(WTVY) - Student loan payments will increase soon.
Starting in July, interest rates will rise on new federal student loans borrowed for the 2017-2018 school year.
Right now, the interest rate for undergrad students is 3.76 percent. It will increase to 4.45 percent for the 2017-2018 school year.
Grad student rates are currently 5.31 percent. Those will go up to 6 percent.
Students using PLUS loans will increase from 6.31 percent to 7 percent.
That adds up to about $1,000 more in payments.
This is the first increase on federal student loans since 2014.
Interest rates will not change for those with existing loans, and the increase will not apply to private student loans.