Student Loan Rate Set To Jump By As Much As 2%
Millions of college students are expected to refinance their outstanding student loans over the next month as rates are expected to rise by as much as 2% on July 1.
That's when rates on Stafford loans are expected to climb by about 2% to 4.7% and rates on PLUS loans, currently at 6.1%, are expected to jump to as much as 8.1%. Rates on Stafford loans already in repayment are also set to rise by 2% to around 5.3%.
Several lenders, including student loan giant Sallie Mae, are offering special deals on consolidation loans.
Sallie Mae, for example, is offering borrowers with at least $10,000 outstanding a discount of 1% on a consolidation loan if they make their first 36 payments on time. NelNet Inc., another student lender, is also offering a 1% discount rate on consolidations.
Ed Roberts can be reached at robertscuj