Education Department Hikes Student LoanRates
WASHINGTON - (06/02/05) -- The Department of Educationannounced this week that rates on federally guaranteed studentloans will jump by a record amount on July 1. Because of anincrease in Treasury bill rates--which the loan rates are peggedto--the in-school rate for the federal Stafford loan will rise fromthe current 2.77% to 4.7%, and the rate for Stafford loans inrepayment will rise from 3.37% to 5.3%. The rates on PLUS loans forparents will rise to 6.1%. Students can still consolidate theirloans at rates as low as 3.37% until July 1.