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.
The interest rate for any Direct Unsubsidized Loans, and Direct PLUS Loans first disbursed on or after July 1, 2024 and before July 1, 2025 will be 8.08% for the unsubsidized loan and 9.08% for the Graduate PLUS loan. This rate is fixed for the life of the loan.