Answer: 4.45% for federal direct student loans effective July 1, 2017 (up from 3.76% for 2016-17 school year).
Why the increase? Student loan interest rates are now tied to the 10 Year Treasury Bond interest rate.
New undergraduate loans from the Department of Education are due to carry an interest rate of 4.45 percent, up from 3.76 percent for the academic year ending in June. Rates on some graduate loans are set to rise from 5.31 percent to 6 percent, while rates on loans to parents and guardians are due to experience a jump from 6.31 percent to 7 percent.
Question for students: