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Interest Rates Rise on Federal Student Loans for 2018-2019

| July 03, 2018
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Interest rates on federal student loans are set to rise for the second year in a row. This table shows the interest rates for new loans made on or after July 1, 2018, through June 30, 2019. The interest rate is fixed for the life of the loan.

New rate 2018-2019Old rate 2017-2018Available toBorrowing limits

Direct Stafford Loans: Subsidized


Undergraduates

5.045%

4.45%

Undergraduate students only


Subsidized loans are based on financial need as determined by the federal aid application (FAFSA)

For dependent undergraduates:


1st year: $5,500 ($3,500 subsidized)


2nd year: $6,500 ($4,500 subsidized)


3rd, 4th, 5th year: $7,500 ($5,500 subsidized)


Max: $31,000 ($23,000 subsidized)

Direct Stafford Loans: Unsubsidized


Undergraduates

5.045%

4.45%

Undergraduate students only; all students are eligible regardless of financial need

For dependent undergraduates:


1st year: $5,500 ($3,500 subsidized)


2nd year: $6,500 ($4,500 subsidized)


3rd, 4th, 5th year: $7,500 ($5,500 subsidized)


Max: $31,000 ($23,000 subsidized)

Direct Stafford Loans: Unsubsidized


Graduate or Professional Students

6.595%

6%

Graduate or professional students only; all students are eligible regardless of financial need


Unsubsidized loans only

$20,500 per year (unsubsidized only); max $138,500 ($65,500 subsidized)

Direct PLUS Loans:


Parents and Graduate or Professional Students

7.595%

7%

Parents of dependent undergraduate students and graduate or professional students


Unsubsidized loans only

Total cost of education, minus any other aid received by student or parent

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