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Bipartisan Student Loan Certainty Act of 2013

New Formula for Federal Direct Student Loan Interest Rates


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.