The Fed raised interest rates for the first time in three years. Here's what it changes for UF students with loans
By Jessica Yang | Oct. 7The Federal Reserve voted unanimously to raise its benchmark interest rate by a quarter of a percentage point Sept. 16, bringing its target range to 3.75% to 4%, the first increase since July 2023. About 91% of U.S. student loan debt is federal, which doesn't change in parallel to interest rate changes. Congress sets the rate once a year and the rate is locked for its life. Federal Direct Loans first disbursed between July 1, 2026, and June 30, 2027, carry a 6.52% interest rate for undergraduates, 8.07% for graduate and professional students and 9.07% for PLUS loans, according to the Department of Education. The Fed’s increase can, however, affect private student loans.









