2025-2026 Interest Rates
Loans first disbursed on, or after July 1, 2025, and prior to July 1, 2026:
Subsidized/Unsubsidized Loan (Undergraduate Students): 6.39%
Unsubsidized Loan (Graduate/Professional Students): 7.94%
PLUS Loan (Parent, and Graduate/Professional students): 8.94%
2024-2025 Interest Rates
Loans first disbursed on, or after July 1, 2024, and prior to July 1, 2025:
Subsidized/Unsubsidized Loan (Undergraduate Students): 6.53%
Unsubsidized Loan (Graduate/Professional Students): 8.08%
PLUS Loan (Parent, and Graduate/Professional students): 9.08%
____________________________________________________________
How Interest Rates are Determined
Federal student loan interest rates are established each year. There are also interest rate caps:
- 8.25% for Direct Subsidized loans and Direct Unsubsidized loans for undergraduate students
- 9.50% for Direct Unsubsidized loans for graduate/professional students
- 10.50 % for Direct PLUS loans (Parent, and Graduate/Professional students)
The interest rates are calculated using a base 10-year Treasury Note Index of 4.342% plus an add-on amount for each loan program
- 2.05% for Direct Subsidized loans and Direct Unsubsidized loans for undergraduate students
- 3.60% for Direct Unsubsidized loans for graduate/professional students
- 4.60% for Direct PLUS loans (Parent, and Graduate/Professional students)
Interest Rates and Rate Accrual
The following table compares interest rates and rate accrual for a $10,000 loan for the 2025-2026 school year:
| Type of Loan | Interest Rates for 2024-25 Academic Year | Daily Accrual while in school | Daily Accrual after 6-month grace period |
|---|---|---|---|
| Federal Direct Stafford Subsidized | 6.39%* | *$0 | $1.77 per day |
| Federal Direct Stafford Unsubsidized (Undergrad) | 6.39% | $1.77 per day | $1.77 per day |
| Federal Direct Stafford Unsubsidized (Graduate) | 7.94% | $2.17 per day | $2.17 per day |
| Federal Direct PLUS (Graduate or Parent) | 8.94% | $2.44 per day | $2.44 per day |
| Alternative Loan | Varies by credit from 4.0% - 20.0% | $1.09 - $4.10 per day | $1.09 - $5.47 per day |
*Subsidized loans do not accrue interest while student is enrolled at least half time or during the 6-month grace period after graduation.
For more information about federal loans, visit the Federal Student Aid website.
__________________________________________________________
Loan Cohort Default Rate
Current Loan Cohort Default Rate:
FY 2021: 0% (Due to the pandemic pause on student payments)
FY 2020: 0% (Due to the pandemic pause on student payments)
FY 2019: 0.9%
FY 2018: 2.9%
FY 2017: 3.7%
Students Receiving Federal Loans: 20%
Median Total Debt After Graduation: $15,000
Typical Monthly Loan Payment: $159 (based on a standard 10 year repayment plan)
Source: Collegescorecard.ed.gov
