Dive Brief:
- Interest rates for most federal student loans, which are based on Wednesday’s 10-year Treasury note rates, will increase July 1.
- Undergraduate students will now pay a 4.66% interest rate on new loans, up from 3.86%, and graduate students will pay 6.21%, up from 5.41%.
- Additionally, Democrats say they will propose legislation that would allow existing loans to be refinanced at the new rates.
Dive Insight:
In addition, Direct PLUS loans, including Grad PLUS and Parent PLUS, increase to 7.21% from 6.41%. As Inside Higher Ed reports, the new rates are part of legislation passed by Congress last year tying federal student loan interest rates to the government's cost to borrow, according to the final sale of 10-year Treasury notes before June 1.
