Federal Student Loan Interest Rates to Reach 12-Year High, New Data Shows

New rates will apply to all federal education loans issued on or after July 1, 2024.

Students study in the Perry-Castaneda Library at the University of Texas at Austin, on February 22, 2024. Brandon Bell/Getty Images

The interest rate on new federal student loans for undergraduates during the upcoming 2024-25 school year is set to be the highest in 12 years following the U.S. Treasury Department’s 10-year note auction in May, according to new data from the Department of Education.

The interest rate on federal direct undergraduate loans will be 6.53 percent as of this year, up from 5.5 percent for the current 2023-2024 year, data published on Tuesday shows.