Some private student loans could get cheaper as the Federal Reserve cut interest rates for the first time since last year on Wednesday.

Why It Matters

An estimated 43 million Americans have student loan debt totaling $1.8 trillion, according to the Education Data Initiative. The interest rate cut could give some—but not all—of those borrowers relief amid ongoing economic concerns about the cost of living and tariffs.

The Federal Reserve has been hesitant to make large cuts to the interest rate in the years following the COVID-19 pandemic, which caused a global rise in inflation and economic slowdown.

What To Know

The Federal Reserve cut rates from 4.5 percent to 4.25 percent on Wednesday, the first cut since December 2024.

"In support of its goals and in light of the shift in the b

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