(Pablo Martinez Monsivais/AP)College students will pay more to borrow money from the federal government this fall as student loan interest rates are set to rise for the second year in a row. Interest rates on federal student loans will climb by more than half a percentage point as a result of the Treasury Department’s auction of 10-year notes Wednesday. The federal government resets rates on student loans every year based on the spring rate of the note, plus a fixed margin. Until last year, families had benefited from historically low student loan interest rates. Lawmakers decided several years ago to tie federal student loan rates to the market, rather than setting them.

Source: Washington Post May 10, 2018 16:20 UTC