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Federal Direct Student Loan Interest Rates and Fees

All Federal Direct loan programs listed below will have the Direct Loan Fees listed deducted from the amount accepted prior to fund disbursement.  Each year the Federal student loan interest rates are set according to the yield of the 10-year U.S. Treasury note plus a fixed percentage. On May 13, 2015, the U.S. Treasury held the 10-year Treasury note auction, which resulted in a decrease in the interest rate for Federal student loans disbursed on or after July 1, 2015.

The rates and fees for the loans first disbursed on or after July 1, 2015 are shown in the tables below.

The new interest rate is tied to the “high yield of the 10-year Treasury note” as of June 1st preceding the effective period plus a predefined add-on. The interest rate for a loan, once established, will apply for the life of the loan – that is, the loan will be a fixed-rate loan. The new interest rates for the upcoming 2015-2016 aid year are shown in the second table below:

Student TypeLoan TypeDirect Loan Fees
(disbursed prior to Oct. 1, 2015 / on or after Oct. 1, 2015)
Undergraduate Direct Subsidized 1.073% / 1.068%
Direct Unsubsidized 1.073% / 1.068%
Graduate Direct Unsubsidized 1.073% / 1.068%
ALL Direct PLUS (Parent or Grad/Prof) 4.292% / 4.272%


Student TypeLoan TypeInterest Rate
(Loans First Disbursed 7/1/2015– 6/30/2016)
Undergraduate Direct Subsidized 4.29%
Direct Unsubsidized 4.29%
Graduate Direct Unsubsidized 5.84%
ALL Direct PLUS (Parent or Grad/Prof) 6.84%

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