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%.

High mortgage rates can add hundreds of dollars a month in costs for borrowers and reduce their purchasing power.

The SAVE plan and certain other student loan programs will end in July 2028, under the budget bill passed by Congress this month.

Changes to student loans are coming, including the return of interest.

The organization said as a result, “the Trump administration will pass on more than $27 billion in unnecessary costs to working families with student debt in the next 12 months alone.”