Effective July 1, 2016
On May 11, 2016, the U.S. Treasury’s 10-year Treasury note auction resulted in a decrease in interest rates for federal student loans disbursed on or after July 1, 2016. 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, 2016 are as follows:
|Loan Type||2016–17 Interest Rate||2015–16 Interest Rate|
|Direct Subsidized Loans (Undergraduate)||3.76%||4.29%|
|Direct Unsubsidized Loans (Undergraduate)||3.76%||4.29%|
|Direct Unsubsidized Loans (Graduate)||5.31%||5.84%|
|Direct PLUS Loans (Graduate and Parents)||6.31%||6.84%|