Sport Investors League
  • Politics
  • Stocks
  • Investing
  • Business

Sport Investors League

  • Politics
  • Stocks
  • Investing
  • Business
Business

Federal student loans this fall will have the highest interest rate in more than a decade

by admin May 15, 2024
May 15, 2024
Federal student loans this fall will have the highest interest rate in more than a decade

The interest rate on many new federal student loans is set to rise to its highest level in more than a decade next year as lenders throughout the economy seek higher returns for borrowing money.

On Tuesday, the U.S. Department of Education said in a notice on its website that the rate for undergrads would rise to 6.53% from 5.5%. That’s equivalent to $113.72 for every $10,000 borrowed, according to Mark Kantrowitz, an expert on student loans, versus $108.52 for this past year.

For graduate students, the rate is rising from 7.05% to 8.08%, or to $121.77 per $10,000 from $116.36.

The rate levels are set by a pre-determined formula that takes the current yield on 10-year Treasury notes and adds percentage points based on the loan type and loan recipient.

The interest rate on the most recent auction of 10-year notes hit 4.483%. The 10-year is considered a benchmark rate and reflects investor appetite for risk given current circumstances in the economy.

Right now, the biggest factor in the economy remains inflation, and lenders are looking for higher rates to offset its effects.

It is not clear whether the Biden administration could intervene to freeze or even reduce rates from current levels. In 2013, the Obama administration signed a bipartisan bill to retroactively lower rates. Biden has made reducing the burden of student loans a cornerstone of his agenda and has rolled out a new debt cancellation plan after the Supreme Court rejected an earlier one.

A spokesperson for the Biden administration did not immediately respond to a request for comment.

The new rates do not affect outstanding student loans or private student loans, which tend to have much higher interest rates.

This post appeared first on NBC NEWS

0
FacebookTwitterGoogle +Pinterest
previous post
$SPY FLAGS NEW “GO” TREND IN THE FACE OF DEFENSIVE STRENGTH
next post
Amazon Web Services CEO Adam Selipsky to step down

Related Posts

Elon Musk’s AI startup now valued at $24...

May 28, 2024

S&P 500, Nasdaq close at all-time highs ahead...

July 11, 2024

Southwest to get rid of open seating, offer...

July 27, 2024

Nvidia CEO says he was wrong about timeline...

March 22, 2025

Sam Altman tells OpenAI staff there’s no plan...

October 1, 2024

Fox One streaming service to launch ahead of...

August 7, 2025

Mattel says Barbies and Hot Wheels could soon...

February 6, 2025

Tim Cook to join Trump at White House...

August 7, 2025

Trump demands resignation of Intel CEO over alleged...

August 8, 2025

Playboy moving its headquarters to Miami Beach and...

August 17, 2025

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent

    • FLASHBACK: Mamdani labeled Kirk a ‘far-right extremist’ who should be canceled from speaking in NYC

      September 18, 2025
    • Rand Paul clashes with top Democrat over CDC pushing vaccines on infants

      September 18, 2025
    • Obama calls Charlie Kirk’s death ‘horrific,’ blames Trump for fueling division

      September 18, 2025
    • Newsom says he kept in touch with Charlie Kirk since podcast, called him ‘gracious’

      September 18, 2025
    • Turning Point USA expands its merchandise collection with items commemorating Charlie Kirk

      September 18, 2025

    Categories

    • Business (1,107)
    • Investing (3,062)
    • Politics (3,737)
    • Stocks (1,155)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: sportinvestorsleague.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 sportinvestorsleague.com | All Rights Reserved