Getting a Student Loan? Your Interest Rate Just Went Up

Starting today, parents and college students will be paying more for federal education loans. Interest rates on new federal loans are adjusted every July, and this year’s rates are slightly higher than those for loans issued in the previous 12 months. The rate on Stafford loans for undergraduates is now 4.66 percent, up from 3.89 percent. Parents and graduate students now will pay a rate of 7.21 percent for PLUS loans, compared with 6.41 percent previously. These rates are fixed …

Defaults Rise in Parent PLUS Loans

Parents who’ve taken out federal student loans to help pay for their children’s college education are increasingly finding themselves in serious financial trouble. Default rates on Parent PLUS loans have tripled in the last few years, according to federal data released this month. Some 5.1 percent of loans that originated in the 2010 fiscal year were in default three years later, according to U.S. Department of Education data released last week. Default rates were highest, at 13.3 percent, for Parent …