Interest Rates
William D. Ford Federal Direct Loan Program
Fixed interest rates for the 2012-2013 award year
for loans disbursed July 2012 through June 2013
| Federal Stafford Subsidized Loan |
| During repayment |
3.40% |
| Federal Stafford Unsubsidized Loan |
| At the time of disbursement |
6.80% |
| Federal PLUS Loan |
| At the time of disbursement |
7.90% |
The Department of Education will charge a 1.5% loan origination fee deducted from each loan disbursement for the process of the loan. Direct Loan borrowers receive an interest rate rebate of 1.0%, reducing the up front fee to 0.5%. Upon entering repayment, borrowers must make their first 12 loan payments on time to keep the benefit. This entire fee goes to the government to help reduce the cost of the loans.