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Student Loan Interest Rate Changes

Dear Clients & Friends,

I want to brief everyone on the new federal student loan interest rates that take effect today, July 1st. The rates for the 2018-2019 school year are surely notable because they are the highest in almost a decade. The rates for some types of federal student loans are more than 70% higher than the rates for the average car loan in the US. This is an unfortunate and persistent problem with the affordability of American education. Regardless, here are the new rates:

Subsidized vs. unsubsidized

With subsidized loans, the federal government pays the interest that accrues while the student is in school, during the six-month grace period after graduation, and during any loan deferment periods. With unsubsidized loans, the borrower is responsible for paying the interest during these periods. Only undergraduate students are eligible for subsidized loans, and eligibility is based on demonstrated financial need. The rate on all types mentioned herein are fixed for the life of the loan.

Next weekend, we’ll brief everyone on the later chapter of federal financial resources, namely the annual report on the Social Security/Medicare Trust fund. You will want to read this, so stay tuned. Until then, have a wonderful weekend.


*Autolan Data provided by Experian.


Matthew Ramer, AIF® Principal, Financial Advisor MOR Wealth Management, LLC

1801 Market Street, Suite 2435 Philadelphia, PA 19103 P: 267.930-8301 | c: 215-694-4784 | f: 267.284.4847 |

601 21st Street, Suite 300 Vero Beach, FL 32960 P: 772-453-2810

The majority of this content was written and distributed MOR Wealth Management, all rights reserved. Securities and advisory services offered through Commonwealth Financial Network, Member FINRA/SIPC, a registered investment adviser. Fixed insurance products and services offered through CES Insurance Agency.


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