How to get lower interest rates on student loans

Federal student loan interest rates are set to reach record heights for the 2024-25 school year

Piggy bank wearing a graduation mortar board cap standing on top a pile of money
Effective July 1, undergraduate direct loans will have a 6.53% interest rate, up from 5.50%, while graduate and professional direct loans are up to 8.08% from 7.05%
(Image credit: Brian A Jackson / Getty Images)

As if student debt wasn't already crippling enough, interest rates on federal loans are set to jump higher. In fact, "federal student loan interest rates will reach record heights for the 2024-25 school year," said NerdWallet, citing a recent announcement from the Department of Education.

Effective July 1 for the 2024-25 school year, "undergraduate direct loans will have a 6.53% interest rate, up from 5.50%," said NerdWallet. Meanwhile, "graduate and professional direct loans will have an 8.08% interest rate, up from 7.05%."

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Becca Stanek, The Week US

Becca Stanek has worked as an editor and writer in the personal finance space since 2017. She previously served as a deputy editor and later a managing editor overseeing investing and savings content at LendingTree and as an editor at the financial startup SmartAsset, where she focused on retirement- and financial-adviser-related content. Before that, Becca was a staff writer at The Week, primarily contributing to Speed Reads.