Student Loan Borrowers Benefit from Low Interest Rates

Press Release, U.S. Department of Education
May 24, 2004
http://www.ed.gov/news/pressreleases/2004/05/05242004b.html

The U.S. Secretary of Education, Rod Paige, announced that the interest rates on federal student loans have dropped to 3.37%, which is the lowest percentage in nearly 35 years.

"Low-cost student loans have made college a reality for millions of students and their families, and lower interest rates mean more money in the pockets of the borrowers," Secretary Paige said.

Three years ago, the interest rate was almost 6%. These interest rates are calculated based on a federal formula, which differs depending on the current status of the student. Over 13 million students apply for federal aid annually, which is expected to amount to over $50 billion in new loans for the next school year.