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Loan Fees and Interest Rates

Loan Fees

Direct Subsidized and Unsubsidized Loans with a first disbursement date after December 1, 2013, have a loan fee of 1.072%. The loan fee for Direct PLUS (Parent and Graduate borrowers) is 4.288%. The fee is deducted from the loan funds the university receives.

Interest Rates for Direct Loans

On August 9, 2013 President Obama signed into law the Bipartisan Student Loan Certainty Act of 2013 which amends section 455(b) of the HEA to provide new formulas for the determination of interest rates for all Direct Loan types. Annually, the interest rate on Direct Loans will adjust based on the 10-Year Treasure Note Index with an add-on amount to set a fixed interest rate for the life of the loan that disburses in the aid year (always July 1 to June 30). The Bipartisan Student Loan Certainty Act also set caps for each loan. See the table below for the interest rates for loans first disbursed after July 1, 2013 and before June 30, 2014.

Loan Type Student Grade Level 2013-2014 Fixed Interest Rate 2014-2015 Fixed Interest Rate
Direct Subsidized Undergraduate 3.86% 4.66%
Direct Unsubsidized Undergraduate 3.86% 4.66%
Direct Unsubsidized Graduate 5.41% 6.21%
Direct PLUS Parents of Undergraduates and Graduate/Professional Students 6.41% 7.21%

 For more information on how interest rates are calculated, please see this document.

Loan interest rates for academic years prior to July 1, 2013:

  • All Direct Subsidized, Direct Unsubsidized, and Direct PLUS loans first disbursed on or after July 1, 2006 have a fixed interest rate for the life of the loan
  • The interest rate for Direct Subsidized Loans for graduate borrowers and Unsubsidized loans for undergraduate and graduate borrowers first disbursed between July 1, 2006 and June 30, 2013 is 6.8%
  • Direct PLUS Loan interest rate first disbursed between July 1, 2006 and June 30, 2013 is fixed at 7.9%
  • Direct Subsidized Loans for undergraduates with a first disbursement date between July 1, 2009 and  June 30, 2010 is 5.6%
  • Direct Subsidized Loans for undergraduates with a first disbursement date between July 1, 2010 and  June 30, 2011 is 4.5%
  • Direct Subsidized Loans for undergraduates with a first disbursement date between July 1, 2011 and  June 30, 2013 is 3.4%