May 23, 2003

Interest Rates on Student Loans Are Expected to Hit All-Time Low

By WILL POTTER

Although college students are facing increases in tuition and some decreases in financial aid, borrowers of student loans already in repayment may soon get some financial relief.

The interest rate for student loans is expected to hit an all-time low, dropping to 3.42 percent from 4.06 percent. The rate will be determined at the end of May based on short-term U.S. Treasury bill rates, and the new interest rate will take effect in July. Just three years ago, the interest rate was more

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