Loan Interest Rates

Loan Interest Rates

If you receive a federal student loan, you will be required to repay that loan with interest. Interest is money paid in exchange for borrowing money and is calculated as a percentage of the unpaid principal loan amount borrowed. 

Federal student loans only offer a fixed interest rate. A fixed interest rate is an interest rate that stays the same for the life of the loan.

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. 

Interest starts to accrue once a federal student loan is disbursed and continues to accrue until you've paid off your loans.  The amount of interest that accrues 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, 2022 - July 1, 2023


Loan Type

Fixed Interest Rate

Direct Unsubsidized Loan


Direct Grad 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.