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Student loan interest rates headed upward

(May 23, 2014) - Federal student loan interest rates will be higher for the 2014-15 school year compared to 2013-14. The rate on new direct subsidized and unsubsidized loans for undergraduate students is increasing from 3.86% to 4.66%.

The rate on direct unsubsidized loans for graduate/professional students is increasing from 5.41% to 6.21%, while the rate on PLUS loans for parents and graduate/professional students is increasing from 6.41% to 7.21%.

Federal student loans are fixed-rate loans.

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