Federal Direct Loan Interest Rates and Fees

New Federal Direct Loan Interest Rate Information

Congress passed and the President signed the Bipartisan Student Loan Certainty Act of 2013 (BSLCA) link opens in a new window, which ties federal student loan interest rates to financial markets. Under this act, interest rates will be determined each June for new loans made for the upcoming award year, which runs from July 1 to the following June 30. Interest rates are variable based on financial markets annually; however, the interest rate for an individual award year will be fixed for the life of that loan. As a result, the new interest rates make the Federal Direct Loans considered “variable-fixed” loans.

The following table provides interest rates and origination fees for new Direct Loans for the 2017-2018 academic year.

Loan Type

Interest Rate

Origination Fee

Direct Subsidized Loans (undergraduate students)
4.45%
1.073% (between Oct 1, 2016 and Sep 30, 2017)

1.066% (on or after Oct 1, 2017 – Sep 30, 2018)

Direct Unsubsidized Loans (undergraduate students)
4.45%
1.073% (between Oct 1, 2016 and Sep 30, 2017)

1.066% (on or after Oct 1, 2017 – Sep 30, 2018)

Direct Unsubsidized Loans (graduate students)
6%
1.073% (between Oct 1, 2016 and Sep 30, 2017)

1.066% (on or after Oct 1, 2017 – Sep 30, 2018)

Direct PLUS Loans (parents and graduate students)
7%
4.276% (between Oct 1, 2016 and Sep 30, 2017)

4.264% (on or after Oct 1, 2017 – Sep 30, 2018)

 

The following table provides interest rates and origination fees for new Direct Loans made on or after July 1, 2016 and before July 1, 2017 for the 2016-2017 academic year.

Loan Type
Interest Rate
Origination Fee
Direct Subsidized and Unsubsidized Loans (undergraduate students)
3.76%
1.068% (between Oct 1, 2015 and Sep 30, 2016)

1.069% (on or after Oct 1, 2016 and Sep 30, 2017)

Direct Unsubsidized Loans (graduate students)
5.31%
1.068% (between Oct 1, 2015 and Sep 30, 2016)

1.069% (on or after Oct 1, 2016 and Sep 30, 2017)

Direct PLUS Loans (parents and graduate students)
6.31%
4.272% (between Oct 1, 2015 and Sep 30, 2016)

4.276% (on or after Oct 1, 2016 and Sep 30, 2017)

 

If you would like more in-depth information about federal student loans, please review the Department of Education FAQs link opens in a new window on the interest rates. Click here to view a list of prior year(s) interest rates. link opens in a new window