Question of the Day: What's the new interest rate on federal student loans for the 2024-25 school year?
It was 5.5% for the 2023-24 school year...what's your best guess for this school year?
Answer: 6.53%
Federal interest rates are up a full percentage point for undergraduate students, compared to last year.
Questions:
- How do you think this interest rate compares to the interest charged on credit card debt?
- Average student debt is around $30,000 for college graduates. Use this calculator to find out how much interest would be paid on that loan with a 10-year term.
- High interest rates increase the overall cost of paying for college with student loans. Hypothesize: what is one possible broader impact of high interest rates?
Click here for the ready-to-go slides for this Question of the Day that you can use with your students.
Behind the numbers (Nerdwallet):
"Since 2006, all federal student loans have had fixed interest rates. Undergraduate direct loan interest rates haven’t been this high in 16 years, since the 2008-09 academic year. (The standing record is 6.8%, for loans disbursed between 2006 and 2008.) Interest rates on direct graduate loans and PLUS loans have never been this high."
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Learn to manage student debt while balancing other tradeoffs in NGPF's award-winning PAYBACK game in the NGPF Arcade. Played more than 3.1 million times!
About the Author
Kathryn Dawson
Kathryn (she/her) is excited to join the NGPF team after 9 years of experience in education as a mentor, tutor, and special education teacher. She is a graduate of Cornell University with a degree in policy analysis and management and has a master's degree in education from Brooklyn College. Kathryn is looking forward to bringing her passion for accessibility and educational justice into curriculum design at NGPF. During her free time, Kathryn loves embarking on cooking projects, walking around her Seattle neighborhood with her dog, or lounging in a hammock with a book.
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