Each summer, college students and parents wait for the latest number on the interest rates for new federal student loans. This year, there’s a little bit of good news.
For the first time in three years, the Department of Education announced new federal student loans for undergraduates, graduate students and parents who borrow on behalf of their children will have lower fixed interest rates than last year.
Effective July 1, interest rates for loans taken out during the 2019-20 academic year drop 0.52 percentage points to 4.53% for undergraduates.