Reminders & Updates
Federal Direct Student Loans: 2013-14 Interest Rates
Posted on August 13, 2013
During an Oval Office ceremony, President Barack Obama on Friday signed into law the student loan interest rate deal, under which interest rates will be based on the 10-year Treasury bill.
The act, which Congress passed July 31, sets interest rates for 2013-14 Federal Direct Student Loans at:
- Effective for Loans With a First Disbursement on or After July 1, 2013
- 3.86 percent for undergraduate Stafford (subsidized and unsubsidized)
- 5.41 percent for graduate Stafford
- 6.41 percent for PLUS (parents and graduate students)
In addition, it includes caps:
- 8.25 percent for undergraduate Stafford
- 9.5 percent for graduate Stafford
- 10.5 percent for PLUS
Loans will be “variable-fixed,” meaning students would receive a new rate with each new loan, but then that rate would be fixed for the life of the loan.