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.
VIDEO: HOW DO STUDENTS SPEND THE MONEY?
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.
"Despite all improvements in the economy, student loan borrowers are still struggling," Rohit Chopra, senior fellow at the Consumer Federation of America and formerly the Consumer Financial Protection Bureau's Student Loan Ombudsman, said at the time.
The Associated Press contributed to this report
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