Good News and Bad News for College Graduates
There's some good news for college students and recent grads. If you're having trouble keeping up with those student loans, you'll see some much needed help this summer.
The rates on student loans are dropping this summer to the lowest level in history, but with that good news comes some bad. As the interest rates go down, the amount of money you'll need to borrow could go up.
Scott Lindberg is one of millions of students left after graduation with a heaping pile of student loans. But help is on the way. The government just announced rates on student loans are dropping starting July 1st. Dropping from over four percent to less than three and a half percent.
Two thirds of last year's students borrowed at least once during their undergraduate year, meaning at least 16-thousand dollars. Monday's news will now save students at the university around 6-hundred dollars. The new rates won't only effect students like Scott. They'll also apply to students who are still in school, who are in their 6 month grace period after graduation, and who's loans are in deferment. And while interest rates are dropping, tuition is going up.
The Board of Regents will vote on a proposed tuition hike of 15% next year, and 12% the year after that.