The May 2020 Treasury auction has taken place, which means now we know what student loan interest rates will be for the 2020-2021 school year. Interest rates on all student loans will be 1.78% lower during the coming school year than they are this year, because each loan type’s interest rate is a fixed markup from the 10-year Treasury at the May auction. This year, the rate plunged to 0.70%. Interest rates for the coming year are:
| Loan Type | 2020-2021 Rate | 2019-2020 Rate |
| Direct Undergraduate Loan | 2.75% | 4.53% |
| Parent PLUS Loan | 5.30% | 7.08% |
| Direct Graduate Loan | 4.30% | 6.08% |
Remember that you must submit the FAFSA in order to take out a federal student loan, including the Parent PLUS loan.