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Interest rates on federal student loans going up

(KOMO file photo)

Borrowing money for college is going to get more expensive. The interest rates for federal student loans for the 2017-2018 academic year adjust in July – and they're going up.

The government hasn't announced the rates yet, but our news partners at Consumer Reports did the math based on the formula used.

The new interest rates for the popular Stafford Loan will jump from 3.76 percent to 4.45 percent for undergrads and from 5.31 to 6 percent for graduate students.

Rates on PLUS loans, available to parents, will go to 7 percent.

Federal loans will still be a relatively good deal, almost always a better choice than a private student loan.

Even so, Consumer Reports cautions families and students that they need to be extra careful about how much money they borrow to pay for that college education

A good rule of thumb: Your student loan payments should be no more than 10 - 15 percent of your expected gross income when you graduate.

More Info: Federal Student Loans Are About to Get More Expensive

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