Current Interest Rates on Student Loans in 2024

As of 2024, the interest rates on student loans in the United States vary depending on the type of loan. Federal student loans, which are offered by the U.S. Department of Education, generally have lower interest rates compared to private loans. For undergraduate students, the interest rate for Direct Subsidized and Direct Unsubsidized Loans is 5.50% for the 2023-2024 academic year. For graduate students, the rate for Direct Unsubsidized Loans is 6.50%. Parent PLUS Loans, which are available to parents of dependent undergraduates, have a rate of 7.54%. Private student loan rates can vary significantly based on the lender, credit score, and the borrower's financial situation. It is crucial for students and their families to shop around and compare different loan options to find the most favorable terms. Interest rates for private loans can range from around 4% to over 12%, depending on various factors. It’s important to also consider the type of interest—fixed or variable—when evaluating private loans.