The U.S. Department of the Treasury is set to raise federal student loan interest rates in July, Money magazine reported Wednesday. The move had been expected after the Federal Reserve increased benchmark interest rates in recent months.

New undergraduate federal loans will have an interest rate of 4.45 percent during the upcoming academic year, up from a historically low rate of 3.76 percent. The rate for graduate student loans will be 6 percent, up from 5.31 percent. Parent PLUS loans will have a rate of 7 percent, up from 6.31 percent.