Student Loans to Go Up in July?
According to financial reports and speculation, student loan rates are going to get jacked up starting July 1st, because the rates are adjusted every year, dependent on what the 3-month Treasury yield is at the end of May.
What one financial advisor I read about was suggesting was to refinance, or consolidate, your variable rate federal student loan before June 30th, to save on the impending increase in the interest rate.
The expected increase in the student loan interest rate is expected to jum about 2%, which can be a considerable increase in the amount of cash paid out for some larger student loans. It is also the highest jump in the history of the federal student loan program if it does go down that way.
Students who start paying off their student loans right after college graduation, or withint the six month grace period typically allowed, after graduation, they will be paying a lower percentage for that period of time, so it may be in the person’s best interest to try to pay as much in that time span as possible, to avoid paying more at a higher rate later.
