It will cost students and parents less to borrow money from the government to pay for college in the fall as interest rates on federal loans are set to drop.
Interest rates on federal student loans will be reduced by more than one-third of a percentage point as the result of the Treasury Department’s auction of 10-year notes on Wednesday. The government resets rates on student loans every year based on the spring rate of the note, plus a fixed margin. New rates take effect July 1.
Read more at The Washington Post: http://www.washingtonpost.com/news/get-there/wp/2015/05/13/its-about-to-get-cheaper-to-borrow-for-college/