College Loan Advice 2016/2017 Federal Student Loan Rates Announced Written by Shannon Vasconceloson May 13th, 2016 I came to College Coach with close to 10 years of experience in college financial aid offices. I began my career at Boston University, where I counseled students and their parents on the financial aid process and reviewed undergraduate financial aid applications. At Tufts University, where I served as assistant director of financial aid, I developed expertise in the field of health professions financial aid. I was responsible for financial aid application review, grant awarding and loan processing, and college financing and debt management counseling for both pre- and post-doctoral dental students. I have also served as an active member of the Massachusetts Association of Student Financial Aid Administrator’s Early Awareness and Outreach Committee, coordinating early college awareness activities for middle school students; as a trainer for the Department of Education’s National Training for Counselors and Mentors, educating high school guidance counselors on the financial aid process; and as a volunteer for FAFSA Day Massachusetts, aiding students and parents with the completion of online financial aid applications. Learn More About Shannon college loans, paying for college, Breaking News: 2016/2017 Federal Student Loan Interest Rates Have Been Set The federal government has just furnished the Class of 2016 with a valuable graduation present—the gift of low interest rates. Per 2013 legislation, federal student loan interest rates are set for each upcoming school year based upon the 10-year U.S. Treasury Note yield as of June 1st. The final Treasury Note auction prior to June 1st was held on Wednesday, so we now know rates for loans soon-to-be borrowed for the 2016/17 academic year. Happily for student loan borrowers and their families, the news is good! The rate for Subsidized and Unsubsidized Direct Loans for undergraduate students will be 3.76%. The rate for Unsubsidized Direct Loans for graduate students will be 5.31% And the rate for Direct PLUS Loans for graduate and parent borrowers will be 6.31%. These rates represent over a half a percentage point drop from rates for the 2015/16 academic year, and signify a 10-year low for most of the loans since rates were fixed on federal student loans in 2006. The above rates will go into effect on July 1st, and will apply to all college loans borrowed during the 2016/17 school year, by both freshman and continuing student borrowers (and their parents). While rates are reset each July 1st for new loans, these (comparatively) low rates are locked in for the life of any federal student loans borrowed for this upcoming academic year. In a time of rising tuition and student debt levels, we at The Insider are happy to be able to report on some good news for student loan borrowers and their families. Happy graduation! Related Resources Read | Posted on April 11th, 2024 How Much College Debt is Too Much? Read | Posted on March 28th, 2024 What is a Federal Parent PLUS Loan? Read | Posted on February 6th, 2024 Is the SAVE Student Loan Repayment Plan Right for Me?
