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Home College Loans Federal Student Loans Parent PLUS Loans Interest Rates and Fees on PLUS Loans

Interest Rates and Fees on Parent PLUS Loans

Interest rates on PLUS Loans are fixed. The current interest rates for new PLUS Loans in 2020-2021 are 5.30% for parents of undergraduate students (Parent PLUS Loans) and for graduate students (Grad PLUS Loans). 

student loan interest rates for May 2020

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Parent PLUS Loan Interest Rates

Note: Interest rates on Parent PLUS and Grad PLUS Loans are the same.

Academic Year Direct PLUS Loans
2020-2021 5.3%
2019-2020  7.08%
2018-2019  7.6%
2017-2018  7.0%
2016-2017  6.31%
2015-2016  6.84%
2014-2015 7.21%
2013-2014 6.41%

Loan Disbursement and Default Fees

Loan disbursement and default fees are effectively a form of up-front interest. Assuming a 10-year repayment term, a 4% fee is the equivalent of an increase in the interest rate of about seven-eighths to one percentage point. Assuming a 30-year repayment term, a 4% fee is the equivalent of an increase in the interest rate of about one-third to half a percentage point. 

 
  • Interest Rates
    • Fixed as low as: 4.25% APR1
    • Variable as low as: 1.25% APR1
  • Interest Rates
    • Fixed as low as: 3.54% APR1
    • Variable as low as: 1.24% APR1
  • Interest Rates
    • Fixed: 4.24% APR - 12.99% APR3
    • Variable: 1.12% APR - 12.37% APR3

The relative impact of a fee is greater with a shorter repayment term or if the borrower prepays the loan, since the fee will be amortized over less time. This is why borrowers who plan to pay off a loan early may wish to avoid up-front fees, if possible.

Fees on PLUS Loans

History of fees on plus loans
Year Total Loan Fees
Oct. 1, 2020 - Sept. 30, 2021 4.228%
Oct. 1, 2019 - Sept. 30, 2020 4.236% 
Oct. 1, 2018 - Sept. 30, 2019 4.248%
Oct. 1, 2017 - Sept. 30, 2018 4.264% 
Oct. 1, 2016 - Sept. 30, 2017 4.276%
Oct. 1, 2015 - Sept. 30, 2016 4.272%
Oct. 1, 2014 - Sept. 30, 2015 4.292%
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