New Direct Loan Interest Rates

Tuesday, August 13th, 2013

Due to the Bipartisan Student Loan Certainty Act of 2013 signed by President Obama on August 9, 2013, the interest rates have been revised for the Federal Direct Subsidized Loans, Federal Direct Unsubsidized Loans, and Federal Direct PLUS Loan (Parent Loan for Undergraduate Students) with a first disbursement on or after July 1, 2013 through June 30, 2014. The interest rates will be the sum of a uniform “index rate” of the 10-Year Treasury note (T-note) index plus an “add-on” that varies depending on the type of loan. Once established, the interest rates will apply for the life of the loan.

Established Interest Rates for Undergraduates the 2013-2014 Academic Year:

  • Federal Direct Subsidized Loans fixed at 3.86% (1.81% T-note and 2.05% add-on with interest rate cap at 8.25%)
  • Federal Direct Unsubsidized Loans fixed at 3.86% (1.81% T-note and 2.05% add-on with interest rate cap at 8.25%)
  • Federal Direct PLUS Loans fixed at 6.41% (1.81% T-note and 4.6% add-on with interest rate cap at 10.50%)

For graduate/professional students Federal Direct Unsubsidized Loans, established interest rate is fixed at 5.41% (1.81% T-note and 3.60% add-on with interest rate cap at 9.50%).