New federal rates for the 2021-2022 school year
Direct Subsidized Loans: 3.73% Direct Unsubsidized Loans (for undergraduate students): 3.73% Direct Unsubsidized Loans (for graduate and professional students): 5.28% Direct PLUS Loans: 6.28%
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Consequently, how do I find the original interest rate on my student loans?
Your lender must tell you about your rates. If you already have a loan, log in to your student loan account on your lender’s website or call your loan servicer to find out your interest rate information.
Simply so, how many years are your term to pay back student loans?
Accordingly, is 7% interest high for student loans?
Average interest rates on federal student loans (which about 92% of borrowers have) range from 2.75% to 5.30%. Average interest rates on private student loans are generally higher but can range from 3.34% to 12.99% fixed and 1.04% to 11.98% variable.
Is 9 interest rate high for student loans?
As a rule of thumb, if your rates are in the double digits – that’s too high. Anything at or above 10% is a high interest rate for student loans. Generally speaking, an interest rate lower than 7% is a much healthier place to be for student loans.
Sallie Mae is one of the largest private student loan lenders in the industry. If you’re a borrower who has struggled to qualify for loans elsewhere, Sallie Mae may be an option for you. The lender offers undergraduate, graduate, career training, MBA, medical school, and dental school loans.
Currently, the industry average for these loans is 9% to 12%, but in many cases, lower rates may be found. It’s also vital to check if the private loan has a fixed or variable APR. A fixed interest rate will not change over the lifetime of the loan while a variable rate will change over time with the market.
According to the Federal Reserve, the median payment for student loan borrowers is $222 per month.
Parent and student loan comparison chart
||Smart Option Student Loan® for Undergraduate Students
||Sallie Mae Parent Loan
||1.13% APR to 11.23% APR2
||3.37% APR to 12.99% APR3
||3.50% APR to 12.60% APR2
||5.49% APR to 13.87%3
Federal student loan interest rates 2020-2021
2.75% for undergraduates. 4.30% for graduate students. 5.30% for parents and graduate students taking out PLUS loans.
More than 90% of private student loans to undergraduate students and 75% of private student loans to graduate students require a creditworthy cosigner.
||Fixed vs. Variable
|10/1/1981 to 10/30/1982
|1/1/1981 to 9/30/1981
The fixed interest rate on federal student loans jumped to 3.73% for undergraduate loans issued from July 1 through June 30, 2022 — up from 2.75% for the 2020-21 academic year. The fixed rate for Direct PLUS loans, which can be taken out by parents and graduate or professional students — rose to 6.28% from 5.3%.
A variable interest rate may go up or down due to an increase or decrease to the loan’s index. Variable interest rates usually start out lower than fixed rates, but can change, so your monthly student loan payments may vary over time. … This means you’ll have predictable monthly student loan payments.
The new interest rates are effective July 1, 2021 through June 30, 2022, and interest rates will be 0.98% (percentage points) higher. Unlike last year when student loan rates dropped, student loans will become more expensive for any student loan borrowers who borrow federal student loans for the upcoming school year.