Clark Howard: Student rates
JACKSONVILLE, Fla. -- There's been so much noise about federal student loans lately that I want to let you know what deal ultimately came out of Washington.
Your new federal student loan rate is 3.9 percent. The loan rate for graduate students is 5.4 percent, and parent borrowing for a kid is 6.4 percent.
The way this is going to play is every school year there will be a reset based on overall interest rates on the interest rate that you have to pay for taking out an undergraduate, graduate, or parent loan. Whatever rate you take out for that year stays fixed for the course of that loan.
But the big fix I want you to avoid is taking out overall way too much in student loans overall. The percentage of people who graduate from school who are in default on student loans right now is scary. Be careful how much you borrow for an entire degree.
For more information go to ClarkHoward.com.
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