Report Highlights. Federal student loan interest rates don’t change more than once per academic year, but private lenders may update their loans quarterly or even monthly.
- For new undergraduate loans, the current federal interest rate is 6.53%, the highest of the last decade; the lowest was 2.75%.
- Federal loans are available to graduate and professional students with an interest rate of 8.08%; parents can borrow PLUS* loans at 9.08%.
- 90.79% of all student loan debt is federal; the remaining 9.21% is private loan debt.
- Private student loans, including refinance** loans, start as low as 3.45%.
*PLUS Loans are also available to graduate and professional students at the same rate.
**Refinancing is not the same as consolidation; refinancing student loans may reduce interest rates, but consolidating federal loans retains their protections.
| Student Borrowers | Loan Type | Interest Rate |
|---|---|---|
| Undergraduate | Direct Subsidized & Unsubsidized | 6.53% |
| Graduate & Professional | Direct Unsubsidized | 8.08% |
| Parent, Graduate & Professional | PLUS | 9.08% |
Federal Student Loan Interest Rates
Federal interest rates are fixed with the percentage rate adjusted every year on July 1st. Stafford Loans distributed prior to July 1, 2006 have variable interest rates.
- Student loan starting fixed interest rates hit historic lows for the 2020-2021 academic year (2.75% for undergraduates).
- Subsidized federal Stafford Loans hit their record lowest variable interest rate in 2012 (1.72%).
- 15.38% is the average 2023-24 to 2024-25 year-over-year (YoY) growth rate among all loan types.
- All federal loan interest rates were temporarily set to 0% from March 13, 2020 to September 1, 2023.
- Between 2023-24 and 2024-25, interest rates for undergraduate students increased 28.2% faster than those for direct unsubsidized graduate and professional loans.
Undergraduate Loan Interest Rates
Federal loans for undergraduates have the lowest interest rates (compared to graduate and parent loans).
- 4.83% is the interest rate for undergraduates in an average† year.
- Between 2023-24 and 2024-25, undergraduate federal student loan interest rates rose 18.73%.
- Interest rates increased 1.48 percentage points from 2023-24 to 2024-25 (from 5.05% to 6.53%).
- From 2020-21 to 2024-25, federal student loan interest rates for undergraduates increased 137.5%, equivalent to 3.78 percentage points (from 2.75% to 6.53%).
†The average of annual interest rates from 2005-06 to 2024-25.
| First Disbursement Date | Interest Rates |
|---|---|
| 7/1/24–6/30/25 | 6.53% |
| 7/1/23–6/30/24 | 5.50% |
| 7/1/22–6/30/23 | 4.99% |
| 7/1/21–6/30/22 | 3.73% |
| 7/1/20–6/30/21 | 2.75% |
| 7/1/19–6/30/20 | 4.53% |
| 7/1/18–6/30/19 | 5.05% |
| 7/1/17–6/30/18 | 4.45% |
| 7/1/16–6/30/17 | 3.76% |
| 7/1/15–6/30/16 | 4.29% |
| 7/1/14–6/30/15 | 4.66% |
Historical Federal Interest Rates
While the earliest federal student loan programs date to 1944, they were only available to military veterans until 1958.
- In the 21st century, undergraduate student loan interest rates have not surpassed 6.80%.
- From 1988 to 1992, undergraduate student loans had an 8.00% interest rate while borrowers were in school; after graduation, the interest rate jumped to 10.00%.
- Student loan interest rates were as high as 10% in 1969.
- In 1965, student loan interest rates were capped at 6.00%.
