Of the $1.3 trillion in outstanding federal student loan debt, the vast majority of it (somewhere around $900 billion, maybe more) is federal. One of the biggest hurdles facing federal student loan borrowers right now is high interest rates.
Federal student loan interest rates are set by Congress. While leaders from both parties touted the success of a bipartisan interest rate reduction bill passed by Congress and signed by the President a couple of years ago, this was merely a temporary fix. And the price of that fix is steadily increasing federal student loan interest rates across the board – especially for graduate students, who could see interest rates approach 10% in the coming years.
How big of a difference can a student loan’s interest rate make? Pretty big, to be honest. Read More