The Federal Direct Loan Program provides low-interest student loans to post-secondary students (undergraduates and graduate students) and their parents. The William D. Ford Federal Direct Loan Program, managed by the United States Department of Education, is the only government-backed student loan pr...
The interest rate for direct federal undergraduate student loans disbursed after July 1, 2024 will be 6.53%, the Department of Education announced Tuesday. That's up from the current 5.5% interest rate, and the highest rates have been since 2008, according to ED data. The undergraduate rate...
They also carry a relatively low, fixed interest rate (but higher than the rates on other direct loan types) and offer flexible repayment plans, such as the ability to defer payment until the student graduates. PLUS loans require that the parent applicant pass a credit check (or obtain a co...
Interest is a fee you pay to the lender in exchange for a loan, and lenders use interest proceeds to cover the cost of providing the loan. Loan interest rates may be fixed or variable, and the rate you pay may be based on your credit scores, income, and overall financial health. ...
2023, the fixed interest rate for all direct consolidation loans has resumed. This rate is determined by the weighted average of the statutory interest rates on the loans being consolidated rounded up to the nearest one-eighth of 1%. There is no cap on the consolid...
For the 2024-2025 academic year, student loan interest rates are: Federal loan type Interest rate Direct subsidized and unsubsidized undergraduate loans 6.53% Direct unsubsidized graduate loans 8.08% Direct PLUS loans (for parents or graduate and professional students) 9.08% For private loans, lender...
Higher loan amounts: Loan limits can vary from lender to lender, but you can generally get up to the total cost of attendance, giving you more borrowing power than with the federal government. Chance for low interest rates: If you’re a graduate or professional student or a parent, it ...
Lenders also use your credit score to determine what interest rate you’ll get. Since many high school seniors and college students lack credit, private student loans often require a co-signer, usually a parent or another adult who agrees to pay the loan balance if the student can’t. ...
private loans have higher interest rates, require a parent or guardian to cosign the loan, and sometimes require payments as soon as the first payment is made to the school. Though you can certainly get private student loans for reasonable rates, in general, t...
Type Subsidized or Unsubsidized Interest Rate Undergraduate Student Borrowers Both 5.05% Graduate or Professional Student Borrowers Unsubsidized 6.60% Parent Plus Loan Unsubsidized 7.60% Federal Government Student Loans Maximum Limit With subsidized student federal government student loans, the U.S. ...