Federal student loan rates jump nearly 1% in July: How to make the most of your options By Kelsey Ramirez Interest rates on federal student loans rise for the upcoming school year. Here are your options. (iStock) Interest rates on federal student loans increased by more than two percentage points at the beginning of July, jumping from 3.71% last school year to 3.73%. Federal loan rates are fixed, and each year the loans have a new fixed rate, resetting on the first of July. Parents and students have several options available to them when determining how to pay for the school year ahead.