Students, you may have to give up that grande mocha cappuccino once a month. Interest rates are rising on Tuesday for students taking out new loans, thanks to a bipartisan deal brokered by Congress and signed by President Obama. The deal tied rates to financial markets. Interest rates go from 3.86 to 4.66 percent on undergraduate Stafford loans. Graduate student loans go from 5.41 percent to 6.21 percent. Interest rates on Plus loans for parents go from 6.41 percent to 7.21 percent. For every $10,000 borrowed, the average borrower under the hike will pay back about $4 more every month when they begin paying back the money — about the price of a fancy latte. Buy that coffee, or pay the loan? Hmmm, tough choice.
Sign up for top Business news direct to your inbox.
IN-DEPTH
- How to Get Out From Under Student Loan Debt
- Student Loan Debt a Drag for Young Households
- More Borrowers Struggling with Student-Loan Payments
-- By The Associated Press and NBC News staff