With rates increasing on 7/1, is it recommended or even possible to take a loan for the '23-24 academic year before the rate goes up?
Also, do private student loan rates generally increase when the federal ones do? Will likely need some private loan in addition and trying to figure out whether to try and get that before the 7/1 federal rate increase
You cannot get a loan for 2023-24 until after July 1. That’s the start of the federal aid award year. Schools can’t disburse loans until 10 days (or fewer) before the start of the semester.
Federal loan interest rates are set by a Congressionally mandated formula, based on T-bill rates. Private loans don’t follow this formula. However, as interest rates rise, the cost of borrowing rises across the board. You typically can’t get a payment of a private education loan until closer to when school begins, so you probably don’t have the option to borrow until closer to when school starts.
This is so helpful - thanks!