Interest Rates for Federal Student Loans Increase

Veterinary students need to be aware that interest rates for federal student loans have increased, heightening the financial burden most veterinarians face when they begin practicing.

RELATED:

• Ways to Ease Student Debt Burden

• Best Advice for Overwhelming Student Debt

Rates for direct unsubsidized loans for graduate students rose to 6 percent, which is up from the previous rate of 5.31 percent. Rates for direct PLUS loans rose to 7 percent, compared with 6.31 percent previously.

These new changes — based on formulas outlined in the Higher Education Act — went into effect July 1, but they do not apply to federal student loans disbursed before this date or to any private student loans.

For example, if you are a veterinary student taking out $50,000 in loans next year, you will ultimately be paying $2,000 more over a 10-year standard repayment plan than if you would have taken out that same loan amount this year.

To find out if your future student loans will be affected, this chart from the American Veterinary Medical Association will give you all the information you need.