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Bipartisan Student Loan Certainty Act of 2013 ties federal student loan interest rates to financial markets.

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 the new Direct Loans made on or after July 1, 2021 and before July 1, 2022 for the 2021-2022 academic year.

Loan TypeInterest RateOrigination Fee
Direct Subsidized and Unsubsidized Loans (undergraduate)3.73%1.057% (on or after Oct 1, 2021 and before Oct 1. 2022)
Direct Unsubsidized Loans (graduate students)5.28%4.228% (on or after Oct 1, 2021 and before Oct 1. 2022)
Direct PLUS Loans (parents and graduate students)6.28%4.228% (on or after Oct 1, 2021 and before Oct 1. 2022)

The following table provides interest rates and origination fees for the new Direct Loans made on or after July 1, 2020 and before July 1, 2021 for the 2021-2020 academic year.

Loan TypeInterest RateOrigination Fee
Direct Subsidized Loans (undergraduate students)2.75%1.057% (on or after Oct 1, 2020 and before Oct 1, 2021)
Direct Unsubsidized Loans (undergraduate students)2.75%1.057% (on or after Oct 1, 2020 and before Oct 1, 2021)
Direct Unsubsidized Loans (graduate students)4.30%4.228% (on or after Oct 1, 2020 and before Oct 1, 2021)
Direct PLUS Loans (parents and graduate students)5.30%4.228% (on or after Oct 1, 2020 and before Oct 1, 2021)

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