Interest rates on student loans to rise

Federal student loan interest rates are set to rise for the 2022-23 academic year, following the U.S. Treasury Department’s 10year note auction.

The new rates will be 4.99% for undergraduate loans, 6.54% for graduate Direct Unsubsidized Loans and 7.54% for PLUS loans. These rates will go into effect on July 1.

Every May, federal student loans are given a new fixed interest rate for the upcoming school year.

These rates are calculated by combining the high yield on the 10-year Treasury note with a fixed congressional premium of 2.05%.