Federal student loan interest rate will rise to highest level in 12 years

[1srelluc]

Borrowing to pay for college is about to get more expensive: The interest rate on new federal student loans for undergraduates during the upcoming 2024-25 academic year will be the highest in 12 years.

The federal student loan interest rate will be 6.53% for undergraduate students, up from 5.5% for the current year. The interest rate has not been that high on any undergraduate loans since the 2012-13 school year.

Graduate students will see an 8.08% interest rate this coming academic year, up from 7.05%. And PLUS loans, which are available to both parents and graduate students, will come with a 9.08% interest rate, an increase from 8.05%.

The rates for graduate students and parents have not been as high since before July 2006, when the government started setting fixed rates for student loans. Prior to that, most federal student loans had variable rates.

The higher student loan interest rates will make it more costly for borrowers to pay back their debt – and could cause a problem for President Joe Biden who is working to win over as many young voters as he can before the November election.

Sure, Biden did not set the rates but they are a result of Biden's inflation and the fed rates (and attendant higher bond yields) set to combat it.

Given the costs involved for a college education these days it's almost like getting a loan for a Tesla PU every couple years.

For the academic year 2023-2024, the average tuition of public U.S. colleges is $11,823 for state residents and $21,802 for out-of-state students. For private colleges, the average tuition & fees are $28,417 regardless of residency.

Thanks Biden.

 

[the watcher]

 

[AMart]

Another Dem scam to hang over the heads of students.....vote for us we might give you some free stuff.

 

[1srelluc]

Another Dem scam to hang over the heads of students.....vote for us we might give you some free stuff.

I never thought that the political climate would be one of the determining factors of taking out a student loan.

I wonder how many loans will be taken out with the thought that it might be forgiven by some future dem administration.

 

[jackflash]

Borrowing to pay for college is about to get more expensive: The interest rate on new federal student loans for undergraduates during the upcoming 2024-25 academic year will be the highest in 12 years.

The federal student loan interest rate will be 6.53% for undergraduate students, up from 5.5% for the current year. The interest rate has not been that high on any undergraduate loans since the 2012-13 school year.

Graduate students will see an 8.08% interest rate this coming academic year, up from 7.05%. And PLUS loans, which are available to both parents and graduate students, will come with a 9.08% interest rate, an increase from 8.05%.

The rates for graduate students and parents have not been as high since before July 2006, when the government started setting fixed rates for student loans. Prior to that, most federal student loans had variable rates.

The higher student loan interest rates will make it more costly for borrowers to pay back their debt – and could cause a problem for President Joe Biden who is working to win over as many young voters as he can before the November election.

Sure, Biden did not set the rates but they are a result of Biden's inflation and the fed rates (and attendant higher bond yields) set to combat it.

Given the costs involved for a college education these days it's almost like getting a loan for a Tesla PU every couple years.

For the academic year 2023-2024, the average tuition of public U.S. colleges is $11,823 for state residents and $21,802 for out-of-state students. For private colleges, the average tuition & fees are $28,417 regardless of residency.

Thanks Biden.

The traditional college education has turned into a debt trap. Trade schools are the only way to go now a days.

 

[Polishprince]

Interest rates are going up all over. Not just for student loans, but for mortgages, car notes and credit cards as well.

The reason is Sleepy Joe's policy of High Inflation and lower standards of living for the Middle Class, as he continues to seek to punish those who didn't vote for him in 2020.

If you want things to change, there is an election in 4 months.

 

[1srelluc]

Interest rates are going up all over. Not just for student loans, but for mortgages, car notes and credit cards as well.

The reason is Sleepy Joe's policy of High Inflation and lower standards of living for the Middle Class, as he continues to seek to punish those who didn't vote for him in 2020.

If you want things to change, there is an election in 4 months.

Have you bought insurance lately?

It's gone up so much since April that when I canceled the policy that I took out on my mom's house last week (house sold) I got back only $100 less than I paid for it due to policy increases since the time I took it out.

When you pay for a policy up-front it earns interest. I took it out for a year just to be on the safe side.

In other words I got around three months of insurance for $100.00.

 

[tyroneweaver]

Have you bought insurance lately?

It's gone up so much since April that when I canceled the policy that I took out on my mom's house last week (house sold) I got back only $100 less than I paid for it due to policy increases since the time I took it out.

When you pay for a policy up-front it earns interest. I took it out for a year just to be on the safe side.

In other words I got around three months of insurance for $100.00.

is it true they don't get a tax refund if they owe on a student loan?

 

[Polishprince]

is it true they don't get a tax refund if they owe on a student loan?

If they are in default on a student loan, they take their tax refund.

But not if they are current on payments.

 

[tyroneweaver]

If they are in default on a student loan, they take their tax refund.

But not if they are current on payments.So

So the way it is now, they owe the money plus get taxpayer grift in addition

 

[Woodznutz]

I never thought that the political climate would be one of the determining factors of taking out a student loan.

I wonder how many loans will be taken out with the thought that it might be forgiven by some future dem administration.

The kids were assured that those loans would be easily paid from the high-paying jobs that they would get immediately upon graduating. They swallowed it 'hook, line, and sinker'.

 

[Polishprince]

The kids were assured that those loan would be easily paid from the high-paying jobs that they would get immediately upon graduating. They swallowed it 'hook, line, and sinker'.

Those kids who studied electrical engineering or proctology didn't have a problem paying it back. OTOH, those who studied French poetry or LGBTQ+ studies found otherwise. Barista jobs at Starbucks, or towel boy jobs at the Gay Bath houses just aren't that lucrative.

 

[the watcher]

I wonder how many loans will be taken out with the thought that it might be forgiven by some future dem administration.

All of them, plus the colleges raising tuition and boarding knowing the government will be eventually paying for it.

 

[Woodznutz]

Kids that borrow their way through college don't know how to work after they graduate. Employers are frustrated by this. If they had to work menial jobs to pay for college, they would value their education more.

 

[Polishprince]

Kids that borrow their way through college don't know how to work after they graduate. Employers are frustrated by this. If they had to work menial jobs to pay for college, they would value their education more.

My nephew worked as a paid intern in the field he was studying, industrial engineering, when he was in college. Not really a "menial" job, but it was a paid position and he did well after he graduated. In fact the job helped him land a regular ft job after he was degreed.

 

[Woodznutz]

My nephew worked as a paid intern in the field he was studying, industrial engineering, when he was in college. Not really a "menial" job, but it was a paid position and he did well after he graduated. In fact the job helped him land a regular ft job after he was degreed.

I worked in a supermarket in high school. Of all the people that worked there part time I was about the only one not saving for college or paying their way through college *. Several guys were married with kids and still working there to pay for college. Some of the kids were from well-off families as well, whose parents insisted that they contribute to their own education. Others were the first in their family to plan or go to college.

*I remained in the food industry after high school, obtained an apprenticeship as a meat cutter, a good paying job that I loved and worked at for many years.