The Department of Education announced Tuesday that federal student loan interest rates for the 2024-2025 school year hit 6.53 percent, up from 5.5 percent the previous year.
Higher education expert Mark Kantrowitz told CNBC the new undergraduate interest rate is the highest it has been in a decade.
Graduate student loans hit 8.08 percent, up from 7.05 percent the previous year and the highest in 20 years, Kantrowitz said. Parent plus loans have earned the highest interest rate at 9.08 percent, beating the 8.05 percent from before.
President Biden has made easing the burden of student loans a priority in his presidency.
The administration has forgiven billions of dollars of student loans and made changes to income-driven repayment plans to help borrowers out of debt.
Republicans have railed against Biden’s efforts and have run on the message that debt forgiveness is unfair to those who never went to school or already paid off their loans.
