Student loan interest rates take a leap. What borrowers should do

All federal education loans issued after July 1, 2018, will be subject to the new rates.

Don’t worry about loans you’ve taken out for previous academic years: Federal student loan rates are fixed, and the rates on those existing loans won’t change.

(Sorry, families: You can’t try to evade the rate increase by borrowing ahead of that deadline. Loans for the 2018-19 academic year must be taken out after July 1.)

Still, just half of students and parents know that students aren’t guaranteed the same interest rate on the federal student loans they borrow each year, according to a recent report by online loan marketplace Credible.com.

“People go back each year and the rate can change,” said Stephen Dash, CEO at Credible. “People should be particularly aware of that given the rising interest rate environment.”

The rate changes apply only to federal student loans. Private loans come with their own — often higher — interest rates.