When it comes to college, tuition costs rising, and so are the interest rates on the loans to cover the tab.
Earlier this month, interest rates rose on new federal loans for the coming year. For new loans disbursed from July 1, 2017, to June 30, 2018, undergraduates will pay 4.45 percent. That's an increase from this year's rate of 3.76 percent.
And the private student loan market, which is already a more expensive way to borrow, is also edging higher. Both variable and fixed interest rates on private student loans rose nearly a point over the last year, according to a recent report by LendEDU, an online marketplace for student loans and student loan refinancing.
The average variable rate on a private student loan is now 7.81 percent, while the average fixed rate stands at 9.66 percent, LendEDU said. (See chart below.)