Interest Rates on New Federal Student Loans Decline Slightly

Last week, the U.S. Department of the Treasury released its annual auction results that are part of the calculation for new federal student loans. After years of steady increase, interest rates on federal student loans will drop by a fraction of a percent beginning on July 1. Since 2013, interest rates on federal student loans have been determined by the 10-year Treasury note auction plus a fixed percentage that varies by loan type (e.g., Subsidized Stafford, Unsubsidized Stafford, PLUS). 

The results of last week’s 10-year Treasury note auction will lead to a decrease of about 14 basis points for federal student loans disbursed between July 1, 2025 and June 30, 2026. The interest rates are fixed for the life of the loan. 

The information below demonstrates the changes in federal student loan interest levels, showing rates by loan type for the academic years 2022-23 through 2024-25.

Direct Subsidized Loan (Undergraduate)

• 2022-23:  4.99%
• 2023-24:  5.50%
• 2024-25:  6.53%
• 2025-26:  6.39%

Direct Unsubsidized Loan (Undergraduate)

• 2022-23:  4.99%
• 2023-24:  5.50%
• 2024-25:  6.53%
• 2025-26:  6.39%

Direct Unsubsidized Loan (Graduate)

• 2022-23:  6.54%
• 2023-24:  7.05%
• 2024-25:  8.08%
• 2025-26:  7.94%

Direct PLUS Loan (Graduate and Parent)

• 2022-23:  7.54%
• 2023-24:  8.05%
• 2024-25:  9.08%
• 2025-26:  8.94%

Download and review AccessLex Institute’s one-pager on federal student loan interest rates.