Quick Summary: Federal student loan interest rates are set each year based on the 10-year Treasury Note auction in May. For 2025-26, undergraduate Stafford loans carry a 6.39% fixed rate, graduate Stafford loans carry a 7.94% fixed rate, and PLUS loans carry an 8.94% fixed rate. Rates have been fixed since 2006-07, but were variable before that.
The interest rates on federal student loans are among the lowest interest rates available to college students. Even with a creditworthy cosigner, interest rates on private student loans are generally higher than those on federal student loans. This article provides a complete history of student loan interest rates by year. If you are seeking this year’s rates, see current federal student loan interest rates.
Traditional college students have thin or nonexistent credit scores and insufficient income to meet minimum income thresholds and maximum debt-to-income ratios. More than 90% of private student loans to undergraduate students and 75% to graduate students require a creditworthy cosigner.
How are federal student loan interest rates determined?
Federal student loans currently offer fixed interest rates that do not change over the life of the loan, though each year’s rate may differ. From the mid-1980s through the mid-2000s, however, interest rates on federal student loans were variable and could be locked in as a fixed rate through consolidation. Before then, the interest rates were fixed.
The interest rates on federal student loans have, at times, depended on the degree level (undergraduate vs. graduate), borrower (student vs. parent), type of loan (subsidized vs. unsubsidized), loan program (FFEL vs. Direct Loan), and loan status (in-school and grace periods, repayment period, deferments, and forbearances).
Interest rates on federal student loans reset annually on July 1, based on the last 10-year Treasury Note auction in May. Previously, interest rates were pegged to the 91-day T-Bill, the 12-month T-Bill, or the Constant Maturity Treasury (CMT).
What are the historical interest rates on federal Stafford loans?
This table shows the historical interest rates on Federal Stafford loans to undergraduate students since 2006-2007.
Academic Year |
Fixed vs. Variable |
Subsidized |
Unsubsidized |
2025-2026 |
Fixed |
6.39% |
6.39% |
2024-2025 |
Fixed |
6.53% |
6.53% |
2023-2024 |
Fixed |
5.50% |
5.50% |
2022-2023 |
Fixed |
4.99% |
4.99% |
2021-2022 |
Fixed |
3.73% |
3.73% |
2020-2021 |
Fixed |
2.75% |
2.75% |
2019-2020 |
Fixed |
4.53% |
4.53% |
2018-2019 |
Fixed |
5.05% |
5.05% |
2017-2018 |
Fixed |
4.45% |
4.45% |
2016-2017 |
Fixed |
3.76% |
3.76% |
2015-2016 |
Fixed |
4.29% |
4.29% |
2014-2015 |
Fixed |
4.66% |
4.66% |
2013-2014 |
Fixed |
3.86% |
3.86% |
2012-2013 |
Fixed |
3.40% |
6.80% |
2011-2012 |
Fixed |
3.40% |
6.80% |
2010-2011 |
Fixed |
4.50% |
6.80% |
2009-2010 |
Fixed |
5.60% |
6.80% |
2008-2009 |
Fixed |
6.00% |
6.80% |
2007-2008 |
Fixed |
6.80% |
6.80% |
2006-2007 |
Fixed |
6.80% |
6.80% |
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This table shows the historical interest rates on Federal Stafford loans to undergraduate students from 1992-1993 through 2005-2006.
Academic Year |
Fixed vs. Variable |
In-School and Grace Periods |
Repayment Period |
2005-2006 |
Variable |
4.70% |
5.30% |
2004-2005 |
Variable |
2.77% |
3.37% |
2003-2004 |
Variable |
2.82% |
3.42% |
2002-2003 |
Variable |
3.46% |
4.06% |
2001-2002 |
Variable |
5.39% |
5.99% |
2000-2001 |
Variable |
7.59% |
8.19% |
1999-2000 |
Variable |
6.32% |
6.92% |
1998-1999 |
Variable |
6.86% |
7.46% |
1997-1998 |
Variable |
7.65% |
8.25% |
1996-1997 |
Variable |
7.65% |
8.25% |
1995-1996 |
Variable |
8.25% |
8.25% |
1994-1995 |
Variable |
7.43% |
7.43% |
1993-1994 |
Variable |
6.22% |
6.22% |
1992-1993 |
Variable |
6.94% |
6.94% |
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This table shows the historical interest rates on the GSL, a predecessor to the Federal Stafford loans.
