2017 - 2018 Interest Rates on Student Loans

[distressstudent]

Effective July 1st, interest rates on all federal loans will go up 0.7% across the board.

Unsubsidized at 6%
Grad plus at 7%

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[DOC YANKEM]

Not surprised at all.

 

[wengerout]

Effective July 1st, interest rates on all federal loans will go up 0.7% across the board.

Unsubsidized at 6%
Grad plus at 7%

Where did you find this out?

EDIT: Nvm, found the source. Here is the link if anyone is curious: U.S. Treasury to Raise Student Loan Interest Rates | Inside Higher Ed

 

[amariesa]

Damn, it's 2.5% at TD Bank of Canada right now for Canadian dental students and graduates. For 280k in loans, their interest was calculated at 500$/month.

 

[allantois]

Betsy DeVos would love it to go even higher, no doubt about that.

 

[lmkappo4]

This is really get more attention.

I know that a lot of pre-dents are stressed about their GPA, application, extracurriculars (and rightfully so) but the numbers for tuition are only getting higher, along with the interest rates. The breaking point for which dentistry is a financially smart decision is already past for most private schools - unfortunately, neither the schools nor the government don't seem to care.

 

[oralcare123]

Damn, it's 2.5% at TD Bank of Canada right now for Canadian dental students and graduates. For 280k in loans, their interest was calculated at 500$/month.

Are you sure they are giving that much for everyone? I know for sure, that for bank loans you would have to pay interest every month even when you are at school

 

[amariesa]

Are you sure they are giving that much for everyone? I know for sure, that for bank loans you would have to pay interest every month even when you are at school

Yup. The interest begins the second you take money out

 

[whaleofatale]

Are you sure they are giving that much for everyone? I know for sure, that for bank loans you would have to pay interest every month even when you are at school

Interest begins accruing on federal loans immediately as well.

And no, not everyone receives that low of an interest rate. The people who are getting a rate that's less than 6% on private loans have excellent credit or a cosigner with excellent credit. Federal loans are usually the better option for a majority of students.

 

[oralcare123]

Interest begins accruing on federal loans immediately as well.

And no, not everyone receives that low of an interest rate. The people who are getting a rate that's less than 6% on private loans have excellent credit or a cosigner with excellent credit. Federal loans are usually the better option for a majority of students.

When I needed a loan to study at Canada, I was offered only $24K out of $100K as a student loan, the rest I had to get in the bank. I am a citizen. Even though 7% is much higher then 2%, it is a lot more convenient to start paying off your loans after graduation and not from god knows what money while you are still full time in school

 

[SmileItsLife]

Interest begins accruing on federal loans immediately as well.

And no, not everyone receives that low of an interest rate. The people who are getting a rate that's less than 6% on private loans have excellent credit or a cosigner with excellent credit. Federal loans are usually the better option for a majority of students.

True, plus if you unexpectedly die with federal loans, they won't go after your fam.

 

[stoopidmonkeycatdog]

True, plus if you unexpectedly die with federal loans, they won't go after your fam.

I'm pretty sure your family isn't responsible for any debts you owe after you die, no matter the type. Collectors can call them, but there is no legal responsibility to pay.

 

[whaleofatale]

I'm pretty sure your family isn't responsible for any debts you owe after you die, no matter the type. Collectors can call them, but there is no legal responsibility to pay.

Co-signers may be made responsible for a private student loan if the primary borrower dies. However a lender would never go after a non-cosigner family member.

 

[stoopidmonkeycatdog]

Co-signers may be made responsible for a private student loan if the primary borrower dies. However a lender would never go after a non-cosigner family member.

Well yeah but if they co-signed it, it was always their loan too.

 

[SmileItsLife]

Co-signers may be made responsible for a private student loan if the primary borrower dies. However a lender would never go after a non-cosigner family member.

Not necessarily always true. In California (and a few other states probably) if you obtain a private student loan while married, your spouse is responsible. The spouse doesn't have to have their name on the loan, and you are legally obligated to pay them back. If you get the private student loan before marriage though, your future spouse is fine if you die before paying back.

 

[whaleofatale]

Not necessarily always true. In California (and a few other states probably) if you obtain a private student loan while married, your spouse is responsible. The spouse doesn't have to have their name on the loan, and you are legally obligated to pay them back. If you get the private student loan before marriage though, your future spouse is fine if you die before paying back.

If there is a co-signer, the debt will go to that individual first. The only time that a private loan will be passed on to a spouse in a community property state is if the borrower dies and there was no co-signer. Even then, many lenders will work with the family to discharge all or party of the debt, but it's definitely something that families need to be aware of when borrowing private loans. Always read your promissory notes, folks!