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Interest Rates for New Direct Loans

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

The following table provides the fixed interest rates for new Direct Loans first disbursed on or after July 1, 2016, and before July 1, 2017. The 2016–17 rates represent a decrease of one-half of a percentage point from the 2015–16 interest rates on Direct Loans. These rates will apply to new Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct PLUS Loans made during this time.



Interest Rate

Direct Subsidized Loans (Undergraduates)


Direct Unsubsidized Loans (Undergraduates)


Direct Unsubsidized Loans (Graduate or Professional Students)


Direct PLUS Loans (Parents and Graduate or Professional Students)


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