U.S. Education Secretary Rod Paige has reported that federal student loan interest rates dropped to a historic low of 3.42% as of July 1. With the new interest rates, which are down from 4.06%, students who borrow $10,000 and follow a 10-year standard repayment plan can save approximately $362 in interest over the life of the loan.

According to Page, "These new loan rates will mean significant savings for borrowers and will help make higher education more affordable for all students..."

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