In addition to looking to major state budget cuts in funding, students and families can expect lower interest rates on loans going forward. 10-Year Treasury bill auction has set the new rates for federal education loans that will be disbursed between July 1, 2020 and June 30, 2021. They are as follows:
Direct Undergraduate Loans (Subsidized and Unsubsidized)
Current rate – 4.53% → Estimated new rate – 2.75%
Direct Graduate Student Loans (Unsubsidized)
Current rate – 6.08% → Estimated new rate – 4.3%
Parent PLUS Loans and Grad PLUS Loans
Current rate – 7.08% → Estimated new rate – 5.3%
