Student loans set for interest rate hike
DENISON, Texas (KTEN) — Going to college is about to get a bit more expensive as the student loan rate is set to increase to 4.99 percent.
That's more than a 2 percent jump compared to the 2.75 percent rate for the 2020-21 school year.
The current student loan rate is 3.73 percent.
Stephanie Martin, the director of financial aid at Grayson College, has a tip for students seeking a higher education.
"There's two types of loans: You have subsidized loans that are interest-free while students are in school; and then unsubsidized loans where interest accrues immediately," she explained. "We counsel students to take out subsidized loans as much as possible, as long as you qualify for them."
Martin adds she believes inflation has contributed to the increase in interest rates. The change is set to go into effect on July 1.