Student Loan Interest Rates for 2017-2018

The May Treasury Note auction is done; one of its results is an increase in student loan interest rates for the coming school year. Direct student loans (subsidized and unsubsidized) disbursed between July 1, 2017 and June 30, 2018, will carry an interest rate of 4.45%, up from 3.76% in the current year. PLUS loan interest rates went up as well: graduate student PLUS loans will be at 6% and Parent PLUS loans will be at 7%.

The interest rate increase means a student taking out the maximum direct loan for next year will pay about $3.50 per month in additional interest on a 10-year payment plan after graduation on that loan. (A number of factors might make that higher or lower, including whether a portion of the loan was subsidized and whether any payments were made during the school years.)

Parents might be wondering if they can wring a few more dollars out of the system at this year’s 6.31% rate. The answer is probably not– and the headaches of doing so would likely cost more than the interest savings. But you might inquire with your school’s financial aid office just in case.

Here is a list of all interest rates for the coming year, as well as a link to loan fees.


Colleges Still Have Openings for Fall ’17

Further confirming that college can be a buyer’s market, the National Association for College Admission Counseling’s annual College Openings Update: Options for Qualified Students (a list of schools still accepting applications after May 1) shows an increase in the number of schools still accepting applications compared with last year. In fact, the number has gone up every year since 2013; it increased by about 20% from 2016 to 2017. Continue reading Colleges Still Have Openings for Fall ’17

Some School Rankings

No, I’m not trying to excuse my recent absence from posting by suddenly buying into ratings hype!

The Princeton Review has some interesting rankings that might be a good second step on your winnowing-down-of-schools process. (The first step being of course identifying schools that you can likely afford.) In addition to their ranking of the “Best” 381 colleges, Continue reading Some School Rankings

Dear Tyler & Isabella, Let’s Pick a College

Today’s post is written by a fellow fee-only advisor, Richard Freight, CFP®, EA, of IAM Financial, who is a father of two who will hopefully be college-bound. 

tyler and isabella

Dear Tyler & Isabella,

These are some of the things I want you to consider when choosing what and where to study in college…..

When the time comes for my son Tyler, and my daughter Isabella, to go to college, I image us having this wise and thoughtful conversation around the pros and cons of this Continue reading Dear Tyler & Isabella, Let’s Pick a College

Planning for College Cash Flow

Before you sign up, you have to figure out how you’re going to pay for college each year. The first step in figuring that out is confirming with the school what has to happen for your aid package to be renewed. Then, consider the additional costs that aren’t included in the award letter—travel to and from school, activities your student intends to participate in, spending money. With all of those items written down, you have a good sense of what you’ll actually spend each year. This may seem really elementary, but most Continue reading Planning for College Cash Flow

“And, It Comes With a Money Back Guarantee”

From time to time, another fee-only advisor writes a post for my blog. This is from Warren Ward of WWA Planning & Investments. I hope you enjoy a new perspective!

Josiah Wedgewood founded his eponymous china company in 1759. He used a range of clever marketing strategies to promote his china across the Western world and among them was today’s title, a selling technique still in common use. These days, such a guarantee is almost assumed as retailers struggle to defend market share. As soon as one Continue reading “And, It Comes With a Money Back Guarantee”

Negotiating an Aid Award

My apologies if this is a little down-to-the-wire. Then again, you might do better waiting until the last minute to negotiate an aid award. If you’re planning to do so, here are a few things you need to know.

The first step is to determine what type of aid is being offered, need or merit (or a Continue reading Negotiating an Aid Award