Federal student loan interest rate increases for the 2024-2025 school year
(NBC, KYMA/KECY) - Student loan interest rates are on the rise, and it is the biggest jump in at least a decade.
On Tuesday the U.S. Department of Education said federal undergraduate loans will be 6.53% for the 2024-2025 school year. This year, the rate was 5.5%.
Graduate students can expect an interest rate of 8.08%, compared to the current 7.05%. In addition, for graduate students and parents, the rate goes to 9.08%, an increase from 8.05%.
Such rates are determined once a year, and based in part on the may auction of the 10-year treasury note.
The Treasury yield has climbed while the federal reserve has kept interest rates high until inflation comes down.
