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College borrowers will get a small break in the coming school year, as interest rates on new federal student loans fall slightly this summer.
Rates had risen in the last two years. But rates on federal loans taken for the next academic year will drop more than half a percentage point, said Mark Kantrowitz, publisher and vice president of research at Savingforcollege.com.
Mr. Kantrowitz calculated the new rates using the federal government’s formula. (The Education Department has not formally announced the rates.)
Since 2013, rates on student loans have been set by a formula based on the sale of 10-year Treasury notes each spring.
The new rates will take effect every July 1 and are fixed for the life of the loan.
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