Federal Student Loan Interest Rates Reached Decade High, Signaling Financial Impact on Borrowers

Tuesday, 14 May 2024, 18:43
In the 2024-2025 school year, federal student loan interest rates climbed to 6.53 percent, the highest in over a decade, affecting undergraduates, graduates, and parents. Higher education expert Mark Kantrowitz highlighted the significant spike, with graduate loans reaching 8.08 percent and parent plus loans hitting 9.08 percent. President Biden's efforts to ease student loan burdens through forgiveness and repayment plan changes have been met with opposition from Republicans, who argue against debt forgiveness policies.
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Federal Student Loan Interest Rates Reached Decade High, Signaling Financial Impact on Borrowers

Federal Student Loan Interest Rates Soar

The Department of Education announced that federal student loan interest rates for the 2024-2025 school year soared to 6.53 percent, up from 5.5 percent the previous year. Higher education expert Mark Kantrowitz revealed that it's the highest undergraduate rate in a decade.

Record-High Rates

  • Graduate student loans surged to 8.08 percent, while parent plus loans hit 9.08 percent.

President Biden aims to alleviate loan burdens through forgiveness and plan modifications, drawing criticism from Republicans.

Impact: 6

This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.

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