The interest rate on new federal student loans for undergraduates during the upcoming academic year will be more than 6.5%, the highest in 12 years. Graduate students will see more than 8% interest rate increases, and PLUS loans will have an interest rate above 9%. The higher rates are based on the 10-year Treasury note auction held every May and are expected given the Federal Reserve's high benchmark interest rate. Biden is working on new proposals to cancel up to $20,000 in debt for borrowers whose balances grew due to unpaid interest.
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00:00 It's Benzinga and here's what's on the block.
00:02 The interest rate on new federal student loans for undergraduates during the upcoming academic
00:07 year will be more than 6.5% the highest in 12 years. Graduate students will see more than 8%
00:13 interest rate increases and plus loans will have an interest rate above 9%. The higher rates are
00:18 based on the 10-year Treasury note auction held every May and are expected given the Federal
00:22 Reserve's high benchmark interest rate. Biden is working on a new proposal to cancel up to
00:27 $20,000 in debt for borrowers whose balances grew due to unpaid interest. For all things money visit
00:33 Benzinga.com