Interest Rates

Interest rates are established each year for:

  • Direct Subsidized loan
  • Direct Unsubsidized loan
  • Graduate PLUS and Parent PLUS Loans

All Direct Loans, except Direct Consolidation loans, are "variable-fixed" for each academic year. Each academic year the rate may change, but loans disbursed during that period are fixed for the life of the loan.

Loans disbursed on or after July 1, 2018

The interest rate for federal Direct Loans first disbursed on or after July 1, 2018 will increase from:

  • 4.45% to 5.05% for undergraduate Direct Subsidized/Unsubsidized Loans
  • 6% to 6.60% for graduate/professional Direct Unsubsidized Loans
  • 7% to 7.60% for parent and graduate PLUS loans

There are also interest rate caps:

  • 8.25% for Direct Subsidized loans and Direct Unsubsidized loans for undergraduate students
  • 9.50% for Direct Unsubsidized loans for graduate/professional students. 

The interest rates are calculated using a base 10-year Treasury Note Index of 1.710% plus an add-on amount for each loan program

  • 2.05% for Direct Subsidized loans and Direct Unsubsidized loans for undergraduate students 
  • 3.60% for Direct Unsubsidized loans for graduate/professional students.