Interest Rates on Federal Student Loans Increase for 2018-2019

Interest Rates on Federal Student Loans Increase for 2018-2019

by Bianca Kowal on Jun 25, 2018

Each spring, interest rates on federal student loans are reset for new loans. For the 2018-2019 academic year, rates are set to increase by more than half a percentage point for loans made on or after July 1, 2018 as follows:

  • Direct Stafford Loans for Undergraduates (subsidized or unsubsidized) -- 5.045% (4.45% for 2017-2018)
  • Direct Stafford Loans for Graduate Students (unsubsidized only) -- 6.595% (6% for 2017-2018)
  • Direct PLUS Loans for Parents and Graduate Students -- 7.595% (7% for 2017-2018)

With subsidized loans, the federal government (not the borrower) pays the interest that accrues while the student is in school, during the six-month grace period after graduation, and during any loan deferment periods. Subsidized loans are based on financial need.

 

Click here to view the interest rate table for loans made on or after July 1, 2018, through June 30, 2019