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Bipartisan Student Loan Certainty Act of 2013

New Formula for Federal Direct Student Loan Interest Rates

12-16-2013

The Student Loan Certainty Act was signed into law on Friday, August 9, 2013.  Under the new law, federal student loan interest rates will be tied to the 10-Year Treasury Note Index plus an "add-on."  Interest rates will be established each year for new Direct Loans disbursed between July 1st through the following June 30th.

Federal student loans disbursed between 7/1/13 and 6/30/14, will have the following interest rates, fixed for the life of the loan:

5.41% Federal Direct Unsubsidized Loan

6.41% Federal Direct Graduate PLUS Loan

Law students who borrowed loans that were disbursed between 7/1/06 and 6/30/13 have a fixed 6.8% interest rate for Unsubsidized Loans and a fixed 7.9% interest rate for Graduate PLUS Loans.