Effective Dates |
Fixed vs. Variable |
GSL |
7/1/1988 to 9/30/1992 |
Variable |
12M T-bill + 3.25%, 10% Cap |
9/13/1983 to 6/30/1988 |
Fixed |
8% |
1/1/1981 to 9/12/1983 |
Fixed |
9% |
prior to 1/1/1981 |
Fixed |
7% |
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This table shows the historical interest rates on Federal Stafford loans to graduate students since 2006-2007. Graduate students lost eligibility for subsidized Stafford loans starting in 2012-2013.
Academic Year |
Fixed vs. Variable |
Subsidized |
Unsubsidized |
2025-2026 |
Fixed |
NA |
7.94% |
2024-2025 |
Fixed |
NA |
8.08% |
2023-2024 |
Fixed |
NA |
7.05% |
2022-2023 |
Fixed |
NA |
6.54% |
2021-2022 |
Fixed |
NA |
5.28% |
2020-2021 |
Fixed |
NA |
4.30% |
2019-2020 |
Fixed |
NA |
6.08% |
2018-2019 |
Fixed |
NA |
6.60% |
2017-2018 |
Fixed |
NA |
6.00% |
2016-2017 |
Fixed |
NA |
5.31% |
2015-2016 |
Fixed |
NA |
5.84% |
2014-2015 |
Fixed |
NA |
6.21% |
2013-2014 |
Fixed |
NA |
5.41% |
2012-2013 |
Fixed |
NA |
6.80% |
2011-2012 |
Fixed |
6.80% |
6.80% |
2010-2011 |
Fixed |
6.80% |
6.80% |
2009-2010 |
Fixed |
6.80% |
6.80% |
2008-2009 |
Fixed |
6.80% |
6.80% |
2007-2008 |
Fixed |
6.80% |
6.80% |
2006-2007 |
Fixed |
6.80% |
6.80% |
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This table shows the historical interest rates on Federal Stafford loans to graduate students from 1992-1993 through 2005-2006.
Academic Year |
Fixed vs. Variable |
In-School and Grace Periods |
Repayment Period |
2005-2006 |
Variable |
4.70% |
5.30% |
2004-2005 |
Variable |
2.77% |
3.37% |
2003-2004 |
Variable |
2.82% |
3.42% |
2002-2003 |
Variable |
3.46% |
4.06% |
2001-2002 |
Variable |
5.39% |
5.99% |
2000-2001 |
Variable |
7.59% |
8.19% |
1999-2000 |
Variable |
6.32% |
6.92% |
1998-1999 |
Variable |
6.86% |
7.46% |
1997-1998 |
Variable |
7.65% |
8.25% |
1996-1997 |
Variable |
7.65% |
8.25% |
1995-1996 |
Variable |
8.25% |
8.25% |
1994-1995 |
Variable |
7.43% |
7.43% |
1993-1994 |
Variable |
6.22% |
6.22% |
1992-1993 |
Variable |
6.94% |
6.94% |
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What are the historical interest rates on federal PLUS loans?
This table shows the historical interest rates on Federal PLUS loans, including Parent PLUS and Grad PLUS, since 2006-2007. Note that Federal Grad PLUS loans are scheduled to be eliminated for new borrowers starting July 1, 2026, under the One Big Beautiful Bill Act. Graduate students will need to rely on Direct Unsubsidized Loans and private student loans to cover remaining costs.
Academic Year |
Fixed vs. Variable |
Direct |
FFEL |
2025-2026 |
Fixed |
8.94% |
NA |
2024-2025 |
Fixed |
9.08% |
NA |
2023-2024 |
Fixed |
8.05% |
NA |
2022-2023 |
Fixed |
7.54% |
NA |
2021-2022 |
Fixed |
6.28% |
NA |
2020-2021 |
Fixed |
5.30% |
NA |
2019-2020 |
Fixed |
7.08% |
NA |
2018-2019 |
Fixed |
7.60% |
NA |
2017-2018 |
Fixed |
7.00% |
NA |
2016-2017 |
Fixed |
6.31% |
NA |
2015-2016 |
Fixed |
6.84% |
NA |
2014-2015 |
Fixed |
7.21% |
NA |
2013-2014 |
Fixed |
6.41% |
NA |
2012-2013 |
Fixed |
7.90% |
NA |
2011-2012 |
Fixed |
7.90% |
NA |
2010-2011 |
Fixed |
7.90% |
NA |
2009-2010 |
Fixed |
7.90% |
8.50% |
2008-2009 |
Fixed |
7.90% |
8.50% |
2007-2008 |
Fixed |
7.90% |
8.50% |
2006-2007 |
Fixed |
7.90% |
8.50% |
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This table shows the historical interest rates on Federal Parent PLUS loans from 1992-1993 through 2005-2006. Federal Grad PLUS loans were not available before July 1, 2006.
