College students may smile a little more after hearing the recent news of even lower federal student loan rates. U-S-A Today reports the rates could fall more than a half of a percentage point, down to three-point-four percent. This rate drop can save parents and students thousands of dollars in interest. However, the savings are not official yet. Rates for short-term treasury bills must not rise this month, for the student loans to drop. Luckily, the Federal Reserve has signaled that the rise of short-term treasury bills is unlikely. These savings are not just for new loans, but also existing loans, which may be consolidated to the lower rate.