Interest rates for federal loans taken out on or after July 1, 2019 will have a significantly lower interest rate than last year. This is the first decrease in three years.
The new fixed rates will be as follows:
|Loan Type||2018-2019 Rate||2019-2020 Rate|
What it Means for Borrowers
This decrease will result in lower interest payments for millions of students and parents borrowing from the federal government to pay for college in for the 2019–2020 school year.
Borrowers’ existing federal student loans are not affected, as these rates only affect newly disbursed loans.
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