New Federal Direct Loan Interest Rates

June 16, 2014

On May 15, 2014, the Department of Education announced new interest rates for the Federal Direct Subsidized Loans, Federal Direct Unsubsidized Loans, and Federal Direct PLUS Loan (Parent Loan for Undergraduate Students) with a first disbursement on or after July 1, 2014 through June 30, 2015. The interest rates are the sum of a uniform “index rate” of the 10-Year Treasury note (T-note) index plus an “add-on” that varies depending on the type of loan. Once established, the interest rates apply for the life of the loan.

Established Interest Rates for Undergraduates during the 2014-2015 Academic Year:

  • Federal Direct Subsidized Loans fixed at 4.66% (2.61% T-note and 2.05% add-on with interest rate cap at 8.25%)
  • Federal Direct Unsubsidized Loans fixed at 4.66% (2.61% T-note and 2.05% add-on with interest rate cap at 8.25%)
  • Federal Direct PLUS Loans fixed at 7.21% (2.61% T-note and 4.60% add-on with interest rate cap at 10.50%)

For graduate/professional students Federal Direct Unsubsidized Loans, established interest rate is fixed at 6.21% (2.61% T-note and 3.60% add-on with interest rate cap at 9.50%).

Let us know if you have questions or need further information.