For years, student loan borrowers have suffered under the weight of excessive debt and interest. That’s about to change.
Amid the economic shock from the coronavirus outbreak, the yield on the 10-year Treasury note, which is a barometer for student loans and other borrowing rates, has plummeted.
The U.S. Treasury Department’s auction of 10-year notes on Tuesday had a high yield of just 0.700%, down from 2.479% a year earlier.
For student borrowers, all federal education loans issued for 2020-21 will be subject to lower rates based on changes in the government’s cost of borrowing.
“This is good news in an unfairly difficult time,” said Robert Humann, general manager at Credible.com, a marketplace of online lenders.