scholar people features come spending six.8% into the unsubsidized financing every with each other. These were not considering the same break new student college student population acquired five years back.

Are student loan interest levels excessive? Before 1988, the Federal Stafford Loan interest was nine% and a brief period ranging from 1988 and you can 1992, brand new pricing was in fact a crossbreed 8% 10%, where the earliest number of years off cost the speed is actually 8% following it sprang so you can 10% into kept six several years of a basic loan fees several months.