Good news for borrowers! Federal student loan rates have dropped for the upcoming year.
For student loans dispersed between July 1, 2020 and June 30, 2021, the interest rate on Federal Direct Loans (subsidized and unsubsidized) for undergraduates dropped to 2.75% down from 4.53% for the prior year. The interest rate on federal direct loans for graduate school students dropped to 4.3% down from 6.08% the year prior and the interest rate on the Parent PLUS loan fell to 5.3% down from 7.08%.