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The U.S. Department of Education’s newly announced federal student loan interest rates for the 2024-25 academic year broke longstanding records. ... loans, which now have a 7.05 percent rate ...
The Federal Reserve’s actions can influence student loan interest rates. ... Now, they have a fixed interest of 5.50 percent. How the Fed’s decisions affect private student loans.
Federal student loans. Private student loans. Interest rates. 5.50% to 8.05% for loans disbursed before July 1, 2024. 6.53% to 9.08% fixed for loans disbursed after July 1, 2024. 4.19% to 16.69% fixed
The federal student loan program was criticized for not adjusting interest rates according to factors under students' control, such as the choice of academic major. Critics have contended that flat-rate pricing contributes to inefficiency and misallocation of resources in higher education and lower productivity in the labor market. [ 15 ]
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Congressional Democrats introduced legislation on July 27 that would lower student loan interest to 0%, while capping rates for future borrowers. If passed, this would be a huge help to 44 million...
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