Federal student loan interest rates to increase in July

(KYMA, KECY/ CNN) - While there has been a lot of talk about lowering student loan debt, the reality is college is getting more expensive this summer.

Interest rates on federal student loans will rise by more than a percentage point due to action taken by the Treasury Department.

That means college students will face the biggest percentage jump in the cost of financing their education since 2013.

The higher rates only apply to loans taken out to pay the 2022 to 2023 academic year and do not apply to existing student debt.

Grad students are expected to take the brunt of the cost because of the higher amounts of debt they typically take on.

The rate hike comes at a time when many college students are already grappling with the highest inflation they've seen in their young lives.