Loan Interest Rates

2024-2025 Interest Rates 

Loans first disbursed on, or after July 1, 2024, and prior to July 1, 2025:

Subsidized/Unsubsidized Loan (Undergraduate Students): 6.53%
Unsubsidized Loan (Graduate/Professional Students): 8.08%
PLUS Loan (Parent, and Graduate/Professional students): 9.08% 

 

2023-2024 Interest Rates 

Loans first disbursed on, or after July 1, 2023, and prior to July 1, 2024:

Subsidized/Unsubsidized Loan (Undergraduate Students): 5.50%
Unsubsidized Loan (Graduate/Professional Students): 7.05%
PLUS Loan (Parent, and Graduate/Professional students): 8.05% 


2022-2023 Interest Rates


Loans first disbursed on, or after July 1, 2022, and prior to July 1, 2023:

Subsidized/Unsubsidized Loan (Undergraduate Students): 4.99%
Unsubsidized Loan (Graduate/Professional Students): 6.54%
PLUS Loan (Parent, and Graduate/Professional students): 7.54% 


2021-2022 Interest Rates

Loans first disbursed on, or after July 1, 2021, and prior to July 1, 2022:

Subsidized/Unsubsidized Loan (Undergraduate Students): 3.73%
Unsubsidized Loan (Graduate/Professional Students): 5.28%
PLUS Loan (Parent, and Graduate/Professional students): 6.28% 

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How Interest Rates are Determined

Federal student loan interest rates are established each year. There are also interest rate caps:

  • 8.25% for Direct Subsidized loans and Direct Unsubsidized loans for undergraduate students 
  • 9.50% for Direct Unsubsidized loans for graduate/professional students

The interest rates are calculated using a base 10-year Treasury Note Index of 1.710% plus an add-on amount for each loan program

  • 2.05% for Direct Subsidized loans and Direct Unsubsidized loans for undergraduate students 
  • 3.60% for Direct Unsubsidized loans for graduate/professional students

Interest Rates and Rate Accrual

The following table compares interest rates and rate accrual for a $10,000 loan for the 2024-25 school year:

Type of Loan Interest Rates for 2024-25 Academic Year Daily Accrual while in school Daily Accrual after 6-month grace period
Federal Direct Stafford Subsidized 6.53%* *$0 $1.78 per day
Federal Direct Stafford Unsubsidized (Undergrad) 6.53% $1.78 per day $1.78 per day
Federal Direct Stafford Unsubsidized (Graduate) 8.08% $2.21 per day $2.21 per day
Federal Direct PLUS (Graduate or Parent) 9.08% $2.48 per day $2.48 per day
Alternative Loan Varies by credit from 4.0% - 20.0% $1.09 - $4.10 per day $1.09 - $5.47 per day

*Subsidized loans do not accrue interest while student is enrolled at least half time or during the 6-month grace period after graduation.

For more information about federal loans, visit the Federal Student Aid website. 

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 Loan Cohort Default Rate

Current Loan Cohort Default Rate: 

FY 2020  0% (Due to the pandemic pause on student payments)
FY 2019: 0.9%
FY 2018: 2.9%
FY 2017: 3.7%

Students Receiving Federal Loans: 20%
Median Total Debt After Graduation: $15,000
Typical Monthly Loan Payment: $171 (based on a standard 10 year repayment plan)


Source: Collegescorecard.ed.gov