Federal Direct Loan interest rates and fees

The interest rate for a loan, once established, applies for the life of the loan -- in other words, the loan is a fixed-rate loan.

  • Fees. All Federal Direct Loan programs listed below will have the Direct Loan fees listed deducted from the amount accepted prior to fund disbursement.
  • Interest rates. Each May, the Federal Loan interest rates for the following July through June period are set according to the yield of the 10-year U.S. Treasury note plus a fixed percentage. 

2026-2027 Direct Loan interest rates and fees

Direct Loan Fees and Interest Rates
Borrower Type Loan Type Direct Loan Fees Direct Loan Interest Rates (loans disbursed 7/1/26 to 6/30/27)
Undergraduate Direct Subsidized 1.057% 6.52%
Undergraduate Direct Unsubsidized 1.057% 6.52%
Graduate Direct Unsubsidized 1.057% 8.07%
Parent or Graduate/Professional Direct PLUS 4.228% 9.07%