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The agency responsible for setting interest rates on loans is the Federal Reserve Board. The interest rate on loans is tied into the rate of inflation and the GNP or Gross National Product.
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Does the federal government influence interest rates?
The Federal Reserve, which is a part of the federal government, sets the Prime Rate, which is a rate which banks loan to each other and also the rate at which banks can borrow from the federal government. This prime rate, in turn, affects the interest rates which consumers pay for loans.
Student Loan Rates?
Student loans have historically had some of the lowest interest rates in the country. It is usually cheaper to borrow money for college than for any other purpose, including buying a house. The interest rates charged on student loans vary by the type of loan, whether or not the student is in school, and whether the student is a graduate or undergraduate student. The interest rates also change from time to time.Stafford LoansStafford loans usually have the lowest interest rate of all student loans. The interest rate charge on all Stafford loans changes on July 1 of each year. The rate is based off of the yield of the one-year constant Treasury Bill for the week that ended on or near June 26 of the same year. The interest rate for Subsidized Stafford Loans is usually slightly less than that for Unsubsidized Stafford Loans. There is no difference between the in-school and repayment interest rates. The current interest rate for Stafford loans is 6.80 percent.PLUS LoansThe interest rate for all PLUS loans is always higher than that of Subsidized Stafford Loans. It usually runs about one percentage point higher. The rate also changes on July 1 every year and is calculated on the same basis as that of Stafford Loans. There is no difference between the in-school and repayment interest rates.Perkins LoansPerkins Loans currently have an interest rate of five percent. This rate rarely changes. Sometimes it is higher than that charged by Stafford loans, and sometimes it is less. Interest is not charged while the borrower remains in school, so the rate applies to the repayment period only.Private LoansUnlike federal student loans, the interest rates charged on private student loans are not regulated by law. The interest rate on these loans can range anywhere from two percent to fifteen percent. Each bank sets its own rate or rates. The interest rate charged on any particular loan often depends on the borrower's credit rating. Some banks charge a different interest while the student is in school and some do not.
Does the president has the authority to set interest rates?
The President approves laws. The President does not create laws. The US Federal Reserve sets the interest rate.
Are any private student loans still considered government loans?
No, by definition, private student loans are not government student loans. Federal student loans are guaranteed by the US, govt, and the govt sets the interest rates and determine the policies around loan limits and repayment. Private student loans are provided by banks, credit unions and other financial institutions such as Sallie Mae. Because they are not guaranteed, they are much higher risk to the lenders, so they are typically credit based. This means interest rates are variable, and determined by the borrower's credit history. Because most student's haven't had a change to acquire good credit, having a co-signer with good credit almost always improves the interest rate. Banks don't have any collateral for student loans.
How is the current interest rate determined?
Many factors effect the interest rates. The Federal Reserve through the FOMC sets the discount rate. Market participants who buy and sell bonds also set the interest paid by such bonds and other fixed income instruments.
Who sets the bank mortgage interest rate?
Contrary to popular belief, banks do not fully control the interest rates for mortgages. It is in fact the Federal Reserve that is responsible for setting and changing the interest rates that you pay.
What are the component of saving?
Components of saving include the interest rate and the principle amount. The bank also sets how many times they will compound the money.
Who sets interest rates in the European monetary union?
"My mum sets the interest rates." Richard O'Regan.
Who is the agency that sets and monitors standards for city water?
Environmental Protection Agency
What happens when a bank writes off a debt?
The debt is simply deducted from the bank's assets. The bank sets its own interest rates for lenders, and any debts they write off is balanced by an increase in the interest rate.
What are the means by which the Federal Reserve System effects the Discount Rate?
The FOMC sets targets for the Discount Rate. By trading securities, the Federal Reserve Bank of New York, it affects the Federal Funds Rate which is the interest rate by which banks lend to each other overnight.
Which government agency sets wage standards?
Department of Labor