| First Disbursement Date | Interest Rates†† |
|---|---|
| 7/1/13–6/30/14 | 3.86% |
| 7/1/12–6/30/13 | 3.40% |
| 7/1/11–6/30/12 | 4.50% |
| 7/1/10–6/30/11 | 4.50% |
| 7/1/09–6/30/10 | 5.60% |
| 7/1/08–6/30/09 | 6.00% |
| 7/1/07–6/30/08 | 6.80% |
| 7/1/06–6/30/07 | 6.80% |
| 7/1/05–6/30/06 | 5.77% |
| 7/1/04–6/30/05 | 3.92% |
| 7/1/03–6/30/04 | 2.66% |
| 7/1/02–6/30/03 | 2.99% |
| 7/1/01–6/30/02 | 3.83% |
| 7/1/00–6/30/01 | 6.83% |
| 7/1/99–6/30/00 | 6.93% |
| 7/1/98–6/30/99 | 6.18% |
| 7/1/97–6/30/98 | 7.54% |
| 7/1/96–6/30/97 | 7.55% |
| 7/1/95–6/30/96 | 7.64% |
| 7/1/94–6/30/95 | 8.26% |
| 7/1/93–6/30/94 | 6.33% |
| 7/1/92–6/30/93 | 6.17% |
††Loans disbursed after June 30, 2006 have fixed interest rates while loans disbursed between July 1, 1992 and June 30, 2006 have variable rates; the variable rates published here are annual averages.
Graduate, Professional, & Parent Rates
Interest rates for parents and graduate students haven’t fallen as quickly as loans for undergraduates.
- Interest rates for Direct Unsubsidized Loans for graduate and professional students increased 14.61% between the 2023-24 and 2024-25 academic years.
- Direct Unsubsidized Loans for graduate or professional borrowers increased interest rates 1.03 percentage points, from 7.05% to 8.08%.
- Interest rates for PLUS Loans for parents and for graduate and professional students increased 12.80% between 2023-24 than in 2024-25.
- PLUS Loans for parents, graduate or professional borrowers increased interest rates 1.03 percentage points, from 8.05% to 9.08%
| First Disbursement Date | Unsubsidized Loans for Graduate and Professional Borrowers‡ | PLUS Loans for Parents, Graduate, and Professional Borrowers |
|---|---|---|
| 7/1/24–6/30/25 | 8.08% | 9.08% |
| 7/1/23–6/30/24 | 7.05% | 8.05% |
| 7/1/22–6/30/23 | 6.54% | 7.54% |
| 7/1/21–6/30/22 | 5.28% | 6.28% |
| 7/1/20–6/30/21 | 4.30% | 5.30% |
| 7/1/19–6/30/20 | 6.08% | 7.08% |
| 7/1/18–6/30/19 | 6.60% | 7.60% |
| 7/1/17–6/30/18 | 6.00% | 7.00% |
| 7/1/16–6/30/17 | 5.31% | 6.31% |
| 7/1/15–6/30/16 | 5.84% | 6.84% |
| 7/1/14–6/30/15 | 6.21% | 7.21% |
| 7/1/13–6/30/14 | 5.41% | 6.41% |
| 7/1/12–6/30/13 | 6.80% | 7.90% |
| 7/1/11–6/30/12‡‡ | 6.80% | NA |
| 7/1/10–6/30/11 | 6.80% | NA |
| 7/1/09–6/30/10 | 6.80% | 8.50% |
| 7/1/08–6/30/09 | 6.80% | 8.50% |
| 7/1/07–6/30/08 | 6.80% | 8.50% |
| 7/1/06–6/30/07 | 6.80% | 8.50% |
‡Direct Unsubsidized Loans and Unsubsidized Federal Stafford Loans for Graduate or Professional Borrowers.
‡‡Loans disbursed on or before June 30, 2012 were subsidized.
Private Loan Interest Rates
Some private student lenders offer APRs lower than the current federal rate; few borrowers qualify for these lowest rates, however.
- Private student loan interest rates generally range from 3.45% to 16.24% as of January 2025.
- The lowest advertised rates usually include any available discounts, including the most common: a 0.25% rate reduction for enrolling in automatic payments.
- The average fixed interest rate on a private loan was 9.66% in 2017; the average variable rate was 7.81%.
For more information about private lenders, see our report on Student Loan Refinancing.
Sources
- U.S. Department of Education, Office of Federal Student Aid
- Federal Reserve Board of Governors, Consumer Credit – G.19
- ConsumersAdvocate.org, Best Student Loans
- Congressional Budget Office, The Volume and Repayment of Federal Student Loans: 1995 to 2017
- Indiana University School of Medicine, Are Federal Student Loan Interest Rates Too High?
- Federal Reserve Bank of St. Louis, Federal Reserve Economic Data
- Abilene Christian University, Student Loans: A Helpful History and Look Forward
- National Consumer Law Center Digital Library, Student Loan Law
- U.S. Department of Education, Education Resources Information Center