Education Dept. announces highest federal student loan interest rate in more than a decade [View all]
Source: cnbc
Published Tue, May 14 2024 1:49 PM EDT Updated 10 Min Ago
The U.S. Department of Education announced on Tuesday the interest rates on federal student loans for the 2024-2025 academic year.
The interest rate on federal direct undergraduate loans will be 6.53%. That’s the highest rate in at least a decade, according to higher education expert Mark Kantrowitz. The undergraduate rate for the 2023-2024 year is 5.5%.
For graduate students, loans will come with a 8.08% interest rate, compared to the current 7.05%. Plus loans for graduate students and parents will have a 9.08% interest rate, an increase from 8.05% now. Both of those rates haven’t been as high in over 20 years, Kantrowitz said.
The rise in interest rates could complicate the Biden administration’s efforts to get the student loan crisis under control and relieve borrowers of the pain of interest accrual, experts say. Even as millions of people have benefited from recent debt relief measures, new students will be saddled with more expensive loans for decades to come.
Read more: https://www.cnbc.com/2024/05/14/education-dept-announces-2024-25-interest-rates-on-student-loans.html
Link to Federal Student Aid (FSA) ANNOUNCEMENT - (DL-24-03) Interest Rates for Direct Loans First Disbursed Between July 1, 2024 and June 30, 2025
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