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New Federal Loans Interest Rates (2020/2021)

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PierreMD

Class of 2024 :)
Jul 4, 2019
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  1. Pre-Medical
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

Are your hands dry as well?
Moderator Emeritus
Jun 8, 2019
1,976
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  1. Medical Student
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
 
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gonnif

Rule One: Take a Breath
10+ Year Member
Jul 26, 2009
23,834
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The Big Bad Apple
  1. Non-Student
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.
 
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Nugester

Full Member
2+ Year Member
Jul 4, 2017
841
821
116
  1. Medical Student
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.
:soexcited::soexcited::soexcited::clap::clap::clap:
 
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Gilakend

Full Member
7+ Year Member
Aug 24, 2012
1,698
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  1. Medical Student
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.
 
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