The interest rate for Direct Parent PLUS Loans is a fixed rate, depending on the year the loan was originated. The Bipartisan Student Loan Certainty Act of 2013 ties federal student loan interest rates to financial markets. Under this act, interest rates will be determined each June for new loans being made for the upcoming award year, which runs from July 1 to the following June 30.
Each Parent PLUS Loan will have a fixed interest rate for the life of the loan:
- The interest rate for PLUS Loans disbursed between July 1, 2018 - June 30, 2019 is 7.60%.
- The interest rate for PLUS Loans disbursed between July 1, 2019 - June 30, 2020 is 7.08%.
- The interest rate for PLUS Loans disbursed between July 1, 2020 - June 30, 2021 is 5.30%.
The U.S. Department of Education charges a loan fee on the Parent PLUS Loan:
- The loan fee for PLUS Loans disbursed between October 1, 2019 - October 1, 2020 is 4.236% of the principal amount. This fee is deducted proportionately from each disbursement of the PLUS Loan.
