The interest rates on federal student loans will go down next academic year.
The government sets the annual rates on those loans once a year, based on the 10-year Treasury note, which has also been on the decline.
The interest rate on new undergraduate Stafford loans will be 4.5% for the 2019-2010 academic year, down from 5% last year. For graduate students, Stafford loans will come with a 6% interest rate, compared with 6.6% now. Rates on Plus loans for graduate students and parents will fall to 7%, down from 7.6% last year.
Undergraduate students can borrow between $5,500 and $12,500 a year, depending on what year they're in and whether they're dependents or independent. Graduate students can typically borrow more.
