Federal Direct Loans
Interest Rates
Direct Loan Interest Rates for 2023-2024
|
Loan Type |
Borrower Type |
Loans first disbursed on or after July 1, 2021 and before July 1, 2022 |
Loans first disbursed on or after July 1, 2022 and before July 1, 2023 |
Loans first disbursed on or after July 1, 2023 and before July 1 2024 |
|---|---|---|---|---|
| Direct Subsidized Loans | Undergraduate |
3.73% |
4.49% |
5.50% |
| Direct Unsubsidized Loans | Undergraduate | 3.73% | 4.99% | 5.50% |
| Direct Unsubsidized Loans | Graduate or Professional | 5.28% | 6.54% | 7.05% |
| Direct Plus Loans | Parents of Dependent Students or Graduate or Professional Students | 6.28% | 7.54% | 8.05% |
There is a loan origination fee on all Direct Subsidized and Direct Unsubsidized Loans. The loan fee is a percentage of the loan amount and is deducted from each loan when it pays. The current loan origination fee is 1.057%.
Direct Loan Interest Rates for 2024-2025
On May 8, 2024, the Treasury Department held a 10-year Treasury note auction that resulted in a high yield of 4.483%. The chart below shows the interest rates for Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct PLUS Loans first disbursed on or after July 1, 2024 and before July 1, 2025.
| Interest Rates for Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct PLUS Loans First disbursed on or after July 1, 2024 and before July 1, 2025 |
|||
| Loan Type | 10-Year Treasury Note High Yield | Add-On | Fixed Interest Rate |
| Direct Subsidized Loans and Direct Unsubsidized Loans for Undergraduate Students |
4.483% | 2.05% | 6.53% |
| Direct Unsubsidized Loans for Graduate and Professional Students |
4.483% | 3.60% | 8.08% |
| Direct PLUS Loans for Parents of Dependent Undergraduate Students and for Graduate or Professional Students |
4.483% | 4.60% | 9.08% |