Loan Interest Rates

If you receive a federal student loan, you will be required to repay that loan with interest. It is important that you understand how interest is calculated and the fees associated with your loan. Both of these factors will impact the amount you will be required to repay. Interest is money paid in exchange for borrowing money. Interest is calculated as a percentage of the unpaid principal loan amount borrowed. The interest rate varies depending on the loan type and (for most types of federal student loans) the first disbursement date of the loan. The interest rates for federal student loans are set by Congress and are subject to change by federal law. 

The interest rate for a loan, once established, applies for the life of the loan-that is, the loan is a fixed-rate loan. Interest starts to accrue once a disbursement is made each semester. The amount of interest that accrues (accumulates) on your loan from month to month is determined by a simple daily interest formula determined by the U.S. Department of Education. See the Federal Student Aid website for more information and historical interest rates.

Effective for Loans With a First Disbursement on or After July 1, 2019 - July 1, 2020

Loan Interest Rates 2019-2020 Academic Year

Loan Type

Fixed Interest Rate

Direct Unsubsidized



Direct Plus Loan


Direct Consolidation Loan

For Direct Consolidation Loans the interest rate is the weighted average of the interest rates on the loans included in the consolidation, rounded up to the next higher one-eighth of one percent. There is no maximum interest rate for Direct Consolidation Loans.

*Subject to change according to U.S. Department of Education policy.