Federal student loans will soon be pricier.
The government sets annual interest rates on student loans once a year. The percentage is based on the 10-year Treasury note, which has been on the rise, including recently hitting 3 percent.
Although the Department of Education hasn't formally announced the new rates, this year's bump is likely to be higher than expected, said Mark Kantrowitz, a student loan expert.
"How investors feel about the economy has an impact on what the rates are, and there's a lot of chaos going on," Kantrowitz said, pointing to talk of tariffs and President Donald Trump's announcement that the U.S. is pulling out of the Iran nuclear deal.
"It just happens to be bad timing from the point of view of the interest rates on student loans."
Here's what borrowers need to know: