news blurb from USA Today ... see

(snip)"A ho-hum interest rate environment can lull borrowers into thinking that cheap money will be with us, well, nearly forever and one might think talking about rates isn't relevant.

But savers, borrowers and market watchers are wise to prepare for changes in the wind, even if huge rate increases aren't on near-term forecasts.

High school grads heading to college should bank on higher rates ahead for college loans.

"I expect interest rates on federal education loans to continue to rise each year for the next several years, especially as the Federal Reserve board stops manipulating interest rates," said Mark Kantrowitz of Edvisors.com.

As of July 1, federal student loan rates will edge up. Rates overall will be up 0.8% compared to current rates.

Federal Stafford Loans for undergraduate students will be 4.66% — up from 3.86%. Federal Stafford Loans for graduate students will be 6.21% — up from 5.41%.

Federal Grad PLUS and Federal Parent PLUS Loans will be at 7.21% — up from 6.41%.

The higher rates add about $46 to $49 a year to borrowing costs for every $10,000 in student loans borrowed on a 10-year term. Total costs would increase by $460 to $492 over a 10-year repayment term of the loans, Kantrowitz said.

Last year, federal student loan rates were unusually low, with nowhere to go but up, Kantrowitz said.

But by next year, he predicts rates could be higher than 6.8% on the Stafford loan and higher than 7.9% on PLUS loans.

Kantrowitz said he predicted rates would start heading up when Congress switched the way student loan rates are handled. Now interest rates are fixed, but each year's loans are at a new fixed rate. Congress changed the interest-rate formula in August, retroactive to July 1, 2013."(snip)