By Lynne Adkins

by Lynne Adkins

PHILADELPHIA (CBS) — If you’re taking out federal student loans, it’s now cheaper than it was even days ago.

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There’s good news for college students needing federal student loans, Mike Falco, of Falco Wealth Management in Berwyn says the interest rate has dropped, so you’ll be paying back less.

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“As of July 1st, any loans taken out July 1st or later, the rate will go down a little more than a half a percent, actually .53-percent. That’s because Congress passed a bill tying the interest rate to the 10 year treasury note,” said Falco.

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He says the rate reduction could save you thousands. A student taking out a $25,000 loan will save about $37 a month and the rates are locked in for the life of the loan.