Federal Direct Grad PLUS Loan. Major milestones of the interest rate formulas on the Direct Loan: 2008-09 through 2011-12: Cut subsidized Stafford loan interest rates for undergraduate students to 6.0%, 5.6%, 4.5% and 3.4%, with a return to 6.8% in 2012-13. Interest on the Direct Graduate PLUS Loan. The rate is fixed 7.9% for loans made on or after July 1, 2006. PLUS loans are also available to graduate and professional students. The changes that affected unsubsidized loans also impacted Direct PLUS Loans. After interest is capitalized, interest will be charged on the interest, causing the loan to grow faster. Current Federal Student Loan Interest Rates. A PLUS Loan is a student loan, which is part of the Federal Direct Student Loan Program, offered to parents of students enrolled at least half time, or graduate and professional students, at participating and eligible post-secondary institutions. Federal student loan interest rates for the fall are determined by the 10-year Treasury note auction every May plus a fixed increase with a cap. There is some evidence that FFEL PLUS Loans are harder to qualify for than Direct PLUS Loans. Federal Direct Loan Interest Rates 2019-20. After that, Congress set rates to the high-yield 10-year Treasury note plus 4.6%. The new interest rate is … Interest rates for fixed-rate undergraduate subsidized FFELP and FDLP Stafford loans. Since 2013, interest rates on federal student loans have been set annually according to the 10-year Treasury note rate, plus a fixed percentage that differs by loan type (e.g., subsidized Stafford, unsubsidized Stafford, PLUS). Interest begins to accumulate when the first disbursement is made. 4. Loan Fees. Below is information regarding variable and fixed interest rates for Stafford and PLUS loans. While this may seem high compared to the 4.29% rate undergraduates pay for direct loans, it’s still lower than many of the rates offered by private lenders. The original, now obsolete, meaning of the acronym was "Parent Loan for Undergraduate Students". As of July 1, 2015, the current interest rate for Parent PLUS loans is 6.84%. Interest rates for Federal PLUS and Perkins Loans The interest rates will be fixed for the life of the loan. Direct PLUS Loans have a fixed interest rate of 7.9 percent and FFEL loans have an interest rate of 8.5 percent. Grad PLUS Loans are federal loans that graduate and professional students with good credit history may borrow to help pay educational expenses. Interest rates are determined annually based on the Final Auction of the 10-year U.S. Treasury Bill prior to June 1st and are not to exceed 10.50%. Interest rate. Direct Consolidation Loans. Interest Rates for Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct PLUS Loans First disbursed on or after July 1, 2018 and before July 1, 2019 Loan Type 10-Year Treasury Note High Yield Add-On Fixed Interest Rate Direct Subsidized Loans and Direct Unsubsidized Loans for Undergraduate Students 2.995% 2.05% 5.05% Direct PLUS Loans for Parents of Dependent … Direct PLUS loans – 5.3%; Compared to last year, students will be paying 1.78% less on interest, which could save you hundreds to thousands of dollars over the life of the loan. Interest rates were fixed at 7.9% from 2006 to 2013 until the Bipartisan Student Loan Certainty Act came around. Who sets interest rates for federal student loans? For the current 2020-2021 aid year, the interest ratefor a ParentPLUS Loan is 5.3%. 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, 2020 and before July 1, 2021. PLUS loans are low-interest federally insured loans for parents of undergraduate students to help pay a dependent student’s college cost. +-Fees Fees are deducted from the loan funds and are included in the amount a parent will pay back. Since 2013, interest rates on federal student loans have been set annually according to the 10-year Treasury note rate, plus a fixed percentage that differs by loan type (e.g., subsidized Stafford, unsubsidized Stafford, PLUS). If there are future changes to federal law that affect federal student loan interest rates, this information will be updated to reflect those changes. ... All loans disbursed between 7/1/20 through 6/30/21 will be subject to a fixed interest rate of 5.3%. PLUS Loan (Parent, and Graduate/Professional students): 7.08% Interest rates are established each year. Loan fees remain at 1.059% for Federal Direct Stafford loans and 4.236% for Federal Direct PLUS loans through September 30, 2020.
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