Stratus Financial

90 Discovery Irvine, CA 92618
photo of student pilot in an airplane
photo of student pilot in an airplane

Federal Reserve Rate Increase Explained and How You As A Student Will Be Affected

The interest rate increase announced by the Federal Reserve last month is the biggest in more than two decades, and it signals the Central Bank’s determination to fight inflationary pressures.


In the United States, inflation is now at a 40-year high. Many experts believe that interest rates will have to rise in order to keep inflation in check. This could have a negative impact on the economy, as higher interest rates make it more expensive to borrow money.


Interest Rates and Fees for Student Loans

While federal student loans come with a fixed rate set by the government, current borrowers aren’t affected because those loans carry less variable interest.  New batches of federal loans are priced each July, based on the 10-year Treasury bond auction in May.


It’s a different case for private student loan borrowers. They are expected to pay more for their private loans – both fixed and variable rates are linked with benchmarks that track the federal funds rate.


Private lenders are already starting to price additional expected increases into their new fixed-rate loans. Higher-education expert Mark Kantrowitz says that rates on new private student loans are going to increase between 1.5% and 2%. It all depends on what kind of term you’re looking at, with an expected range from 7% to as high as 18%. This means that the variable rate will likely go higher first, but it could change quickly depending on the outcome of this development in private loan markets. 


Make the most out of the situation

Looking to take out private student loans? We want to help you with our loan products at Stratus. We have both variable and fixed rate products with flexible payment options that make the most sense for you.


Stratus and our loan officers want the very best and least expensive loan for you


If you’re ready to take the next step and get started comparison shopping for a private student loan, check out Stratus Loans. We have the best rate you’ll get anywhere to go from zero to hero!

Related Blogs

How much do airline pilots make?

United Airlines Pilots Get Pay Raise as Global Travel Disruption Continues

How is a pilot’s salary calculated?

2.1 million new commercial aviation personnel needed

Pilot pay increased as hiring battle heats up

Pilot Pay Raises at PSA Airlines, Piedmont, and Envoy

American Airlines offers competitive pay raise to pilots

Envoy Air Offers New Bonus for Experienced First Officers

Airline Pilots Demand Higher Wages and Better Treatment

Things I Wish I Knew as a Student Pilot

How airlines around the world are tackling pilot shortages

Airlines Struggle to Keep Up With Pilot Shortage

Air travel is picking up. Now the airlines have to play catch up.

Career Pilot Demand Forecast for 2023

Pilot in demand for the next 20 years

Competitors seek pilots from distressed airlines

The Shortage of Pilots Around the World is a Big Concern

Airlines have Doubled Pay, and There’s No Better Time to Becoming a Pilot

Historic Pilot Shortage Encourages Flight Schools To Fill The Gap

Mother-Daughter Take On The Skies As Part of Southwest Airlines

American Airlines Make Flight School More Affordable and Accessible

Invest On Your Future: How Much Does It Take To Become A Pilot?

Get Started On Your Books: The Top Five Things To Study In Advance

More Pilots Needed: Airlines Turn to Diverse Crew

5 Helpful Techniques To Become A Pilot

Things you should do before signing up for a flight school

Frontier Airlines launching a pilot program for new generation pilots

Be Prepared: The Challenges Of Being A Pilot

Staff Shortage in Airport across the country

5 Safety Spotlight Pilot Tips

Tips to help you fly like a PRO

What do the stripes on a pilot’s uniform mean in the US?

Protecting yourself from online fraud

Benefits Increase as The Demand for Pilots Grow

Thinking of Cosigning A Private Student Loan? Here are five things you should know!

We Need Pilots: Travel Demand Skyrockets From Regional Airlines

5 tips for building your FICO score to apply for Stratus loans!

Managing Student Loan Debt

Understanding Interest and Capitalization

What is a credit report and why is it important when applying for Stratus Loans?

A guide on how to formulate a plan based on borrowing and repaying

Understanding Private Student Loans and How Stratus Can Help You!

Managing Your Student Loan Tax Benefits and Forms To Save You Money

You Just Closed On Your Loan or Thinking About Closing On Your Loan With Stratus: How to Pay it Off FAST

Student Pilot Financial Basics: Start Here to Understand Financing Your Student Pilot Loans

How Stratus Works With Flight Schools to Achieve Their Students’ Aviation Dreams

Six Opportunities Await You If You Become a Pilot in the US

Federal Reserve Rate Increase Explained and How You As A Student Will Be Affected

A Quick Guide on the Types of Pilot Certifications in the US

You need this CREDIT SCORE to get approved for a private student loan

School Partnerships at Stratus

Student Loans – What You Need To Know