Interest Rates and Fees for Federal Student Loans

Interest is paid to a lender as a cost of borrowing money. Interest is calculated as a percentage of the unpaid principal amount. Unlike other forms of debt, such as credit cards and mortgages, Direct Loans are daily interest loans, which means that interest accrues (accumulates) daily. Depending on whether your loans are subsidized or unsubsidized, you may or may not be responsible for paying the interest that accrues during all periods.

The interest rate for a federal student loan varies depending on

• The loan type and
• The first disbursement date of the loan (for most federal student loans).

For student loans on or after July 1, 2025, and before July 1, 2026:

• For undergraduate students, the interest rate for Direct Subsidized Loans and Direct Unsubsidized Loans is 6.39%
• For graduate or professional students, the interest rate for Direct Unsubsidized loans is 7.94%.
• For parents of dependent undergraduate students and for graduate or professional Students, the interest rate for Direct PLUS Loans is 8.94%.

The chart above shows all interest rates as fixed rates that will remain the same throughout the loan's life.

For more information visit: Federal Interest Rates and Fees | Federal Student Aid