Magazine article Black Issues in Higher Education

Lowest-Ever Loan Rates to Make College More Affordable

Magazine article Black Issues in Higher Education

Lowest-Ever Loan Rates to Make College More Affordable

Article excerpt

WASHINGTON

U.S. Education Secretary Roderick Paige promised financial relief to millions of students and borrowers struggling to pay college tuition bills when he announced last month that federal student loan interest rates will drop to the historic low of 3.42 percent effective July 1.

"Record low loan interest rates may make the difference for many students considering whether to pursue postsecondary education," Paige says. "These new loan rates will mean significant savings for borrowers and will help make higher education more affordable for all students, goals that President Bush is seeking through his 2004 budget request now before Congress."

Borrowers with $10,000 in student loan debt and a 10-year standard repayment plan can save approximately $362 in interest over the life of the loan. The new rate for borrowers repaying Stafford loans issued beginning July 1998 is 3.42 percent, down from 4.06 percent. The rate is 2.82 percent for students who are in school, within the six-month grace period, or in deferment. …

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