Borrowing Money for College? It’ll Cost More to Pay it Back

borrowing money for college

(Image: iStock/Merlas)

Borrowing money for college just got a little more costly.

It’s been widely reported that interest rates on federal student loans will be going up effective July 1. Undergraduates who take out Stafford loans for the 2017–2018 school year will pay 4.45% instead of the current rate of 3.76%.

Most experts say that even with the higher rates, the loans are still a good deal.

“Higher federal student loan rates and more expensive loans for the 2017–2018 school year aren’t exactly welcome news, but some things haven’t changed for borrowers as federal student loans are still a better bet than private loans,” says Brianna McGurran of the personal finance website NerdWallet, as reported in the Washington Post.

“Since their interest rates are fixed, they won’t go up in the future, and they also come with crucial protections like income-driven repayment and forgiveness for public sector workers,” she continued.

More Money Going Out

But higher interest rates do mean more money will be needed to repay those loans for those borrowing money for college.

According to student loan site, the new rate of 4.45% will …read more <img …read more      

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