The Department of Education announced Tuesday that federal student loan interest rates for the 2024-2025 school year have reached 6.53%, up from 5.5% the previous year.
Higher education expert Mark Kantrowitz told CNBC the new undergraduate interest rate is the highest in a decade.
Graduate student loans reached 8.08%, up from 7.05% the previous year and the highest in 20 years, Kantrowitz said. The parent company’s loans received the highest interest rate, at 9.08%, surpassing the previous 8.05%.
President Biden has made reducing the student loan burden a priority of his presidency.
The administration has forgiven billions of dollars in student loans and made changes to income-based repayment plans to help borrowers pay off debt.
Republicans have criticized Biden’s efforts and delivered the message that debt forgiveness is unfair to those who never went to school or who have already paid off their loans.
This story originally appeared on thehill.com read the full story
