Loan Management: Interest Rates

Federal Student Loans

The following table provides the interest rates for new Direct Loans made on or after July 1, 2015, and before July 1, 2016. These rates will apply to all new Direct Loans made during this time.


Interest Rate

Direct Unsubsidized Loans (Graduate or Professional Students)


Direct PLUS Loans (Graduate or Professional Students)


Private loans

Most private student loans have a variable interest rate based on either the LIBOR or prime index. The LIBOR (London Interbank Offered Rate) represents what it costs a lender to borrow money. The prime rate originally indicated the rate at which banks lent to their most favored customers. Some variable interest rates may be expressed as a percentage above or below prime rate.

The interest rate and fees on the private loans are based on your credit score. If you are offered the opportunity to apply with a co-signer the lender may be able to offer you a lower interest rate if your co-signer’s credit score is better than yours.

Students have the right and ability to borrow student loan funds using any lender you choose.

Understanding Capitalization

Capitalization occurs when you servicer adds the accrued and unpaid interest to your principal of the loan. Over time this can be expensive. The Financial Aid Office encourages all students to try and pay the interest while in-school.

If you have any questions regarding interest rates on student loans, please contact the financial aid office.