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), 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, 2024 and before July 1, 2025 for the 2024-2025 academic year.
| Loan Type | Interest Rate | Origination Fee |
| Direct Subsidized and Unsubsidized Loans (undergraduate) | 6.53% | 1.057% (on or after Oct. 1, 2024 and before Oct. 1, 2025) |
| Direct Unsubsidized Loans (graduate) | 8.08% | 1.057% (on or after Oct. 1, 2024 and before Oct. 1, 2025) |
| Direct PLUS Loans (parent and graduate) | 9.08% | 4.228% (on or after Oct. 1, 2024 and before Oct. 1, 2025) |
The following table provides interest rates and origination fees for the new Direct Loans made on or after July 1, 2023 and before July 1, 2024 for the 2023-2024 academic year.
| Loan Type | Interest Rate | Origination Fee |
|---|---|---|
| Direct Subsidized and Unsubsidized Loans (undergraduate) | 5.50% | 1.057% (on or after Oct. 1, 2023 and before Oct. 1, 2024) |
| Direct Unsubsidized Loans (graduate) | 7.05% | 1.057% (on or after Oct. 1, 2023 and before Oct. 1, 2024) |
| Direct PLUS Loans (parents and graduate) | 8.05% | 4.228% (on or after Oct. 1, 2023 and before Oct. 1, 2024) |
If you would like more in-depth information about federal student loans, please review the Department of Education FAQs on the interest rates. Click here to view a list of prior year(s) interest rates.