WASHINGTON, D.C. (WFIE) - Some sobering news for students taking out new federal loans.
Starting Tuesday and continuing for the next year, the interest rate on all of the student loans offered by the federal government will increase by .8 %.
The change stems from a bipartisan deal brokered last year by Congress and signed by President Obama that ties the rates to the financial markets.
Until last year, student loan interest rates were set by law and did not adjust with economic conditions.
For every $10,000 in student loans taken out, the average borrower can expect to pay $4 dollars extra a month to pay it back.