Earlier this month Congress passed new legislation lowering the interest rate on Federal Direct Stafford and Federal Direct PLUS loan interest rates. The 2013-2014 interest rate for Federal Direct Stafford Loans (Subsidized and Unsubsidized) has dropped from 6.8% to 3.86% under the new legislation. The 2013-2014 interest rate for the Federal Direct PLUS Loan has dropped from 7.9% to 6.41%.
The interest rate is “variable-fixed”, meaning each academic year, each new loan in the Federal Direct Program receives a new interest rate, but then the rate is fixed for the life of the loan. Interest rates are calculated using a base 10-year Treasury Note Index plus an add-on amount for each loan program. The Federal Direct Stafford Loans are capped at 8.25% and the Federal Direct PLUS is capped at 10.5%.
Please contact Student Financial Services if you have any questions.