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They are also may not be payday-loan high interest, but the interest is not necessarily low either. Federal Plus loans were 8.5% until that program was shut do

They are also may not be payday-loan high interest, but the interest is not necessarily low either. Federal Plus loans were 8.5% until that program was shut down in 2010. [0][1] Graduate Direct Subsidized and Subsidized Federal loan rates were 7.9% from 2006-2013 and have not dropped below 6.3% since. [1] [0] https://en.wikipedia.org/wiki/Federal_Family_Education_Loan_Program#End_of_new_loans https://en.wikipedia.org/wiki/Federal_Family_Education_Loan_... [1] https://www.finder.com/federal-student-loan-interest-rates-by-year https://www.finder.com/federal-student-loan-interest-rates-b...

dragonwriter 5y ago
> Federal Plus loans were 8.5% until that program was shut down in 2010. Federal PLUS loans were never shut down, are still available [0]; what was shut down was non-Direct federal loans, including the non-Direct PLUS loans, which had a higher interest rate than Direct PLUS loans. [1] [0] https://studentaid.gov/understand-aid/types/loans/plus https://studentaid.gov/understand-aid/types/loans/plus [1] scroll down to “Interest Rates on Federal PLUS loans” which shows historical direct and non-Direct (FFEL) rates: https://www.savingforcollege.com/article/historical-federal-student-interest-rates-and-fees https://www.savingforcollege.com/article/historical-federal-...
- bredren 5y ago
  Thank you for clarifying this.
gambiting 5y ago
Yeah, that's insane level of interest. My own student debt here in UK has the interest rate of 1.1%. I've just remortgaged our house at 1.29%, and our car is on 4% finance. All standard deals, nothing crazy. 7.9 or even 6.3% interest on the student loans that Americans get would be ruinous.
rocqua 5y ago
Dang those rates are crazy. In the Netherlands, students loans are guven by the state. The interest rate is legally set to a mix of government bond interest (10 and 5 years). They included a clause that the interest never goes negative.

dragonwriter 5y ago

> Federal Plus loans were 8.5% until that program was shut down in 2010. Federal PLUS loans were never shut down, are still available [0]; what was shut down was non-Direct federal loans, including the non-Direct PLUS loans, which had a higher interest rate than Direct PLUS loans. [1] [0] https://studentaid.gov/understand-aid/types/loans/plus https://studentaid.gov/understand-aid/types/loans/plus [1] scroll down to “Interest Rates on Federal PLUS loans” which shows historical direct and non-Direct (FFEL) rates: https://www.savingforcollege.com/article/historical-federal-student-interest-rates-and-fees https://www.savingforcollege.com/article/historical-federal-...

bredren 5y ago
Thank you for clarifying this.

gambiting 5y ago

Yeah, that's insane level of interest. My own student debt here in UK has the interest rate of 1.1%. I've just remortgaged our house at 1.29%, and our car is on 4% finance. All standard deals, nothing crazy. 7.9 or even 6.3% interest on the student loans that Americans get would be ruinous.

rocqua 5y ago

Dang those rates are crazy. In the Netherlands, students loans are guven by the state. The interest rate is legally set to a mix of government bond interest (10 and 5 years). They included a clause that the interest never goes negative.