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.
2025-2026 Direct Loan interest rates and fees
| Borrower Type | Loan Type | Direct Loan Fees (disbursed prior to 10/1/2022*) | Direct Loan Interest Rates (loans disbursed 7/1/22 to 6/30/23) |
|---|---|---|---|
| Undergraduate | Direct Subsidized | 1.057% | 6.39% |
| Undergraduate | Direct Unsubsidized | 1.057% | 6.39% |
| Graduate | Direct Unsubsidized | 1.057% | 7.94% |
| Parent or Graduate/Professional | Direct PLUS | 4.228% | 8.94% |
*Direct Loan Fees for loans disbursed on or after October 1, 2025 will be published once this information becomes available.