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Paying for College

Paying Less for Student Loans

Good news for college students: interest rates have dropped on Federal Direct Loans for the 2015-16 academic year. Millions of college students every year borrow Federal Direct Loans, also referred to as Stafford Loans and Ford Loans, the main loan awarded to students who submit the FAFSA® to apply for college financial aid. Depending on loan type, the rates differ:

  • Any undergraduate student borrowing a Federal Direct Student Loan for the 2015-16 academic year will have a 4.29% interest rate. That interest rate applies to both subsidized and unsubsidized loans and is down from last year’s rate of 4.66%.

  • Any graduate student borrowing in the 2015-2016 year will have an interest rate of 5.84%, down from 6.21% last year.

  • Any parent borrowers of the Federal PLUS Loan during the 2015-2016 year will incur a 6.84% interest rate, lower than last year’s 7.21%.

Interest rates on Federal Direct Loans are set each year based on the last 10-year Treasury note auction held every May. You can read more about that process here. And for questions about your loans, connect with us here at MEFA. We can be reached at and (800) 449-MEFA (6332).

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