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California Association of Private Postsecondary Schools

Interest Rates on New Federal Student Loans Will Rise for 2014-15

05/08/2014

The Chronicle of Higher Education. May 7, 2014.

Interest rates on new federal student loans will rise for the 2014-15 academic year, with the rate on undergraduate Stafford loans increasing to 4.66 percent, Bloomberg reported.

Congress voted last year to tie interest rates to the high yield on the 10-year Treasury note. This year’s auction took place on Wednesday, with the yield on the note set at 2.61 percent.

The interest rate on Stafford loans for undergraduates will rise to 4.66 percent, up from 3.86 percent. For graduate students, the rate on unsubsidized Stafford loans will rise to 6.21 percent, up from 5.41 percent. The rate on PLUS Loans for parents and graduate students will increase to 7.21 percent, up from 6.41 percent.