Interest Rates and Fees

All new federal student loans come directly from the U.S. Department of Education (ED) under the William D. Ford Federal Direct Loan Program (Federal Direct Loans). Before July 1, 2010, Stafford, PLUS and consolidation Loans were also made by private lenders under the Federal Family Education Loan Program.

Current interest rate and fee information for various education loans is provided below. The Federal Student Aid website provides more information about how interest is calculated.

For details regarding each loan program, click on the corresponding link(s).

Federal Stafford Loans

The interest rate on subsidized and unsubsidized Federal Stafford loans for undergraduate students disbursed on or after July 1, 2018 is fixed at 5.05%.

Unsubsidized Federal Stafford loans for graduate students (graduate students are not eligible for subsidized loans) disbursed on or after July 1, 2018 have a fixed rate of 6.60%.

Federal PLUS Loans

The interest rate on Federal PLUS loans (for parents and for graduate/professional students) disbursed on or after July 1, 2018 is fixed at 7.60%.

The Federal Student Aid website provides more information about interest rates and how interest is calculated.

Federal Perkins Loans

The interest rate is fixed at 5 percent.

Federal Consolidation Loans

The fixed interest rate is the weighted average of the interest rates in effect on the loans at the time of consolidation, rounded to the nearest higher 1/8th of one percent. The interest rate may not exceed the maximum rate of 8.25%.

Alternative Loans

Interest rates are determined by the lending institution. There is no federally-mandated maximum rate.

Fees

A federally mandated fee of 1.066% is charged on Stafford loans first disbursed through September 30, 2018. Stafford loans disbursed between October 1, 2018 and September 30, 2019 have a fee of 1.062%.

For PLUS loans, the fee is 4.264% for loans first disbursed through September 30, 2018. PLUS loans disbursed between October 1, 2018 and September 30, 2019 have a fee of 4.248%.

The fee is deducted from the loan proceeds prior to disbursement.