Rates On Guaranteed Student Loans Are Falling

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The Department of Education said that rates on guaranteed student loans will fall because of lower market rates. The rates on popular Stafford loans is expected to fall from 4.06% to 3.42%, the lowest since the program began in 1965; while the rates on the Parent Loan for Undergraduate Students- PLUS-program is expected to drop from 4.86% to 4.22%. And the rate on loan consolidations is also expected to drop from 4.13% to 3.5%. All the rates are expected to apply to loans taken out after July 1, 1998.

The final rates will be determined in May based on short-term Treasuries issued at that time.

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