If you will be taking out loans to pay for college, you probably want to know what interest rate you’ll be paying. Unfortunately, the rates for the coming school year are not available yet. They’ll be set based on the 10-Year Treasury Note from the last auction before June 1.

Rates for student loans are the 10-year rate plus a fixed percentage, or margin, as follows:

  • Undergrad direct student loans: 10-Year Treasury + 2.05%
  • Graduate direct student loans: 10-Year Treasury + 3.6%
  • Parent PLUS loans: 10-Year Treasury + 4.6%

For the 2017-2018 school year, those rates came out to 4.45%, 6% and 7%. However, interest rates on the 10-year note have gone up by about 1/2 of 1% since last year, so you should expect interest rates on the loans to be around 5%, 6.5% and 7.5%.

If your aid package includes subsidized loans, those will have the same interest rates as unsubsidized loans; however, no interest accrues during your college years.