Federal student loan interest rates set to drop to record lows

Students who intend on taking out federal student loans in the fall are set to benefit from the lowest interest rates in history. The news will provide some welcome respite to families preparing to fund the cost of a higher education but now also likely struggling financially as a result of the coronavirus pandemic. 

While interest rates for those looking to go private and take on the best student loan have already been dropping, it has now been revealed that the cost of federal student loans will plunge to record lows. According to Savingforcollege.com, interest rates for new federal student loans disbursed between July 1, 2020 and June 30, 2021 will fall by 1.779% percentage points, following a year-on-year decrease in the high yield of 10-year Treasury Notes on which the interest rates are based and recalculated each year. 

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