The U.S. Department of Education has announced the interest rates for Direct Loans first disbursed between July 1, 2023, and June 30, 2024. The rates have been determined based on the results of the May 2023 Treasury auction. This information was shared through an electronic announcement on the Federal Student Aid (FSA) website.
For Direct Subsidized Loans and Direct Unsubsidized Loans for undergraduate students, the interest rate will be 3.23%, which is an increase from the previous year’s rate of 2.75%. Direct Unsubsidized Loans for graduate and professional students will also have an interest rate of 5.28%, an increase from the previous year’s rate of 4.30%.
Additionally, the interest rate for Direct PLUS Loans, which are available to graduate or professional students and parents of dependent undergraduate students, will be 6.28%, an increase from the previous year’s rate of 5.30%. These interest rates will apply to all new loans disbursed during the specified period. It is important for students and parents to consider these rates when planning for their education financing and loan repayment strategies.
Source: (DL-23-03) Interest Rates for Direct Loans First Disbursed Between July 1, 2023 and June 30, 2024