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Tip of the Week

May 11, 2022

Interest rates on the rise

Interest rates are on the rise, and student loan interest rates are no exception.

On May 11, the U.S. Treasury announced the May 10-year Treasury Bill auction results which helps determine the interest rates for Direct Loans first disbursed between July 1, 2022 and June 30, 2023.

The unofficial rates on loans disbursed next year are as follows:

• Direct Subsidized Loans and Direct Unsubsidized Loans for Undergraduate Students - 4.99% (up from 3.73%)
• Direct Unsubsidized Loans for Graduate and Professional Students - 6.54% (up from 5.28%)
• Direct PLUS Loans for Parents of Dependent Undergraduate Students and for Graduate or Professional Students - 7.54% (up from 6.28%)

The interest rate is determined annually for all loans first disbursed during any 12-month period beginning on July 1 and ending on June 30, and is equal to the high yield of the 10-year Treasury notes auctioned at the final auction held before June 1 of that 12-month period, plus a statutory add-on percentage that varies depending on the loan type and, for Direct Unsubsidized Loans, whether the loan was made to an undergraduate or graduate student. Loans first disbursed during different 12-month periods may have different interest rates, but the rate determined for any loan is a fixed interest rate for the life of the loan.

Until August 31, 2022, interest rates on all Direct Loans are temporarily set at 0 percent due to the COVID-19 emergency relief period. Once this relief ends, the new rates will be effective for loans first disbursed on or after July 1, 2022.

Mapping Your Future will be updating counseling sessions, website content, the online interest rate chart, and the interest rate chart handout in the Member resources section of the Access Area.

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Mapping Your Future^®, Inc.
P.O. Box 1017, Lake Dallas, TX 75065
(800) 374-4072