If you receive a federal student loan, you will be required to repay that loan with interest. Make sure 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.
Federal Interest Rates
The interest rate for a federal student loan varies depending on
- the loan type and
- the first disbursement date of the loan (for most types of federal student loans).
The chart below displays the Interest Rates for Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct PLUS Loans first disbursed on or after July 1, 2022 and before July 1, 2023.
| Loan Type | Borrower Type | Fixed Interest Rate |
|---|---|---|
| Direct Subsidized Loans and Direct Unsubsidized Loans | Undergraduate | 4.99% |
| Direct Unsubsidized Loans | Graduate or Professional | 6.54% |
| Direct PLUS Loans | Parents and Graduate or Professional Students | 7.54% |
All interest rates shown in the chart above are fixed rates. A fixed rate will not change for the life of the loan.
Federal Loan Fees
Most federal student loans have loan fees. These fees are a percentage of the total loan amount.
A loan fee comes out of the amount of money that is disbursed (paid out) to you while you’re in school. This means the money you receive will be less than the amount you actually borrow.
You’re responsible for repaying the entire amount you borrowed and not just the amount you received.
The chart below shows the loan fees for Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct PLUS Loans first disbursed on or after Oct. 1, 2020.
| Loan Type | First Disbursement Date | Loan Fee |
|---|---|---|
| Direct Subsidized Loans and Direct Unsubsidized Loans | On or after 10/1/20 and before 10/1/23 | 1.057% |
| Direct PLUS Loans | On or after 10/1/20 and before 10/1/23 | 4.228% |
Loans first disbursed prior to Oct. 1, 2020, have different loan fees.
For more information about Federal Interest Rates and Fees for Federal Student Loans, visit https://studentaid.gov/understand-aid/types/loans/interest-rates.