Federal Student Loan Interest Rates Hit 12-Year High as Undergraduates Face More Than 6.5% Interest from sis face shave Watch Video

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✓ Published: 16-May-2024
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The interest rate on new federal student loans for undergraduates during the upcoming academic year will be more than 6.5%, the highest in 12 years. Graduate students will see more than 8% interest rate increases, and PLUS loans will have an interest rate above 9%. The higher rates are based on the 10-year Treasury note auction held every May and are expected given the Federal Reserve's high benchmark interest rate. Biden is working on new proposals to cancel up to $20,000 in debt for borrowers whose balances grew due to unpaid interest.

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