Student Lending Analytics Blog

What Is the Average Interest Rate on a Private Student Loan Today?

Update (9/18/2009):  For an updated answer to this question, visit this new post. 

Update (4/26/09):  For an SLA analysis of the interest rates on top 6 private lenders from April 2009, review this post, "Shopping for student loans makes a difference"

Also check out SLA's Private Student Loan Ratings, the only independent, objective service that rates lenders based on expected loan costs.

I hear this question a lot these days, so I thought that I would take a shot at answering it (I apologize in advance for the length of my response). 

Here is what we know, based on recent information disclosed by the top three student lenders, based on market share estimates from SLA:

U.S. Bank Raises Interest Rates on No Fee Education Loan

Effective November 22, 2008, U.S. Bank has raised their interest rates on their No Fee Education Loan, a private loan product, from 195 basis points to 400 basis points dependent on loan tier.  Here is a summary of their current and previous rates:

Hearing on Negotiated Rulemaking (October 15, 2008 - Cuyahoga Community College)

Here is a link to the actual transcript of the hearing. 

The attached file below is a compilation of excerpts from the hearing which focus on student loan related issues only and are not meant to capture all of the comments made by the speakers: Download Hearing on Negotiated Rulemaking on October 15

Managing Institutional Grants in Challenging Times: Financial Aid Administrators Respond

Here are the results of a recent flash survey conducted by SLA, in which financial aid administrators were asked how they are managing institututional grants and aid in these challenging times (responses are provided verbatim):

Paulson To Introduce Plan to Thaw Consumer Credit Markets Including Student Loans

The Wall Street Journal is reporting the Secretary Paulson will be unveiling his plan tomorrow (Tuesday).  Here is the broad blueprint for the plan, according to WSJ:

Collections, A Growth Industry In A Recession: Sallie Mae To Add 1,100 Credit and Collections Jobs in Delaware

A little slow with this news item from Thursday (November 20), but it caught my eye after an earlier post about Premiere Credit, a contractor for the Department of Education.  This article indicated that "Sallie Mae plans to hire about 750 employees for its new Credit Operations Center in Newark by the end of 2010 and add another 350 in 2011."  

Boston College to Retain Need-Blind Admissions; Budget Cuts Going to Reserve Fund

Here are the highlights of a letter from President Leahy of Boston College released on October 20th.  It provides some insights as to strategies that one school, BC, is utilizing to deal with the economic crisis:

Bailout (Rescue) Du Jour: Citigroup

After a frenetic weekend to save another U.S. financial institution, Citigroup received the following support late Sunday night from the U.S. government:

Considering Direct Lending? Advice From Your Peers

In our recent flash survey on Trends in FFELP vs. Direct Lending, we garnered advice from those who are currently participating in the DL program. Since a Financial Aid administrator indicated today that this information was helpful, I thought that I would publish it on the blog. 

Here is what they had to say (all responses came directly verbatim from the survey):

Nebraska Expands Collegebound Scholarship Progam

It is interesting to see more states emphasizing solutions to assist students who live in the state and attend their public educational institutions (earlier post about Connecticut partnering with credit unions).  Here are the highlights of the Collegebound Nebraska Scholarship Program: