The interest rate on student loans varies depending on the type of loan and whether it is a federal or private loan. Federal student loans have a fixed interest rate, which means the rate will remain the same for the entire loan term. The interest rates for federal student loans are set once a year by Congress and are based on the 10-year Treasury note. As of November 2023, the interest rate for Direct Subsidized Loans and Subsidized Federal Stafford Loans for undergraduate borrowers is 4.99% for loans disbursed between July 1, 2022, and June 30, 2023. For graduate students, the interest rates for unsubsidized loans or Direct PLUS loans are 7.05% or 8.05%, respectively. Private student loans, on the other hand, offer fixed or variable interest rates, which can range from just below 4% up to nearly 15%, depending on the lender and the borrowers credit score.