Student Loan Rates Inch Up

But don’t panic. The increase won’t dent your budget much.

(Image credit: Allison Michael Orenstein)

First, the bad news: Federal student loans are more expensive this year. Undergraduate Stafford loans disbursed after July 1, 2014, carry a 4.66% interest rate, up from 3.86%. Rates on Staffords for graduate and professional students are now 6.21%, and PLUS loans for graduates and parents now charge 7.21%. But there’s good news: The hikes are manageable.

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Former Staff Writer, Kiplinger's Personal Finance