The rates for loans taken out for any given school year will now be based on the yield of the 10-year Treasury note the prior summer.
The upshot: This year the APR on federal student loans will be 4% -- slightly higher than the previous rate for subsidized borrowers (who don't run up interest charges while in school), but a big savings on unsubsidized loans, which had been set at 6.9%.
Rates on new parent PLUS loans will be 7.4%, after fees, down from 8.8%. Loan costs for future borrowers, though, could rise again with the market.
|$5,500 unsubsidized federal student loan||$2,129||$1,182|
|$10,000 parent PLUS loan||$5,072||$4,182|
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|Overnight Avg Rate||Latest||Change||Last Week|
|30 yr fixed||4.36%||4.24%|
|15 yr fixed||3.39%||3.26%|
|30 yr refi||4.34%||4.22%|
|15 yr refi||3.38%||3.24%|
Today's featured rates: