Summary: Interest rates on new federal Direct Stafford loans are fixed for the life of the loan. For loans taken out for the 2024 - 2025 school year, undergraduate students receive a 6.53% interest rate and graduate students receive a 8.08% interest rate. A fee of 1.057% is deducted from your loan before the funds are sent to your school.
- Federal student loan interest rates are determined by laws and regulations—they’re not random.
- Students demonstrating financial need could be eligible for subsidized loans.
- The government covers the interest on subsidized loans while you’re in school at least half-time, during your grace period, and any approved deferment.
Federal Student Loan Interest Rates for the 2024 - 2025 Academic Year
Interest rates are the same for Direct Subsidized Loans and Direct Unsubsidized Loans (sometimes referred to as Direct Stafford Loans).
Undergraduate Student
Federal Direct Stafford Loan
Interest rate: 6.53% fixed
Origination fee: 1.057% (loans disbursed Oct. 1, 2024 - Sept. 30, 2025)
Graduate Student
Federal Direct Stafford Loan
Interest rate: 8.08% fixed
Origination fee: 1.057% (loans disbursed Oct. 1, 2024 - Sept. 30, 2025)
Private Student Loan Rates
Variable rates starting at:
4.36% APR
Fixed rates starting at:
2.71% APR
Lowest APRs shown for Private Student Loans are available for the most creditworthy applicants for undergraduate loans, and include a 0.25% interest rate reduction while enrolled in automatic payments. Interest rates as of March 4, 2024.
Federal Student Loan Rates
For loans first disbursed July 1, 2024 through June 30, 2025
6.53%
Undergraduate
8.08%
Graduate
9.08%
PLUS Loans
Direct Stafford Loan Interest Rates
| Award Year | Direct Loans (Undergraduate) |
Direct Loans (Graduate) |
Direct PLUS Loans (Parent and Graduate/Professional Student) |
|---|---|---|---|
| 2023-2024 | 5.50% | 7.05% | 8.05% |
| 2022-2023 | 4.99% | 6.54% | 7.54% |
| 2021-2022 | 3.73% | 5.28% | 6.28% |
| 2020-2021 | 2.75% | 4.3% | 5.3% |
| 2019-2020 | 4.53% | 6.08% | 7.08% |
| 2018-2019 |
5.05% |
6.6% |
7.6% |
| 2017-2018 |
4.45% |
6% |
7% |
| 2016-2017 |
3.76% |
5.31% |
6.31% |
| 2015-2016 |
4.29% |
5.84% |
6.84% |
| 2014-2015 |
4.66% |
6.21% |
7.21% |
For loans made up to 2013-2014 award year, it is best to contact the loan servicer to confirm the interest rate.
Fees on Direct Stafford Loans
The current fee on the Direct Stafford Loans is 1.057% * for loans disbursed (funds sent to your school) from Oct. 1, 2024 to Sept. 30, 2025.
| Year |
Total Loan Fees |
|---|---|
| 2020-2024 (10/1/20 - 9/30/24) | 1.057% |
| 2019-2020 (10/1/19 - 9/30/20) | 1.059% |
| 2018-2019 (10/1/18 - 9/30/19) | 1.062% |
| 2017-2018 (10/1/17 - 9/30/18) | 1.066% |
| 2016-2017 (10/1/16 - 9/30/17) | 1.069% |
| 2015-2016 (10/1/15 - 9/30/16) | 1.068% |
| 2014-2015 (10/1/14 - 9/30/15) | 1.073% |
| 2014-2015 (7/1/14 - 9/30/14) | 1.072% |
| 2013-2014 (12/1/13 - 6/30/14) | 1.072% |
How fees affect the total loan cost
Loan fees are basically a form of up-front interest. For example, if your loan has a 10-year repayment term, a 4% fee is the about the same as an increase of about .875% to 1% in the interest rate. If your loan has a 30-year repayment term, a 4% fee is the same as an increase of about .334% to .5% in the interest rate.
Recommendations
- File the FAFSA every year to maintain eligibility for student aid.
- When you compare different types of student loans, make sure you understand the interest rates and fees before you borrow.
- If you’ve hit the limits on federal student loans, but you still need additional funds to complete your education, consider other funding options.
- When you file your federal income taxes, be sure to take the student loan interest deduction. You can deduct up to $2,500 total in federal and private student loan interest each year.
