Interest Rates for Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct PLUS Loans First disbursed on or after July 1, 2018 and before July 1, 2019 Loan Type 10-Year Treasury Note High Yield Add-On Fixed Interest Rate Direct Subsidized Loans and Direct Unsubsidized Loans for Undergraduate Students 2.995% 2.05% 5.05% Direct PLUS Loans for Parents of Dependent … Because of these lower fees, your child’s federal student loans will cost less, meaning parent PLUS loans would not … Borrowing & Interest Rates . Direct PLUS Parent Loans disbursed on or after July 1, 2017, and before July 1, 2018 have a fixed interest rate … PLUS loans are also available to graduate and professional students. PLUS Repayment . The changes that affected unsubsidized loans also impacted Direct PLUS Loans. The chart below shows the interest rates for Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct PLUS Loans first disbursed on or after July 1, 2020 and before July 1, 2021. Since 2013, interest rates on federal student loans have been set annually according to the 10-year Treasury note rate, plus a fixed percentage that differs by loan type (e.g., subsidized Stafford, unsubsidized Stafford, PLUS). Direct Parent PLUS Loan Limits. Current Federal Student Loan Interest Rates. PLUS Loan (Parent, and Graduate/Professional students): 7.08% Interest rates are established each year. PLUS Loans with a first disbursement date on or after July 1, 2019 and before July 1, 2020 will have an interest rate of 7.08%. On May 12, 2020, the Treasury Department held a 10-year Treasury note auction that resulted in a high yield of 0.700%. The new interest rate is … Interest rates were fixed at 7.9% from 2006 to 2013 until the Bipartisan Student Loan Certainty Act came around. • The interest rate is established each year based on the 10year Treasury note auctioned at the final auction held prior to June 1 plus - a statutorily defined add-on. The federal student loan interest rates for 2020-2021 will be the lowest on record, with undergrad loans at 2.75%. You can review the Parent PLUS interest rate at studentaid.gov. Another difference is that the FFEL PLUS Loan gives you a choice of lenders, while the Direct PLUS Loan does not. Direct Unsubsidized Loans have lower fees and interest rates than PLUS Loans. With a 5.05% interest rate and 1.062% loan fee, these loans for students have significantly lower costs than parent PLUS loans, which currently have a 7.08% interest rate and 4.236% loan fee. Interest is charged on the Grad PLUS loan from the date the first disbursement is made until the loan is paid in full. The Direct PLUS Loan program is a non-need based, low-interest loan made to graduate students. Federal Direct Grad PLUS Loan. The original, now obsolete, meaning of the acronym was "Parent Loan for Undergraduate Students". If there are future changes to federal law that affect federal student loan interest rates, this information will be updated to reflect those changes. The Federal Direct Parent PLUS Loan is a fixed-rate loan with a 5.3% interest rate effective July 1, 2020. The interest rate on Direct PLUS loans tends to be higher than Stafford loans. PLUS Loans with a first disbursement date on or after July 1, 2020 and before July 1, 2021 will have an interest rate of 5.30%. Interest rate. and Direct PLUS Loans for Graduate/Professional Students 7.08% Knowing and understanding the interest rates of your federal student loans is an important step in navigating the path to financial success. Loan Fees. Interest begins to accumulate when the first disbursement is made. Since 2013, interest rates on federal student loans have been set annually according to the 10-year Treasury note rate, plus a fixed percentage that differs by loan type (e.g., subsidized Stafford, unsubsidized Stafford, PLUS). Below is information regarding variable and fixed interest rates for Stafford and PLUS loans. Federal student loan interest rates for the fall are determined by the 10-year Treasury note auction every May plus a fixed increase with a cap. There is an up-front fee called the origination fee that hovers around 4% of the loan amount. Federal Direct Student Loan Interest Rates and Origination Fees Interest Rates for Federal Direct Student Loans First disbursed on or after July 1, 2020 and prior to July 1, 2021 Loan Origination Fees for Federal Direct Student Loans . For the current 2020-2021 aid year, the interest ratefor a ParentPLUS Loan is 5.3%. Who sets interest rates for federal student loans? Direct PLUS Loan Payment Calculator. Direct PLUS Loans are not based on need but rather on the borrower's creditworthiness. Interest rates on Federal PLUS Loans. Federal Direct Loan Interest Rates 2019-20. The Grad PLUS Loan has a fixed interest rate cap of 10.5%. Interest rates are determined annually based on the Final Auction of the 10-year U.S. Treasury Bill prior to June 1st and are not to exceed 10.50%. Beginning July 1, 2013, the Parent PLUS interest rate varies annually with a maximum rate of 10.5%. Direct PLUS Loans have a fixed