How to Lower Your Federal Student Loan Interest Rate
Congress sets federal student loan interest rates each year and they remain fixed for the life of the loan. They are calculated using 10 year Treasury notes plus a margin. This formula works for undergraduate loans, graduate student loans and parent PLUS loans. In addition to the interest rate, there’s a fixed buffer of extra interest that covers deferrals, forbearance or defaults. Interest Rates Interest on student loans can add up quickly. Fortunately, you have the power to reduce your rates. Congress sets federal student