Interest Rate for new Direct Loans

Congress has passed and the President has signed the Bipartisan Student Loan Certainty Act of 2013, which ties federal student loan interest rates to financial markets. Under this Act, interest rates will be determined each June for new loans being made for the upcoming award year, which runs from July 1 to the following June 30. Each loan will have a fixed interest rate for the life of the loan.

The following table provides the interest rates for new Direct Loans made on or after July 1, 2013, and before July 1, 2014. These rates will apply to all new Direct Loans made during this time, even loans already disbursed before the passage of the Act. 

Loan

Interest Rate

Direct Subsidized Loans (Undergraduates)

3.86%

Direct Unsubsidized Loans (Undergraduates)

3.86%

Direct Unsubsidized Loans (Graduate or Professional Students)

5.41%

Direct PLUS Loans (Parents and Graduate or Professional Students)

6.41%

 

Learn about interest rates and fees associated with federal student loans.