Interest Rates for Direct Subsidized, Direct Unsubsidized, and Direct PLUS loans


Interest rates are established each year for Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct PLUS Loans for which the first disbursement is on or after July 1 through the following June 30. The rate is the sum of a uniform “index rate” plus an “add-on” that varies depending on the type of loan and whether the borrower is an undergraduate or a graduate/professional student. Interest rates are the same for Direct Subsidized Loans and Direct Unsubsidized Loans taken out by undergraduate students, with a different rate for Direct Unsubsidized Loans taken out by a graduate/professional student and for PLUS Loans taken out by parent borrowers or graduate/professional student borrowers.


The interest rate for a loan, once established, applies for the life of the loan – meaning the loan is a fixed-rate loan.


Interest Rates for Direct Consolidation Loans

For Direct Consolidation Loans the interest rate is the weighted average of the interest rates on the loans included in the consolidation, rounded up to the next higher one-eighth of one percent. There is no longer a maximum interest rate for Direct Consolidation Loans.


Direct Loan Interest Rates for 2014-2015 Federal Direct Student Loans 2014-2015 Interest Rates Effective for Loans First Disbursed on or after July 1, 2014 and prior to July 1, 2015
Loan Type Borrower Type Index Add-On Fixed Interest Rate

10 Year Note

Direct Subsidized Loans Undergraduate Students 2.612% 2.05% 4.66%
Direct Unsubsidized Loans Undergraduate Students 2.612% 2.05% 4.66%
Direct Unsubsidized Loans Graduate/Professional Students 2.612% 3.60% 6.21%
Direct PLUS Loans Parents of Dependent Undergraduate Students and Graduate/Professional Students 2.612% 4.60% 7.21%

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