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Elevage Partners

Good news: Student loan interest rates decline

closeup of a mini graduation cap on cash

For the first time in three years, interest rates on federal student loans will decrease. The lower rates apply to new federal student loans made on or after July 1, 2019, through June 30, 2020. The interest rate is fixed for the life of the loan.

The interest rate on direct Stafford Loans falls to 4.53% from 5.05% for undergraduate students. These subsidized student loans are based on financial need, as determined by the FAFSA process.

The interest rate is the same, 4.53%, for unsubsidized loans for undergraduate students, as well.

For graduate student loans, the interest rate fell to 6.08%, down from 6.6%.

For more information on your financial situation and how to best save for college, contact one of our advisors today.

  • Typical questions parents have about college funding include:
  • Should I invest in 529 plans?
  • What about education IRAs?
  • How do my investments affect financial aid?
  • Should I take out loans or should the children take loans in their names?
  • Does it make sense to tap the equity in my home to help finance education?
  • Can I borrow from my retirement plan to help fund college?

We can answer these questions, and more, as part of our comprehensive financial planning that takes a look at all of your financial needs, not just planning for college. Contact one of our advisors today.

Important Disclosure(s)
Past performance is not an indicator of future results. This material is not financial advice or an offer to sell any product. The statements contained herein are solely based upon the opinions of Elevage Partners, LLC (“Elevage”). Elevage is a registered investment adviser. More information about the firm can be found in its Form ADV Part 2, which may be requested by calling (877) 922-8243 or visiting http://www.adviserinfo.sec.gov. The information contained herein is derived from sources we believe to be reliable, but which we have not independently verified. Elevage assumes no responsibility for errors, inaccuracies or omissions in this information. Elevage reserves the right to modify its current investment strategies and techniques based on changing market dynamics or client needs. The information provided in this report should not be considered a recommendation to purchase or sell any particular security. There is no assurance that any securities discussed herein will remain in an account’s portfolio at the time you receive. It should not be assumed that any of the securities transactions, holdings or sectors discussed were, or will prove to be profitable, or that the investment recommendations or decisions Elevage makes in the future will be profitable or will equal the investment performance of the securities discussed herein.ELV-17-02