The new federal student loan rates have been posted and they are lower than the 2014/2015 rates.

Each year the Federal student loan interest rates are set according to the yield of the 10-year U.S. Treasury note plus a fixed percentage.  On May 13, 2015, the U.S. Treasury held the 10-year Treasury note auction, which resulted in a decrease in the interest rate for Federal student loans disbursed on or after July 1, 2015.

Interest rates for subsidized & unsubsidized student loans and Direct Plus loans have been reduced by .37% across the board.

In 2013 the government shutdown threatened a serious increase to student loan rates.   Without a compromise on a new deal, students faced an anticipated interest rate of 6.8% for the 2013 fall semester .  The senate voted 81 to 18 to tie the interest rate to the 10 year treasury note and lowered rates to an astonishing 3.8%.  In 2014 the Stafford loan rates for student loans increased to 4.66% with an origination fee of 1.073%.  This year federal student loan rates are at 4.29% with an origination fee of 1.068%.

Parents are also reaping the benefits of these lower rates.  In 2014 the Direct PLUS loan rates for parents was 6.21% with an origination fee of 4.292%.  The current interest rate for a PLUS loan is 6.84% with an origination fee of 4.272%.

If interest rates were to spike the bill has provisions that will cap student loan rates at 8.25%.




If you would like further information about federal education loans, rates and repayment visit