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Federal Direct Student Loan Interest Rates

Per legislation signed into law by President Obama in August 2013, interest rates for Federal Direct loans will now be calculated on a year-by-year basis using the following formula: The current 10-Year Treasury Note index rate will be used, in combination with an add-on amount determined by Congress. Each loan will have a rate cap should the Treasury Note index increase in subsequent years.

2014-2015 Academic Year Interest Rates

The chart below reflects the interest rates established by Congress for Direct Loans made on or after July 1, 2014, and before July 1, 2015.

Loan Type Student Grade Level 10-Year Treasury Note Index Rate Add-On 2014-2015 Fixed Interest Rate
Direct Subsidized Loans Undergraduate Students 1.81% 2.85% 4.66%
Direct Unsubsidized Loans Undergraduate Students 1.81% 2.85% 4.66%
Direct Unsubsidized Loans Graduate Students 1.81% 4.40% 6.21%
Direct PLUS Loans Parents of Undergraduate Dependent Students and Graduate/Professional Students 1.81% 5.40% 7.21%

The interest rate caps for each loans are listed in the below chart:

Loan Type Student Grade Level Interest Rate Caps
Direct Subsidized Loans Undergraduate Students 8.25%
Direct Unsubsidized Loans Undergraduate Students 8.25%
Direct Unsubsidized Loans Graduate Students 9.50%
Direct PLUS Loans Parents of Undergraduate Dependent Students and Graduate/Professional Students 10.50%

2013-2014 Academic Year Interest Rates

The chart below reflects the interest rates established by Congress for Direct Loans made on or after July 1, 2013, and before July 1, 2014.

Loan Type Student Grade Level 10-Year Treasury Note Index Rate Add-On 2013-2014 Fixed Interest Rate
Direct Subsidized Loans Undergraduate Students 1.81% 2.05% 3.86%
Direct Unsubsidized Loans Undergraduate Students 1.81% 2.05% 3.86%
Direct Unsubsidized Loans Graduate Students 1.81% 3.60% 5.41%
Direct PLUS Loans Parents of Undergraduate Dependent Students and Graduate/Professional Students 1.81% 4.60% 6.41%

The interest rate caps for each loans are listed in the below chart:

Loan Type Student Grade Level Interest Rate Caps
Direct Subsidized Loans Undergraduate Students 8.25%
Direct Unsubsidized Loans Undergraduate Students 8.25%
Direct Unsubsidized Loans Graduate Students 9.50%
Direct PLUS Loans Parents of Undergraduate Dependent Students and Graduate/Professional Students 10.50%