New student loan borrowers are about to pay more starting in July when the federal government increases interest rates.

The rates on federal student loans will increase .69 percentage points across a slew of loan products for the 2017-2018 school year.

Individuals who take out loans between July 1, 2017 and June 30, 2018 will pay 4.45% interest on undergraduate direct subsidized and unsubsidized loans, up from the current rate of 3.76%. Subsidized loans do not accrue interest while borrowers are in school or the loans are in deferment, while unsubsidized loans begin accruing interest right away.

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Source:: BusinessInsider.Com