Federal College Loan Interest Rate Is Rising - KALB-TV News Channel 5 & CBS 2

Federal College Loan Interest Rate Is Rising

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(NBC) There's a different way to calculate the interest some students will pay on their federal student loans. 

Starting today and continuing for the next year, all of the student loans offered by the federal government will see their interest rate increase by point-8-percent.
The change stems from a bipartisan deal brokered last year by congress and signed by President Obama that ties the rates to the financial markets. Until last year, student loan interest rates were set by law and did not adjust with economic conditions.

The increase will make little difference. For every $10,000 in student loans taken out, the average borrower can expect to pay $4 dollars extra a month to pay it back.  

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