The interest rate you’ll pay on your federal student loans will depend on whether you have a government-backed loan or an individual-based loan, but they are usually set at about 6.8% or less for most borrowers, according to federal data.
If you have an individual loan, the rate is typically closer to 8%.
For the most part, interest rates are set to reflect the current market value of the loan, which can vary widely by borrower.
And even when rates are lower, you might still end up paying more than you would have if you were a government subsidized student.
“There are no guaranteed minimums for student loan rates, so you’re really only paying your fair share,” said Richard G. Davis, a spokesman for the U.S. Department of Education.
“If you’re making the assumption that you’re going to pay your share, it’s probably worth taking a look at what you’re paying.”
A student loan is a debt you have to pay off in full.
The federal government guarantees the interest on it, and it has to be repaid.
The interest you pay on it is generally set at the lower of your principal amount or the interest rate set by the federal government.
You can find out how much you owe on your student loan by using the federal student loan repayment calculator, or by contacting the Federal Reserve.
Student loan interest rate calculatorThis article is not intended as legal advice.
The information provided is for educational purposes only and should not be construed as legal or financial advice.
Contact your lender or your state’s loan servicer for more information about how your loan may affect your loan repayment.© 2018 The Associated Press.
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