Changes in Federal Student Loan Interest Rates
President Obama signed the Student Loan Certainty Act of 2013 into law on August 9, 2013.
For the 2013-2014 academic year, the interest rates are:
- Undergraduate Students
- Subsidized Loans 3.86%
- Unsubsidized Loans 3.86%
- Graduate Students
- Unsubsidized Loans 5.41%
- Grad PLUS 6.41%
- Parent Loan/PLUS 6.41%
The interest rates have dropped from 2012-2013 in subsidized (6.8%) and in the PLUS and Grad PLUS (7.9%.) Interest rates are retroactive to July 1, 2013.
Interest rates will be revised annually to determine the rate based on the yield of the 10-year Treasury note supplemented by an "add-on" based on undergraduate, graduate or parent status. The interest rate will be fixed and remain at the rate set for the life of the loan.
The Student Loan Certainty Act of 2013 sets loan caps of 8.25% for undergraduate students, 9.5% for graduate students, and 10.5% for graduate students.