As of June 2025, the best interest rates on private student loans started around 3.19% for fixed-rate loans and between 4% and 5% for variable-rate loans. For federal student loans, rates in recent years have ranged from 2.75% to 6.54% for undergraduate borrowers. For the 2025-2026 school year, rates on undergraduate loans are set at 6.39%.

Mortgage rates are down and still under 7%. Today’s national average on a 30-year fixed-rate mortgage is 6.75%, according to Bankrate. If you choose a 15-year fixed-rate mortgage, the average rate is 6.

Overall, the change will see borrowers being charged more than $27 billion in interest over the next 12 months.

Interest is set to begin accruing for the 8 million borrowers enrolled in former President Joe Biden's SAVE repayment plan, which courts paused.

Education Secretary Linda McMahon, in a statement, urged "all borrowers in the SAVE Plan to quickly transition" to a different loan program.