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 Type2020-2021 Rate2019-2020 Rate
Direct Undergraduate Loan2.75%4.53%
Parent PLUS Loan5.30%7.08%
Direct Graduate Loan4.30%6.08%

Remember that you must submit the FAFSA in order to take out a federal student loan, including the Parent PLUS loan.