Student loan borrowers will see slightly lower interest rates starting July 1 for Direct Loans borrowed on or after July 1, 2025.
The new interest rates were announced by the Department of Education in a May 30 Electronic Announcement. The interest rate is a fixed rate for the life of the loan.
For Direct Loans first disbursed on or after July 1, 2025, and before July 1, 2026, the following rates apply:
- Direct Subsidized and Unsubsidized Loans for Undergraduate Students 6.39% (down from 6.53%)
- Direct Unsubsidized Loans for Graduate and Professional Students 7.94% (down from 8.08%)
- Direct PLUS Loans for Parents of Dependent Undergraduate 8.94% (down from 9.08%)
Students and for Graduate or Professional Students
To help students know the upcoming July 1 interest rates, Mapping Your Future staff will soon be updating several references to interest rates on our website.
