Federal student loan interest rates have risen. As of July 1, undergraduates who take out direct subsidized loans or direct unsubsidized loans will be paying 4.45% in interest – an increase from the previous rate of 3.76%. Graduate students who’ve taken out direct unsubsidized stafford loans will see interest rates rise from 5.31% last year to 6.00% this year. Graduate students, or parents of graduate students, who’ve taken out direct PLUS loans will see their interest rates rise from 6.31% to 7.00%.
If you are still in school and taking out loans, government loans are most often the best deal – even with the high rates. However, they should also consider ways to reduce how much they take on. The benefit of still being in school is that you still have time to reduce the total amount of debt you take out – which means less to pay back. For example, take on an extra job to cover a portion of tuition and expenses and try not to borrow to buy books or for living expenses.
Once you graduate, you should consider refinancing. With the average credit score in America just having surpassed 700, the time has never been better for graduates to seek lower interest rates. Working with a student loan refinancing company, such as Purefy, can help you to be in control of your loans by consolidating each payment into one simple Purefy loan. No more paying various lenders, or multiple interest rates on your loans. Refinancing your student loans ideally will get you a lower interest rate, not to mention out of debt faster.
With Purefy, you can refinance all federal, private, and direct PLUS loans into one monthly payment. Then you can get a plan that suits your needs, with a rate that fits your budget. Borrowers with Purefy are saving thousands. We have lowered customers’ interest rates by an average of 2.12%*. There are no fees – no pre-payment penalties, origination, or application fees – and the application process is quick and easy. Just answer 5 simple questions to check your rate – before a credit check or applying.
After you’ve found your rate, you’ll be able to review rates, discounts, and your new monthly payment – all suited to your specific situation. You’ll be able to do all of this in less than 60 seconds and apply in less than 15 minutes.
Purefy is on a mission to help others discover what options they have available when dealing with student loans. We offer free consultations about your specific student loan situation via phone at 202-524-1115, or email firstname.lastname@example.org and are always happy to help find the best solution for you.