Signs that inflation is easing have reignited hopes that the Federal Reserve Board will reduce interest rates as early as this summer. But even if that happens, the rate cut will come too late for thousands of college students and their families.
The interest rate for federal undergraduate student loans disbursed between July 1, 2024, and June 30, 2025, will be 6.53%, the highest rate in 16 years. The rate for federal Parent PLUS loans, which parents can take out to cover the cost of a child’s college attendance, will jump to 9.08%, a 33-year high.
