• Investing
  • Stock
Round Table Thoughts
  • Economy
  • Editor’s Pick
Home Editor's Pick Federal student loans this fall will have the highest interest rate in more than a decade
Editor's Pick

Federal student loans this fall will have the highest interest rate in more than a decade

by May 15, 2024
by May 15, 2024 0 comment
Share
0
FacebookTwitterPinterestWhatsapp

The interest rate on many new federal student loans is set to rise to its highest level in more than a decade next year as lenders throughout the economy seek higher returns for borrowing money.

On Tuesday, the U.S. Department of Education said in a notice on its website that the rate for undergrads would rise to 6.53% from 5.5%. That’s equivalent to $113.72 for every $10,000 borrowed, according to Mark Kantrowitz, an expert on student loans, versus $108.52 for this past year.

For graduate students, the rate is rising from 7.05% to 8.08%, or to $121.77 per $10,000 from $116.36.

The rate levels are set by a pre-determined formula that takes the current yield on 10-year Treasury notes and adds percentage points based on the loan type and loan recipient.

The interest rate on the most recent auction of 10-year notes hit 4.483%. The 10-year is considered a benchmark rate and reflects investor appetite for risk given current circumstances in the economy.

Right now, the biggest factor in the economy remains inflation, and lenders are looking for higher rates to offset its effects.

It is not clear whether the Biden administration could intervene to freeze or even reduce rates from current levels. In 2013, the Obama administration signed a bipartisan bill to retroactively lower rates. Biden has made reducing the burden of student loans a cornerstone of his agenda and has rolled out a new debt cancellation plan after the Supreme Court rejected an earlier one.

A spokesperson for the Biden administration did not immediately respond to a request for comment.

The new rates do not affect outstanding student loans or private student loans, which tend to have much higher interest rates.

This post appeared first on NBC NEWS
You Might Also Like
  • Biden to launch task force to crack down on ‘unfair and illegal pricing’ amid rising inflation
  • Mortgage rates jump back over 7% as stronger economic data rolls in
  • Rising car crash deaths could force companies to rethink stunt driving in commercials
  • IHOP rolls out biscuits menu nationwide for the first time as chain fights slowing sales
Share
0
FacebookTwitterPinterestWhatsapp

previous post
House Republican demands Garland appoint special counsel to investigate Biden over stalled Israel aid
next post
Silver lining for consumers: Food price growth has gone flat and other prices are falling

You may also like

Kellogg CEO faces backlash for suggesting people eat ‘cereal for...

February 29, 2024

Boeing, NASA say Starliner astronaut launch will move forward despite...

May 26, 2024

Smart Cities Cellular Connectivity to Generate Over 143 Petabytes of...

March 6, 2023

Microsoft confirms performance-based job cuts across departments

January 10, 2025

Extreme heat makes flying harder. Airlines and airports say they...

July 29, 2024

Buy Buy Baby stores set to shutter as Go Global’s...

July 16, 2023

Biden administration sues to block Kroger-Albertsons supermarket merger

February 27, 2024

Elon Musk is $70 billion richer since Trump victory due...

November 13, 2024

Why are frozen vegetable prices so high? Blame war, immigration...

July 22, 2023

Sweetgreen managers in New York used the N-word daily, racial...

September 16, 2023

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Breakouts, Momentum & Moving Averages: 10 Must-See Stock Charts Right Now

      May 31, 2025
    • Leadership Rotation Could Confirm Corrective Phase

      May 30, 2025
    • Run Your Stock Portfolio Like a Pro Sports Team

      May 30, 2025
    • U.S. foreign tax bill sends jitters across Wall Street

      May 30, 2025
    • Amazon taps Xbox co-founder to lead new team developing ‘breakthrough’ consumer products

      May 30, 2025

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be...

      June 27, 2024 2,765 views
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as...

      August 9, 2024 2,472 views
    • 3

      Biden appointee played key role in recruiting Chinese...

      June 25, 2024 2,451 views
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful...

      July 10, 2024 2,432 views
    • 5

      Harris VP pick spent years promoting research facility...

      August 29, 2024 2,308 views

    Categories

    • Economy (7,009)
    • Editor's Pick (2,106)
    • Investing (538)
    • Stock (2,581)

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be revived under new House GOP bill

      June 27, 2024
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as Harris camp blasts ‘lying’ critics

      August 9, 2024
    • 3

      Biden appointee played key role in recruiting Chinese businesses to Delaware: ‘Longtime friends’

      June 25, 2024
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful of Chinese spy threats

      July 10, 2024
    • 5

      Harris VP pick spent years promoting research facility that collaborated with ‘Chinese military company’

      August 29, 2024

    Latest News

    • Breakouts, Momentum & Moving Averages: 10 Must-See Stock Charts Right...

      May 31, 2025
    • Leadership Rotation Could Confirm Corrective Phase

      May 30, 2025
    • Run Your Stock Portfolio Like a Pro Sports Team

      May 30, 2025

    Categories

    • Economy (7,009)
    • Editor's Pick (2,106)
    • Investing (538)
    • Stock (2,581)

    Disclaimer: RoundTableThoughts.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 RoundTableThoughts.com. All Rights Reserved.

    Round Table Thoughts
    • Investing
    • Stock
    Round Table Thoughts
    • Economy
    • Editor’s Pick

    Read alsox

    Roomba-maker iRobot announces it’s laying off...

    January 30, 2024

    Family offices are giving top staff...

    July 30, 2024

    Sierra Space CEO leaves as $5...

    January 7, 2025
    Sign In

    Keep me signed in until I sign out

    Forgot your password?

    Password Recovery

    A new password will be emailed to you.

    Have received a new password? Login here