If you are taking out a student loan after July 1, you will be paying more interest.
The interest rate on federal undergraduate loans will be 6.53 percent for the 2024-2025 school year. The previous rate was 5.50 percent. For graduate students, interest rates will be 8.08 percent, up from 7.05 percent. PLUS loan interest rates will rise to 9.08 percent, up from 8.05 percent.
Student loan interest rates are set every year based on the yield of the 10-year Treasury note, which is auctioned in May., according to Money.com.
