Federal student loan rates are fixed and set by a formula created by Congress that changes annually. Private student loan rates change more often and can be fixed or variable. Rates are based on lender preferences,

Student loan interest rates for 2025 remain painfully high, adding pressure for borrowers already facing rising college costs and stalled forgiveness programs.

Paying back student loans can be a long process that impacts your finances for many years. Add to that interest rates, which can make payments even higher and the loan more difficult to pay off during tough times or inflation.