Are interet rates set to go to fixed rates next year?

[aquaboy]

I just read that interest rates on student loans are set to go to a fixed 6.8% next year! Is it true? I can't believe that last year the rate was around 2.6% and now it's going to be this high. What have all of you heard?

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[mpp]

They will announce the new rate in June. Yes, the rate will likely be in the 6 percent range. Unless there is some legislation that passed that I haven't heard about, Stafford loans should remain variable rate while in school and during repayment; fixed rate for consolidated loans.

 

[DrRobert]

They will announce the new rate in June.

The new rate does not go into effect until July 1st - correct?

 

[mpp]

Correct.