This piece was originally published at Forbes.
It’s no secret that interest rates are rising.
That includes the cost of college and graduate school as well. That’s one reason that college and graduate school are about to get more expensive.
Here’s what you need to know.
Undergraduate Student Loans
Interest rates for federal undergraduate student loans will rise from 4.45% to 5.05% – an increase of 0.60 percentage points, or 13.5% – starting July 1 for the 2018-2019 school year.
Graduate Student Loans
Graduate students will also pay more for school. The cost for a federal direct unsubsidized graduate student loan will rise from 6.00% to 6.60% – a 10% increase.
PLUS Loans
PLUS Loans, which both graduate students and parents of undergraduate students can use, will rise from 7.00% to 7.60% – an 8.6% increase.
The Financial Impact
Each year, Congress sets the fixed interest rates for federal student loans. This rate is based on the May auction of U.S. Treasury notes, and applies only to federal student loans disbursed from July 1, 2018 – June 30, 2019. This is the second consecutive year that rates have increased.