On May 9, 2018, the U.S. Treasury’s 10-year Treasury note auction resulted in an increase in interest rates for federal student loans disbursed on or after July 1, 2018 and before July 1, 2019. The interest rates will be fixed for the life of the loan.
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 rates for loans first disbursed on or after July 1, 2018 (and before July 1, 2019), along with a comparison of the past two years, are as follows:
|Loan Type||2018-19 Rate||2017-18 Rate||2016-17 Rate|
|Direct Subsidized Loans (Undergraduate)||5.05%||4.45%||3.76%|
|Direct Unsubsidized Loans (Undergraduate)||5.05%||4.45%||3.76%|
|Direct Unsubsidized Loans (Graduate)||6.6%||6%||5.31%|
|Direct PLUS Loans (Graduate and Parents)||7.6%||7%||6.31%|