Federal Direct Student Loan 2013-2014 Interest Rates
Congress has passed and the President has signed the Bipartisan Student Loan Certainty Act of 2013, which ties federal student loan interest rates to financial markets. Under this Act, interest rates will be determined each June for new loans being made for the upcoming award year, which runs from July 1 to the following June 30. Each loan will have a fixed interest rate for the life of the loan.
The following table provides the interest rates for new Direct Loans made on or after July 1, 2013, and before July 1, 2014. These rates will apply to all new Direct Loans made during this time, even loans already disbursed before the passage of the Act.
|Effective for Loans With a First Disbursement on or After July 1, 2013|
|Loan Type||Student Grade Level||Cohort||Index Rate||Add-On||2013-2014 Fixed Interest Rate||Interest Rate Cap|
|First Disbursed On/After||First Disbursed Before||10-Year Treasury Note Index|
|Direct Subsidized Loans||Undergraduate Students||7/1/13||7/1/14||1.81%||2.05%||3.86%||8.25%|
|Direct Unsubsidized Loans||Undergraduate Students||7/1/13||7/1/14||1.81%||2.05%||3.86%||8.25%|
|Direct Unsubsidized Loans||Graduate/Professional Students||7/1/13||7/1/14||1.81%||3.60%||5.41%||9.50%|
|Direct PLUS Loans||Parents of Dependent Undergraduate Students and Graduate/Professional Students||7/1/13||7/1/14||1.81%||4.60%||6.41%||10.50%|
|Direct Consolidation Loans||N/A||Consolidation Loan Application Received on or after July 1, 2013||Interest rate remains the weighted average of the interest rates of the loans included in the consolidation, rounded up to the next higher one-eighth of one percent. New law removes the 8.25% cap.|