US undergrads reportedly face nearly 20% increase in interest for student loans

- Higher education just got more expensive.

The Department of Treasury announced Wednesday that, beginning in July, interest on new government loans will rise by .69 percent, which could add up to a 20 percent increase in interest, Bloomberg reported.

The report said that the increase would mean an increase of about $400 on a $10,000 loan.

In March, new analysis of government data by the Consumer Federation of America found that the number of Americans in default on their student loans jumped by nearly 17 percent last year.

As of the end of 2016, there were 4.2 million Federal Direct Loan borrowers in default, meaning they've not made a payment in more than 270 days. That's up from 3.6 million at the end of 2015.

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