Interest Rates on Federal Student Loans Will Rise Later This Year
By:
Sarah Hansen
Sarah Hansen
Senior Writer | Joined October 2021
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Interest rates on new federal student loans are rising again this year, which means it will be even more expensive to borrow money for college.
Undergraduate loans will now carry a rate of 5.50%, up from 4.99% last year. Graduate student direct loans will have a 7.05% interest rate, up from 6.54% last year. PLUS loans for both parents and graduate students will carry a rate of 8.05%, up from 7.54%.
These rates are tied to the interest rate on the 10-year Treasury note, determined by an auction on Wednesday. The new rates will go into effect on July 1 and will apply to loans issued for the 2023-2024 academic year.
