Whats happening with student loan rates?
The interest rate on Stafford loans increased for the first time in five years, on July 1, 2005. This is the country’s main source of student loan funds. These loans were at record low rates last year — 3.37 percent. Graduates who acted quickly were able to lock in that low rate, by consolidating their student loans by June 30, 2005. The rate is now 5.3 percent for students repaying their student loans. That rock-bottom interest rate only applied to Stafford loans disbursed after July 1, 1998.