Academic Year |
Fixed vs. Variable |
Direct |
FFEL |
2005-2006 |
Variable |
6.10% |
6.10% |
2004-2005 |
Variable |
4.17% |
4.17% |
2003-2004 |
Variable |
4.22% |
4.22% |
2002-2003 |
Variable |
4.86% |
4.86% |
2001-2002 |
Variable |
6.79% |
6.79% |
2000-2001 |
Variable |
8.99% |
8.99% |
1999-2000 |
Variable |
7.72% |
7.72% |
1998-1999 |
Variable |
8.26% |
8.26% |
1997-1998 |
Variable |
8.98% |
8.98% |
1996-1997 |
Variable |
8.72% |
8.72% |
1995-1996 |
Variable |
8.98% |
8.98% |
1994-1995 |
Variable |
8.38% |
8.38% |
1993-1994 |
Variable |
6.64% |
6.64% |
1992-1993 |
Variable |
NA |
7.36% |
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This table shows the historical interest rates on the SLS, a predecessor to the Federal PLUS loans.
Fixed vs. Variable |
GSL |
|
7/1/1987 to 9/30/1992 |
Variable |
12M T-Bill + 3.10%, cap 11% |
11/1/1982 to 6/30/1987 |
Fixed |
12% |
10/1/1981 to 10/30/1982 |
Fixed |
14% |
1/1/1981 to 9/30/1981 |
Fixed |
9% |
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What are the historical interest rate formulas?
This table shows the interest rate formulas and caps for Federal Stafford loans.
Date Disbursed |
Fixed vs. Variable |
Interest Rate Formula |
Cap |
7/1/2013 to present |
Fixed |
Undergrad: 10-Year Treasury Note + 2.05%
Grad: 10-Year Treasury Note + 3.60% |
8.25% 9.50% |
7/1/2006 to 6/30/2012 |
Fixed |
Interest rates ranged from 3.4% to 4.5% to 5.6% to 6.8% for subsidized loans to undergraduate students. All other interest rates were 6.8%. |
NA |
7/1/1998 to 6/30/2006 |
Variable |
In-School/Grace: 91-day T-bill + 1.7% Repayment: 91-day T-bill + 2.3% |
8.25% |
7/1/1995 to 6/30/1998 |
Variable |
In-School/Grace: 91-day T-bill + 2.5% Repayment: 91-day T-bill + 3.1% |
8.25% |
7/1/1994 to 6/30/1995 |
Variable |
91-day T-bill + 3.1% |
8.25% |
10/1/1992 to 6/30/1994 |
Variable |
91-day T-bill + 3.1% |
9.00% |
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This table shows the interest rate formulas and caps on the interest rates for Federal PLUS loans.
Date Disbursed |
Fixed vs. Variable |
Interest Rate Formula |
Cap |
7/1/2013 to present |
Fixed |
10-Year Treasury Note + 4.60% |
10.50% |
7/1/2010 to 6/30/2012 |
Fixed |
7.9% |
NA |
7/1/2006 to 6/30/2010 |
Fixed |
DL: 7.9% FFEL: 8.5% |
NA |
7/1/1998 to 6/30/2006 |
Variable |
91-day T-bill + 3.1% |
9.00% |
7/1/1994 to 6/30/1998 |
Variable |
CMT + 3.1% |
9.00% |
10/1/1992 to 6/30/1994 |
Variable |
CMT + 3.1% |
10.00% |
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What are the historical fees on federal student loans?
This table shows the historical loan fees on Federal Stafford and Federal PLUS loans. The loan fees since 2013 are due to sequestration, which has increased the baseline loan fees. The statutory fee is 1% for Stafford loans and 4% for PLUS loans, but sequestration under the Budget Control Act of 2011 has increased these amounts each fiscal year since 2013. From October 1, 2020, through October 1, 2026, the sequestration-adjusted fees have remained at 1.057% and 4.228%, respectively.
