What are the Federal Student loan interest rates for 2022-23 and how are they determined?
Interest rates are determined each June 1 for the upcoming award year by adding a fixed percentage to the high yield of the 10-year Treasury note auctioned at the final auction prior to June 1.
The interest rate for federal loans disbursed on or after July 1, 2022 are expected to increase from 3.73% to 4.99%, for Undergraduate Direct loans, from 5.28% to 6.54% for Graduate Professional Direct Unsubsidized Loans and from 6.28% to 7.54% for Parent and Grad PLUS loans. The interest rate caps for these loans are 8.25%, 9.5% and 10.5% respectively.