New Federal Loan Interest Rates

Interest rates on federal Stafford and PLUS loans have changed as a result of recent congressional action. Under provisions of this new legislation interest rates for new loans are set each year based on the 10-Year Treasury bill rate. For loans with a first disbursement occuring after June 30, 2013 and prior to July 1, 2014 the 10-Year Treasury bill rate is 1.81%. The rate for each new loan is fixed for the life of that loan.

Loan Type Interest Rate How it’s calculated
Undergraduate Stafford Loan (subsidized and unsubsidized) 3.86 % Current 10-Year Treasury bill rate (1.81%) plus 2.05%
Graduate Stafford Loan 5.41 % Current 10-Year Treasury bill rate (1.81%) plus 3.6%
PLUS Loan
(Parents and Graduate students)
6.41 % Current 10-Year Treasury bill rate (1.81%) plus 4.6%

Interest rates for new loans are set annually. Rates are calculated based on the current 10-Year Treasury bill rate. Thus, rates for new loans could be higher or lower than your prior year loan depending on the 10-Year Treasury bill rate current at the time those rates are set. While rates can vary from year to year, by law they can never be higher than the rate cap, which is 8.25% for Stafford Loans to undergraduates, 9.5% for Stafford Loans to graduate students, and 10.5% for PLUS Loans to parents and graduate students.

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