(MARYVILLE TN) On Tuesday (5/12/2020) Senate Education Committee Chairman Lamar Alexander (R-Tenn.) said, "Interest rates on new federal student loans will drop to historic lows on July 1st."

The interest rate on undergraduate loans will be 2.75% for the 2020-2021 school year, down from 4.53% in the 2019-2020 school year. The interest rate on loans for graduate students will be 4.3% (down from 6.08%) and for PLUS loans for parents and graduates will be 5.3% (down from 7.08%).

Senator Alexander noted, "This rate drop is a result of Congress working together in 2013 with President Obama to tie student loan rates to actual federal government borrowing costs. And I plan to continue working together with my colleagues in a similar bipartisan fashion this year to continue passing legislation to help make college more worth student's time and money."