_federal-student-loan-interest-rates-hit-12-year-high-as-undergraduates-face-more-than-6-5-interest.jpg "Federal Student Loan Interest Rates Hit 12-Year High as Undergraduates Face More Than 6.5% Interest from graduate Video Screenshot Preview")
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✓ Published: 16-May-2024
👁 View: 1.8M times
✓ Published: 16-May-2024
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The interest rate on new federal student loans for undergraduates during the upcoming academic year will be more than 6.5%, the highest in 12 years. Graduate students will see more than 8% interest rate increases, and PLUS loans will have an interest rate above 9%. The higher rates are based on the 10-year Treasury note auction held every May and are expected given the Federal Reserve's high benchmark interest rate. Biden is working on new proposals to cancel up to $20,000 in debt for borrowers whose balances grew due to unpaid interest.
The interest rate on new federal student loans for undergraduates during the upcoming academic year will be more than 6.5%, the highest in 12 years. Graduate students will see more than 8% interest rate increases, and PLUS loans will have an interest rate above 9%. The higher rates are based on the 10-year Treasury note auction held every May and are expected given the Federal Reserve's high benchmark interest rate. Biden is working on new proposals to cancel up to $20,000 in debt for borrowers whose balances grew due to unpaid interest.
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