The Department of Education announced Tuesday that federal student loan interest rates for the 2024-2025 school year will be 6.53%, up from 5.5% a year ago.
Higher education expert Mark Kantrowitz told CNBC Interest rates on new undergraduates are the highest they’ve been in a decade.
Graduate student loans reached 8.08%, up from 7.05% a year ago and the highest in 20 years, Kantrowitz said. Parent Plus Loan earns him the highest interest rate at 9.08%, higher than his previous 8.05%.
President Biden has made reducing the burden of student loans a priority of his presidency.
The government has forgiven billions of dollars in student loans and changed income-based repayment plans to help borrowers repay their debts.
Republicans have slammed Biden’s efforts, pushing the message that debt forgiveness is unfair to people who are out of school or who have already paid off their loans.
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