Federal Student Loan Interest Rates Reach Highest Levels in Over a Decade

New rates for the 2024-2025 academic year will significantly impact borrowers, with undergraduate rates at 6.53% and graduate rates at 8.08%.

The Department of Education announced the new rates, which take effect on loans issued after July 1, 2024.
Undergraduate loans will have a 6.53% interest rate, the highest in over a decade.
Graduate and Parent PLUS loans will see rates of 8.08% and 9.08%, respectively, the highest in over 20 years.
The increase is driven by higher yields on 10-year Treasurys due to inflation concerns and Federal Reserve rate hikes.
The Biden administration's debt relief measures and income-driven repayment plans aim to mitigate the impact on borrowers.