New Federal Loans Interest Rates (2020/2021)

[deleted994889]

Hello beautiful people:

Direct Unsub and Grad Plus loan interest rates both fell by 1.779%

Direct Unsubsidized= 4.30% (previously 6.079%)
Direct Grad Plus= 5.30% (previously 7.079%)

This is for disbursements between July 1, 2020 through July 1, 2021 so Fall 2020 and Spring 2021 (and Fall 2021 tuition for M4 students whose tuition is due in June). No news yet on whether Direct Unsub limits have changed.

Origination fees for both remained the same at 1.059% and 4.236%. However, they are set to change in October and will most likely fall as well. I'm not sure why fees are by calendar year while rates are by academic.

Still, its some good news amidst the COVID madness.

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[Engrailed]

Nice! The fed cutting interest rates to zero probably had something to do w it.

In a time when crude oil is trading as low as -$37 (that’s right, negative), seems anything is possible

 

[gonnif]

Nice! The fed cutting interest rates to zero probably had something to do w it.

In a time when crude oil is trading as low as -$37 (that’s right, negative), seems anything is possible

Federal Student Aid - IFAP: 051520InterRatesforDLFirstDisbBetw070120and063021
The interest rate is determined annually for all loans first disbursed during any 12-month period beginning on July 1 and ending on June 30, and is equal to the high yield of the 10-year Treasury notes auctioned at the final auction held before June 1 of that 12-month period, plus a statutory add-on percentage that varies depending on the loan type and, for Direct Unsubsidized Loans, whether the loan was made to an undergraduate or graduate student.

 

[Nugester]

Hello beautiful people:

Direct Unsub and Grad Plus loan interest rates both fell by 1.779%

Direct Unsubsidized= 4.30% (previously 6.079%)
Direct Grad Plus= 5.30% (previously 7.079%)

This is for disbursements between July 1, 2020 through July 1, 2021 so Fall 2020 and Spring 2021 (and Fall 2021 tuition for M4 students whose tuition is due in June). No news yet on whether Direct Unsub limits have changed.

Origination fees for both remained the same at 1.059% and 4.236%. However, they are set to change in October and will most likely fall as well. I'm not sure why fees are by calendar year while rates are by academic.

Still, its some good news amidst the COVID madness.

 

[Zen Arcade]

This will save a lot of med students thousands of dollars (maybe even tens of thousands) over the life of the loan, which is awesome!

 

[Gilakend]

I just mapped out my projected debt with the current interest rate and this pretty much negates a lot of the time I spent using 6.08% for all four years and yet, I couldn't be happier. 1.8% adds up.

 

[chaim123]

Duplicate thread. Post can be followed at New Federal Loans Interest Rates (2020/2021)