What's Happening

New Interest Rates for Federal Loans

Congress has passed and President Obama has signed The Bipartisan Student Loan Certainty Act of 2013.

Under this Act, interest rates are variable annually and will be determined each June for new loans being made for the upcoming award year, which runs from July 1 to the following June 30.

Each loan borrowed after July 1, 2013, will have a fixed interest rate for the life of the loan.

For the 2013-2014 academic year:

  • Both subsidized and unsubsidized Direct loan programs borrowed by undergraduates  will have an interest rate of 3.86%
  • The interest rate for PLUS  Loans will be 6.41%
  • All rates are tied to the 10-year Treasury note
  • All subsidized and unsubsidized loans made after July 1, 2013 will be retroactively changed to the 3.86% rate
  • All PLUS loans made after July 1, 2013 will be retroactively changed to the 6.41%
  • There are interest rate caps  in place  for federal loans  to protect consumers in future years:
    • 8.25% for all undergraduate Stafford loans;
    • 10.5% on PLUS (parent) loans.
        
Posted Date: 
August 23, 2013