Year |
Federal Stafford Loan |
Federal PLUS Loan |
2025-2026 (10/1/25-9/30/26) |
1.057% |
4.228% |
2024-2025 (10/1/24-9/30/25) |
1.057% |
4.228% |
2023-2024 (10/1/23-9/30/24) |
1.057% |
4.228% |
2022-2023 (10/1/22-9/30/23) |
1.057% |
4.228% |
2021-2022 (10/1/21-9/30/22) |
1.057% |
4.228% |
2020-2021 (10/1/20-9/30/21) |
1.057% |
4.228% |
2019-2020 (10/1/19-9/30/20) |
1.059% |
4.236% |
2018-2019 (10/1/18-9/30/19) |
1.062% |
4.248% |
2017-2018 (10/1/17-9/30/18) |
1.066% |
4.264% |
2016-2017 (10/1/16 – 9/30/17) |
1.069% |
4.276% |
2015-2016 (10/1/15 – 9/30/16) |
1.068% |
4.272% |
2014-2015 (10/1/14 – 9/30/15) |
1.073% |
4.292% |
2014-2015 (7/1/14 – 9/30/14) |
1.072% |
4.288% |
2013-2014 (12/1/13 – 6/30/14) |
1.072% |
4.288% |
2013-2014 (7/1/13 – 11/30/13) |
1.051% |
4.204% |
2012-2013 |
1.000% |
4.000% |
2011-2012 |
1.000% |
4.000% |
2010-2011 |
1.000% |
4.000% |
2009-2010 |
1.500% |
4.000% |
2008-2009 |
2.000% |
4.000% |
2007-2008 |
2.500% |
4.000% |
2006-2007 |
3.000% |
4.000% |
2005-2006 and before |
4.000% |
4.000% |
ScrollSwipe to see full table
Key Takeaways
- Federal student loan interest rates are fixed for the life of each loan and reset annually on July 1 based on the 10-year Treasury Note auction in May.
- For 2025-26, undergraduate Stafford loans are 6.39%, graduate Stafford loans are 7.94%, and PLUS loans are 8.94%.
- Rates hit a historic low of 2.75% for undergraduates in 2020-21 and have climbed steadily since, though the 2025-26 rates represent a small decrease from 2024-25.
- Before 2006-07, federal student loan rates were variable. Borrowers from that era may still carry variable-rate loans unless they consolidated.
- Origination fees have been stable since October 2020 at 1.057% for Stafford loans and 4.228% for PLUS loans due to sequestration.
- Federal Grad PLUS loans are scheduled to be eliminated for new borrowers starting July 1, 2026.
For the 2025-26 academic year (loans disbursed July 1, 2025, through June 30, 2026), the interest rate is 6.39% for Direct Subsidized and Unsubsidized Loans to undergraduates, 7.94% for Direct Unsubsidized Loans to graduate and professional students, and 8.94% for Direct PLUS Loans to parents and graduate students. See <a href=”https://www.savingforcollege.com/article/current-student-loan-rates”>current federal student loan interest rates</a> for more details.
Congress set the formulas in the Bipartisan Student Loan Certainty Act of 2013. Each spring, the rate is determined by adding a fixed margin to the high yield of the 10-year Treasury Note auction in May. The margins are 2.05% for undergraduate Stafford loans, 3.60% for graduate Stafford loans, and 4.60% for PLUS loans. The resulting rate is fixed for the life of the loan.
No. Federal student loans disbursed since July 1, 2006, carry fixed interest rates that remain the same for the life of the loan. The annual rate reset only applies to newly disbursed loans. Borrowers with older variable-rate loans from the FFEL program may still see their rates change unless they consolidate into a fixed-rate Direct Consolidation Loan.
The lowest federal student loan interest rate in the modern era was 2.75% for undergraduate Direct Subsidized and Unsubsidized Loans during the 2020-21 academic year. This reflected the sharp drop in Treasury yields during the COVID-19 pandemic. During the variable-rate era, some Stafford loan rates fell as low as 2.77% during in-school periods in 2004-05.
Yes. The Higher Education Act sets maximum interest rates that cannot be exceeded, regardless of Treasury yields. The cap is 8.25% for undergraduate Stafford loans, 9.50% for graduate Stafford loans, and 10.50% for PLUS loans. These caps have not been reached since the current formula took effect in 2013.
Origination fees are a percentage of the loan amount that is deducted before funds are disbursed. The statutory fee is 1% for Stafford loans and 4% for PLUS loans. Still, sequestration under the Budget Control Act of 2011 has increased these to 1.057% and 4.228%, respectively, for loans disbursed between October 1, 2020, and October 1, 2026. The borrower is still responsible for repaying the full loan amount, including the portion withheld as origination fees.
