STILL TOO HIGH, BUT...

Student loan interest rates headed below 4% (Sandra Block, 5/07/03, USA TODAY)

Rates on federal student loans, already at historic lows, could fall below 4% this summer, saving some college borrowers thousands in interest over the life of their loans.

The rate cuts will reduce monthly payments, a welcome break for graduates entering a tight job market. The average student debt load has doubled in the past decade to nearly $17,000, according to the Public Interest Research Group.

Unless rates for short-term Treasury bills rise this month, which the Federal Reserve has signaled is unlikely, the student loan rate on July 1 will fall to about 3.4% from 4.06%, loan analysts say.

''We're at lows that haven't been seen since the Eisenhower administration,'' said Patricia Scherschel at Sallie Mae, which funds student loans.

Posted by Orrin Judd at May 7, 2003 7:07 PM