interest rate of 7.9 percent and FFEL loans have an interest rate of 8.5 percent. Grad PLUS Loans are federal loans that graduate and professional students with good credit history may borrow to help pay educational expenses. The student may borrow an amount up to the cost of attendance less any financial assistance. +-Fees Fees are deducted from the loan funds and are included in the amount a parent will pay back. Interest will begin to accrue as soon as the loan disburses. Interest on the Direct Graduate PLUS Loan. Student loan interest rates are set for the following year based on the May 10-year treasury auction, plus an add-on interest rate. For example, if you took an undergraduate loan last year for $7,500 with a 4.53% interest rate, and a standard 10-year repayment plan, you will be paying around $1,840 worth of interest. For the most up to date information please visit studentloans.gov. Interest Rates. There is some evidence that FFEL PLUS Loans are harder to qualify for than Direct PLUS Loans. 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 will be fixed for the life of the loan. PLUS loans come with an interest rate that’s fixed for the life of the loan, which means you’ll know exactly how much you’ll pay in interest in the long run. The interest rates will be fixed for the life of the loan. Major milestones of the interest rate formulas on the Direct Loan: 2008-09 through 2011-12: Cut subsidized Stafford loan interest rates for undergraduate students to 6.0%, 5.6%, 4.5% and 3.4%, with a return to 6.8% in 2012-13. Direct Consolidation Loans. Loan fees remain at 1.059% for Federal Direct Stafford loans and 4.236% for Federal Direct PLUS loans through September 30, 2020. After interest is capitalized, interest will be charged on the interest, causing the loan to grow faster. Parent PLUS loan interest rates from recent years range from 6.31% to 7.9%, depending on the year in which you borrowed. If you are denied based on adverse credit, you may obtain a credit-worthy endorser who is secondarily responsible for the loan. The previous record low for interest rates on federal student loans was set in 2005, when interest rates were as low as 2.875%. Interest rates on federal student loans are fixed for the life of the loan. There is also an origination fee of 4.228%, which is deducted from each loan disbursement. The Federal Direct PLUS Loan Program requires a 4.228% origination fee and will be proportionately deducted from each loan disbursement. Interest Rates & Fees. While this may seem high compared to the 4.29% rate undergraduates pay for direct loans, it’s still lower than many of the rates offered by private lenders. After that, Congress set rates to the high-yield 10-year Treasury note plus 4.6%. A parent may borrow up to the cost of attendance (established by the school) minus other financial aid including other student loans. Interest rates for fixed-rate undergraduate subsidized FFELP and FDLP Stafford loans. The rate is fixed 7.9% for loans made on or after July 1, 2006. The interest rate for federal direct PLUS loans is 5.30% for 2020-21. The interest rate in effect for each year is fixed for the life of that loan. Direct Loan Interest Rates for 2020-2021. You may borrow up to the total of the Estimated Cost of Attendance minus resources and other financial aid. ... All loans disbursed between 7/1/20 through 6/30/21 will be subject to a fixed interest rate of 5.3%. A PLUS Loan is a student loan, which is part of the Federal Direct Student Loan Program, offered to parents of students enrolled at least half time, or graduate and professional students, at participating and eligible post-secondary institutions. Interest Rates for loans disbursed from July 1, 2019 - June 30, 2020: The interest rates for federal student loans are determined by federal law. PLUS loans are low-interest federally insured loans for parents of undergraduate students to help pay a dependent student’s college cost. Direct PLUS loans – 5.3%; Compared to last year, students will be paying 1.78% less on interest, which could save you hundreds to thousands of dollars over the life of the loan. Borrowers of multiple federal student loans can choose to consolidate them into a single Direct Consolidation Loan. These cuts are available only to undergraduate students, not graduate students, and only for subsidized Stafford loans, not unsubsidized Stafford loans. Direct Loan Program's Interest Rates from July 1, 2001 to June 30, 2002: Federal Direct PLUS Consolidation Loans: Date the loan was first disbursed between: Status: Treasury Instrument: Add-on: Interest Rate for 7/1/2001 to 6/30/2002: Maximum Interest Rate: 7/1/1995 and 6/30/1998: All Periods: 1-year constant maturity Treasury yield . The Catholic University of America participates in the William D. Ford Federal Direct Graduate PLUS Loan Program (Direct PLUS). Eligible credit-worthy students can borrow up to the full cost of attendance, minus any other financial aid they are receiving. 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