For the second year in a row, interest rates on federal student loans will decrease for the 2020-2021 academic year. This year’s decrease brings rates to record lows. The rates apply to new federal student loans made on or after July 1, 2020, through June 30, 2021. The interest rate is fixed for the life of the loan.
Direct Loans: Undergraduates (Subsidized)
2.75%
4.53%
Undergraduate students only
Subsidized loans are based on financial need as determined by the federal aid application (FAFSA)
For dependent undergraduates:
1st year: $5,500 (max $3,500 subsidized)
2nd year: $6,500 (max $4,500 subsidized)
3rd, 4th, 5th year: $7,500 (max $5,500 subsidized)
Max: $31,000 (max $23,000 subsidized)
Direct Loans: Undergraduates (Unsubsidized)
2.75%
4.53%
Undergraduate students only; all students are eligible regardless of financial need
For dependent undergraduates:
1st year: $5,500 (max $3,500 subsidized)
2nd year: $6,500 (max $4,500 subsidized)
3rd, 4th, 5th year: $7,500 (max $5,500 subsidized)
Max: $31,000 (max $23,000 subsidized)
Direct Loans: Graduate or Professional Students
4.30%
6.08%
Graduate or professional students only; all students are eligible regardless of financial need
Unsubsidized loans only
$20,500 per year; max $138,500
Direct PLUS Loans:
Parents and Graduate Students
5.30%
7.08%
Parents of dependent undergraduate students and graduate or professional students
Unsubsidized loans only
Total cost of education, minus any other aid received by student or parent
Copyright 2006-2019 Broadridge Investor Communication Solutions, Inc. All rights reserved. The information provided is from a third-party source which we believe to be reliable, but we have not independently verified the content. This material is intended for informational purposes only and should not be construed as legal or tax advice and is not intended to replace the advice of a qualified attorney, tax advisor or plan provider.
