Student-Loan Interest Rates Set to Reach Great Recession Highs
Anyone who needs to borrow from the US government to cover college tuition this fall will likely face the highest borrowing costs for student loans in more than 15 years.
That’s because interest rates on federal student debt are determined each academic year by a formula taking the yield from May’s US Treasury 10-year note auction and adding 2.05%. Yields have soared in recent weeks as Federal Reserve officials reconsidered the timing of their first interest-rate cut in light of the lack of progress on inflation.