For Federal Direct Student Loans with a first disbursement date between July 1, 2015 and June 30, 2016, the following rates are fixed for the life of the loan: Direct Subsidized Loans and Direct Unsubsidized Loans for Undergraduate Students 4.29% Direct Unsubsidized Loans for Graduate and Professional Students 5.84%What is the new student loan interest rate for 2015-2016?
The new rate for 2015-2016 academic year is 4.29% for both subsidized and unsubsidized loans, and the cap is 8.25%.Are federal student loans fixed or variable interest?
Federal student loans currently provide fixed interest rates that do not change throughout the life of the loan, although each year’s fixed interest rates may be different. From the mid-1980s through the mid-2000s, however, interest rates on federal student loans were variable and could be locked in as a fixed rate through consolidation.How are student loan interest rates set?
Federal student loan interest rates are set by Congress, and fixed. Private student loans usually have substantially higher interest rates, and the rates fluctuate depending on the financial markets.