But with a 6.87% interest rate (the average student loan interest rate among all existing borrowers) and a 10-year repayment plan, you'd end up paying a total of $40,751 for your student loan.

Monthly payments could drop, but most borrowers will pay more in interest over time. What to expect now that President Trump's "Big Beautiful Bill" is law.

The federal student loan interest rate will be 6.53% for undergraduate students, up from 5.5% for the current year. The interest rate has not been that high on any undergraduate loans since the ...

For federal undergraduate loans, student loans disbursed between July 1, 2025, and June 30, 2026, the interest rate will be 6.39% — down from 6.53% for the 2024-25 school year.

Read more: Compare the Best Student Loan Rates Funds provided by the government for undergraduate degrees are now disbursed with a 6.53 percent interest rate, up from 5.5 percent.

Interest rates have risen since 2020, climbing gradually as the Fed's benchmark federal funds rate went from 0 percent during the early pandemic to the current 5.25 to 5.5 percent range.

Refinance or consolidate your student loan: Most federal student loans may be consolidated into a direct consolidation loan, which could result in you getting a lower interest rate. 4 Private ...

For example, a borrower with $30,000 in federal student loans at a 6.5% interest rate today might pay around $345 per month on a standard 10-year plan, totaling roughly $41,000 paid over the life ...

Congress sets the federal student loan interest rate in May each year. The rates apply to new federal student loans disbursed from July 1 of the current year through June 30 of the following year.

2. Seek out rate discounts Another way to lower your student loan interest rate is through rate discounts. Most lenders will reduce your rate by 0.25 percentage points if you sign up for autopay ...