Federal loan interest rates to drop July 1

[jym626]

Interest rates on federal student loans are set to drop by more than one-third of a percentage point following the U.S. Treasury’s sale on Wednesday of 10-year notes. Rates are reset each year based on the yield of the note set by that auction.
The interest rate on new loans for undergraduate students will drop to 4.29 percent from the current 4.66 percent. The cost of new direct loans for graduate students will fall to 5.84 percent from 6.21 percent.
Rates on PLUS loans for graduate students or parents paying their children’s college costs will also tick down to 6.84 percent from 7.21 percent.

https://www.insidehighered.com/quicktakes/2015/05/13/interest-rates-federal-student-loans-will-drop

[emeraldkity4]

Yay!

[arabrab]

That is rather surprising.

[kelsmom]

But: These rates should not be considered official until the Department of Education makes an announcement in the coming days or weeks on IFAP (the official site for financial aid professionals).

[kelsmom]

I just want to confirm that the financial aid community has received notification of the interest rates from ED. For loans first disbursed July 1, 2015 - June 30, 2016 the interest rates are 4.29% Undergrad Subsidized (1.073% origination fee), 4.29% Undergrad Unsubsidized (1.073% origination fee), 5.84% Grad Unsubsidized (1.073% origination fee), 6.84% Parent PLUS and Graduate PLUS (4.292% origination fee).