Analysis projects that a typical borrower will be forced to pay more than $3,500 per year, or $300 per month, as interest resumes.

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%.

The Department of Education will resume student loan interest payments on Aug. 1, slamming President Biden for using loan forgiveness to sway votes.

The federal cap on the amounts people can borrow means some of them will fall short. That’s especially true for students in professional schools.