Federal Direct Loan Interest Rates

Interest rates for federal direct loans disbursed between July 1, 2012 and June 30, 2013:

• undergraduate subsidized direct loans fixed at 3.4 percent; this rate is expected to increase to 6.8 effective July 1, 2013
• undergraduate unsubsidized direct loans fixed at 6.8 percent
• graduate students are no longer eligible for subsidized loans per federal regulations
• graduate unsubsidized direct loans fixed at 6.8 percent
• graduate PLUS direct loans 7.9 percent
• parent PLUS direct loans 7.9 percent

The change from a variable- to a fixed-interest rate does not affect a borrower's variable-interest rate on loans made before July 1, 2006.

A 1.05 percent origination fee for all Stafford loans and a 4.20 percent origination fee for all PLUS loans is paid to the U.S. Department of Education.

Learn more about the Federal Direct Loan Program:

• loan limits
• repayment and consolidation
• loan forgiveness