LANSING, MI (WSYM) - — Interest rates on student loans have slipped to 2.75%, down from almost 5% last year.
The drop could save students lots of money in the long run.
“With everything that’s going on with the coronavirus, one of the first things that the federal government did was lower the interest rates at the federal level. That pushes down to the banks and various programs,” said Joe Irish, a CPA at Siena Investments in Grand Ledge.
Irish says the low rates are a blessing for students; many might struggle to find jobs in the current economy.
“Any time you come out of school with debt, it’s disheartening...you have a bunch of debt, and most of the paycheck goes to paying the loans,” he said. “These students are going to have more trouble paying that back long term...so they lowered the interest rates to encourage them to still go to school.”
Irish says despite the pandemic, it’s a good idea to take out a loan and go back to school.
“It’s an investment in yourself. So as long as you’re investing wisely in degrees and programs that are bound to create jobs, then I don’t think it’s a risk at all.”
He says there’s plenty of time to do it.
“I don’t see it reversing any time in the near future...and to me that’s like 1-2 years, but we’re in a big unknown with everything that’s going on.”
Irish tells Fox 47 that even though rates are low, it’s best to still try to get as much financial aid as possible.
