There is good news for college students using federal financial aid this year: Pell Grant maximums will increase as, for the first time in three years, student loan interest rates will decrease. The maximum amount for Federal Pell Grants issued between July 1, 2019, and June 1, 2020, will rise to $6,195, an increase of $100 from the 2018-2019 rate. Federal Pell Grants usually are awarded only to undergraduate students and are based on financial need.
Federal student loan interest rates are also changing on July 1, 2019. The interest rate for new undergraduate loans issued on or after July 1 will drop from 5.05% to 4.53%. While that doesn't sound like much, the difference could be thousands of dollars over the normal lifetime of a student loan. The interest rates for graduate loans will also drop from 6.60% to 6.08%, and PLUS loans (which are usually issued to the parents of a student or to graduate or professional students) will drop from 7.60% to 7.08%. Read more about the rate changes on Military.com.
