Avoiding Rate Hikes On Student Loans
As interest rates begin to rise again after historic lows, Juno has been carefully monitoring the markets. We’re an organization that protects students from high interest loans, and spend much of our time researching and forecasting the rate environment.
Since January, lenders have been anticipating rate hikes from the Fed, along with other market forces, and have begun to raise their lending interest rates accordingly. In the first couple months of 2022, we watched as Citizens raised starting fixed interest rates by .15% every 30 days.
This is expected; the Federal Reserve has expressed concern about inflation, and plans to raise interest rates to combat it throughout the year. Unfortunately, this has consequences for student loans.
Both federal and private student loans will almost certainly increase in borrowing costs for the Fall ‘22 cycle. Some experts estimate that a loan taken out in March may be .5% cheaper than in July, but no one really knows for certain.
As a result, many students attempting to mitigate the risks are looking to lock in rates now. This is possible with many schools and lenders – you can apply for a loan now without incurring additional costs or fees. By taking action immediately, it’s possible to still take advantage of low rates before upcoming hikes.
If you’re interested in comparing all your options, visit the Juno site to get a free and fast rate check. Then you’ll be able to see if it makes sense to move forward, and lock in now. You’ll still be able to cancel if you change your mind, and interest won’t begin accruing until the funds are sent to the school (typically in the fall).
Join the Juno community today, and become part of 90,000+ families fighting for a better deal. There’s no cost or commitment – it just takes three minutes to save thousands of dollars.
Juno came into existence to help students save money on student loans and other financial products through group buying power by negotiating with lenders. The Juno Team has worked with 90,000+ students and families to help them save money.
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