Emergency Notification: COVID-19

COVID-19 Information: Health Advisories; Adapt Plan: Repopulation of Campus.

Loan Interest Rates

Due to the COVID-19 pandemic, the Department of Education is reducing interest rates to 0% and suspending payments on all Federal Direct Stafford Loans. All students are qualifying for this automatically. The suspension started back on March 13, 2020 and will stay in this status until September 30, 2020. Loans include:

  • Parent PLUS
  • Grad PLUS
  • Subsidized and Unsubsidized Federal Direct Stafford loans  
  • Does not include Perkins, Private, or any older FFEL type loans

For more information, see the Coronavirus and Forbearance Loan Information announcement and Who's My Loan Servicer? on the Federal Student Aid website. You will find a detailed FAQ for more specific questions.


 2020-2021 Interest Rates

Loans first disbursed on, or after July 1, 2020, and prior to July 1, 2021:

  • Subsidized/Unsubsidized Loan (Undergraduate Students): 2.75%
  • Unsubsidized Loan (Graduate/Professional Students): 4.30%
  • PLUS Loan (Parent, and Graduate/Professional students): 5.30% 

2019-2020 Interest Rates

Loans first disbursed on, or after July 1, 2019, and prior to July 1, 2020:

  • Subsidized/Unsubsidized Loan (Undergraduate Students): 4.53%
  • Unsubsidized Loan (Graduate/Professional Students): 6.08%
  • PLUS Loan (Parent, and Graduate/Professional students): 7.08% 

How Interest Rates are Determined

Federal student loan interest rates are established each year. 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

Interest Rates and Rate Accrual

The following table compares interest rates and rate accrual for a $10,000 loan for the 2020-21 school year:

Type of Loan Interest Rates for 2020-21 Academic Year Daily Accrual while in school Daily Accrual after 6-month grace period
Federal Direct Stafford Subsidized 2.75%* *$0 $0.75 per day
Federal Direct Stafford Unsubsidized (Undergrad) 2.75% $1.24 per day $0.75 per day
Federal Direct Stafford Unsubsidized (Graduate) 4.30% $1.17 per day $1.17 per day
Federal Direct PLUS (Graduate or Parent) 5.30% $1.45 per day $1.45 per day
Alternative Loan Varies by credit from 4.0% - 15.0% $1.09 - $4.10 per day $1.09 - $4.10 per day

*Subsidized loans do not accrue interest while student is enrolled at least half time or during the 6-month grace period after graduation.

For more information about federal loans, visit the Federal Student Aid website.