Borrowers taking out federal student loans for the first time will likely be paying more in the upcoming academic year.

The interest rate on federal Stafford Loans for undergraduates is set to jump to 4.45% during the 2017 to 2018 school year, up from 3.76% for the 2016 to 2017 year. Graduate students and parents will also see their interest rates rise. The interest rate on Stafford Loans for graduate students is set to increase to 6% from 5.31% during the 2016 to 2017 academic year. The rate on PLUS loans, which are used by both parents and graduate students, are set to rise to 7% from 6.31%.

The cost of taking out a federal student loan goes up from July 1, 2017. The interest rates on new federal student loans change every year and they’re tied to the May 10-year Treasury auction.

The outcome of the Treasury auction is influenced by the Federal Reserve’s approach to interest rates. The historically low interest rate environment over the past few years has been good to student loan borrowers. “The Federal Reserve has been very timid in increasing interest rates so we’ve had several years of relatively low rates,” said Mark Kantrowitz, the publisher of Cappex.com, a college and scholarship search site. “Now that the Federal Reserve is starting to increase interest rates, especially on a more serious level, it’s jumping.”

Despite the jump this upcoming year, federal student loan interest rates will still be at historically low levels, he said. For several years, Congress fixed the federal student loan interest rate at 6.8%, the historical average for student loan rates up until that point, Kantrowitz said.

Borrowers who already have federal student loans don’t have to worry about the rate hike. Federal student loan interest rates are fixed for the life of the loan — so if you took out a loan when the rate was 3.76% that rate remains unchanged. But there’s no way for borrowers who want to take out a new student loan for the upcoming year to access those lower rates.

Still, for now, the rate hike likely won’t make a huge difference in the amount a borrower will repay according to Kantrowitz’s calculations. A borrower who takes out $10,000 — more than the yearly maximum undergraduates can borrow in federal student loans — will pay roughly $3.29 more each month and $394.66 over the 10 year life of the loan, than a borrower who took out the same amount last year.

But it’s likely this won’t be the last student loan rate hike, he said. That means when this year’s college freshmen go to take out loans their senior year they could be looking at a much higher cost. The rate change “increases the cost a little bit and, more importantly, we’re probably now on a rising interest rate trajectory,” Kantrowitz said.