Before and During College: Federal Direct Loan Interest Rates To Be Lower for 2020-21

More than 87% of all postsecondary student loans come from the Federal Direct Loan Program (FDLP), and interest rates on these loans will soon be lower. FDLP interest rates on loans made for enrollment periods beginning on or after July 1, 2020 and through June 30, 2020 will be:

Undergraduate Students

  • FDLP Subsidized Loans = 2.75%
  • FDLP Unsubsidized Loans = 2.75%
  • FDLP Parent PLUS Loans = 5.30%

Graduate and Professional Students

  • FDLP Unsubsidized Loans = 4.30%
  • FDLP Graduate and Professional Student Loans = 5.30%

FDLP Loan interest rates are fixed for the life of each loan, meaning you’ll never pay a higher or lower interest rate as long as you still owe any portion of the loan. For example, if you have FDLP Loans for enrollment periods beginning July 2019 through June 2020, those rates will continue to be 4.53% for undergraduate student Subsidized and Unsubsidized Loans, 6.08% for graduate and professional student Unsubsidized Loans, and 7.08% for PLUS Loans.

FDLP interest rates are set annually based on formulas in federal law. College Affordability Solutions will keep you posted as they get reset each year.

Follow the College Affordability Solutions website for weekly articles such as this and about financial strategies for you to use before, during, and after college.

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