Home Business Federal student loan interest rate increases from July 1

Federal student loan interest rate increases from July 1

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RICHMOND, VA (WWBT) – Federal student loan rate will rise to 3.73% in the 2021/22 academic year. This is after an all-time low of 2.75% over the past year.

Now, although interest rates on student loans are increasing, rates are low compared to the past decade. And the rate change won’t affect you if you’ve already blocked the loan.

In addition, under the first COVID-19 relief bill, federal student loan interest rates are 0% and may be deferred until October 2021.

Even so – if you’re taking out student loans this year, our partners at the financial website Nerdwallet say you should still seek and exhaust federal loans before contacting private lenders.

Unlike private student loans, federal student loans do not require joint subscribers and all borrowers receive the same interest rate.

and one more tip! Experts say do not apply for loans until you have completed the Free Federal Student Aid Application – FAFSA – and until you have received a response from your college about scholarships, grants, and other unnecessary assistance. extinguished.

Copyright 2021 WWBT. All rights reserved.

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