Student loan rate hikes on Wednesday for new home loans and student loans for first time since November 8 will make them more expensive for borrowers, according to a report by Credit Suisse.
The report said the average interest rate for student loans will increase by 5.8 per cent to 3.25 per cent in the first year, and 4.5 per cent over the course of 10 years.
The annual interest rate hike for home loans will rise to 2.95 per cent from 2 per cent, and by 4 per cent for student debt.
The average annual rate hike of home loans for students will be 1.85 per cent.
The report said it was not clear how the interest rates will impact the average annual payments on student loans.
The first year of interest rates increases for new loans will be 3.5 times more expensive than the average.
In the second year, the average increase will be 2.25 times more than the median.
The latest report on the average cost of student loans is from the credit ratings agency.