For Many Borrowers, Federal Student Loan Interest Rates Don’t Matter Anymore

Student loan interest rates are a point of contention for many borrowers. And with rates rising over the last few years, some are sounding the red alert on those rates. But in truth, they don’t matter for most borrowers.

Even though student loan interest rates are higher right now than they were a few years ago, they only matter to a certain segment of borrowers. Since many borrowers are on an income-driven repayment plan, their monthly payment is based on their income, not their student loan interest rate.