diff --git a/package.json b/package.json
index 95818fd36beb..250da4b0842b 100644
--- a/package.json
+++ b/package.json
@@ -6,7 +6,7 @@
     "@edx/paragon": "^0.2.0",
     "@edx/studio-frontend": "^0.3.0",
     "babel-core": "^6.23.0",
-    "babel-loader": "^6.4.0",
+    "babel-loader": "^7.1.0",
     "babel-plugin-transform-class-properties": "^6.24.1",
     "babel-plugin-transform-object-rest-spread": "^6.26.0",
     "babel-preset-env": "^1.2.1",