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2014-15 Interest Rates

The Federal Direct Loan interest rates are variable with the market each year but fixed for the specific loan once it is disbursed. This means the rates will change each year, but once a loan is made it will be fixed for the life of the loan. So, if you are an undergraduate student taking out Stafford Loans for the 2014-15 academic year, your interest rate on those loans will stay at 4.66% for the lifetime of the loan. If the interest rate were to jump up the next year, the interest rate on your 2014-15 Stafford Loan would not change, it would only affect the loans taken out for the 2015-16 academic year.

All loans have a maximum interest rate: UG Stafford 8.25%, Grad Stafford 9.5%, and PLUS 10.5%. This means that the loan interest rates cannot exceed the interest rates listed as of Congress passing the bill.


Loan Type Student Grade Level Loan First Disbursed Between 2014-15 Fixed Interest Rate
Direct Subsidized/ UnsubsidizedLoans

Undergraduate Students

7/1/14 - 7/1/15
Direct Unsubsidized Loans

Graduate/ Professional Students

7/1/14 - 7/1/15
Direct Parent PLUS Loans

Parent of Dependent Undergraduate Students

7/1/14 - 7/1/15
Direct Graduate PLUS Loans Graduate/Professional Students
Direct Consolidation Loans
Consolidation Loan Application Received on or after July 1, 2014
Interest rate remains the weighted average of the interest rates of the loans included in the consolidation, rounded up to the next higher one-eighth of one percent. New law removes the 8.25% cap.