The purpose of this disclosure is to explain how we make money without charging you for our content.
Our mission is to help people at any stage of life make smart financial decisions through research, reporting, reviews, recommendations, and tools.
Earning your trust is essential to our success, and we believe transparency is critical to creating that trust. To that end, you should know that many or all of the companies featured here are partners who advertise with us.
Our content is free because our partners pay us a referral fee if you click on links or call any of the phone numbers on our site. If you choose to interact with the content on our site, we will likely receive compensation. If you don't, we will not be compensated. Ultimately the choice is yours.
Opinions are our own and our editors and staff writers are instructed to maintain editorial integrity, but compensation along with in-depth research will determine where, how, and in what order they appear on the page.
To find out more about our editorial process and how we make money, click here.
The burden of borrowing for higher ed just got a little lighter– for now. Capping months of partisan debate, Congress in August changed the formula behind federal education loan interest rates.
The rates for loans taken out for any given school year will now be based on the yield of the 10-year Treasury note the prior summer.
The upshot: This year the APR on federal student loans will be 4% — slightly higher than the previous rate for subsidized borrowers (who don’t run up interest charges while in school), but a big savings on unsubsidized loans, which had been set at 6.9%.
Rates on new parent PLUS loans will be 7.4%, after fees, down from 8.8%. Loan costs for future borrowers, though, could rise again with the market.
Students should stick with federal loans, but parents with good credit can find lower rates elsewhere. SunTrust, for one, recently offered fixed APRs as low as 4.5% on five-year education loans.