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 Department of Education
 AGENCY: Federal Student Aid, Department of Education.
 ACTION: Notice.
 SUMMARY: The Chief Operating Officer for Federal Student Aid announces the interest rates for Federal Direct Stafford/Ford Loans (Direct Subsidized Loans), Federal Direct Unsubsidized Stafford/Ford Loans (Direct Unsubsidized Loans), and Federal Direct PLUS Loans (Direct PLUS Loans) made under the William D. Ford Federal Direct Loan (Direct Loan) Program, Assistance Listing Number 84.268, with first disbursement dates on or after July 1, 2023, and before July 1, 2024.
 FOR FURTHER INFORMATION CONTACT: Travis Sturlaugson, U.S. Department of Education, 830 First Street NE, Washington, DC 20202. Telephone: 202-377-4174 or by email: 
                        *travis.sturlaugson@ed.gov.* If you are deaf, hard of hearing, or have a speech disability and wish to 
                        ( print page 82864)
                        access telecommunications relay services, please dial 7-1-1.


SUPPLEMENTARY INFORMATION: Direct Subsidized Loans, Direct Unsubsidized Loans, Direct PLUS Loans, and Direct Consolidation Loans (collectively referred to as “Direct Loans”) may have either fixed or variable interest rates, depending on when the loan was first disbursed or, in the case of a Direct Consolidation Loan, when the application for the loan was received. Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct PLUS Loans first disbursed on or after July 1, 2006, and Direct Consolidation Loans for which the application was received on or after February 1, 1999, have fixed interest rates that apply for the life of the loan. Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct PLUS Loans first disbursed before July 1, 2006, and Direct Consolidation Loans for which the application was received before February 1, 1999, have variable interest rates that are determined annually and are in effect during the period from July 1 of one year through June 30 of the following year. This notice announces the fixed interest rates for Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct PLUS Loans with first disbursement dates on or after July 1, 2023, and before July 1, 2024, and provides interest rate information for other fixed-rate Direct Loans. Interest rate information for variable-rate Direct Loans is announced in a separate 
                    **Federal Register**
                     notice. Fixed-Rate Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct PLUS Loans First Disbursed on or After July 1, 2013 Section 455(b) of the Higher Education Act of 1965, as amended (HEA) (20 U.S.C. 1087e(b)), includes formulas for determining the interest rates for all Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct PLUS Loans first disbursed on or after July 1, 2013. The interest rate for these loans is a fixed rate that is determined annually for all loans first disbursed during any 12-month period beginning on July 1 and ending on June 30. The rate 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. The calculated interest rate may not exceed a maximum rate specified in the HEA. If the interest rate formula results in a rate that exceeds the statutory maximum rate, the rate is the statutory maximum rate. Loans first disbursed during different 12-month periods that begin on July 1 and end on June 30 may have different interest rates, but the rate determined for any loan is a fixed interest rate for the life of the loan. On May 10, 2023, the United States Treasury Department held a 10-year Treasury note auction that resulted in a high yield of 3.448 percent. Chart 1 shows the fixed interest rates for Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct PLUS Loans first disbursed on or after July 1, 2023, and before July 1, 2024. Chart 1—Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct Plus Loans First Disbursed on or After 07/01/2023 and Before 07/01/2024
Loan type
Borrower type
10-year
                             treasury note 
                             high yield 
                             05/10/2023 
                             (%)
Add-on
                             (%)
Maximum rate
                             (%)
Fixed interest
                             rate 
                             (%)Direct Subsidized Loans
                             Direct Unsubsidized Loans
Undergraduate students
3.448
2.05
8.25
5.50Direct Unsubsidized Loans 1
Graduate and professional students
3.448
3.60
9.50
7.05Direct PLUS Loans
Parents of dependent undergraduate students
                             Graduate and professional students
3.448
4.60
10.50
8.05
 For reference,
                    
                     Chart 2 compares the fixed interest rates for Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct PLUS Loans first disbursed during the period July 1, 2023, through June 30, 2024, with the fixed interest rates for loans first disbursed during each previous 12-month period from July 1, 2013, through June 30, 2023. Chart 2—Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct Plus Loans First Disbursed on or After 07/01/2013 and Before 07/01/2024
First disbursed
Fixed interest rates
                             (%)
**Federal Register**
                             noticeOn/after
Before
Direct
                             Subsidized 
                             Loans, 
                             Direct 
                             Unsubsidized 
                             Loans, 
                             (undergraduate 
                             students)
Direct
                             Unsubsidized 
                             Loans, 
                             (graduate or 
                             professional 
                             students)
Direct PLUS
                             Loans07/01/2023
07/01/2024
5.50
7.05
8.05
N/A.07/01/2022
07/01/2023
4.99
6.54
7.54
87 FR 50326 (August 16, 2022).( print page 82865)07/01/2021
07/01/2022
3.73
5.28
6.28
86 FR 44003 (August 11, 2021).07/01/2020
07/01/2021
2.75
4.30
5.30
85 FR 48229 (August 10, 2020).07/01/2019
07/01/2020
4.53
6.08
7.08
85 FR 2417 (January 15, 2020).07/01/2018
07/01/2019
5.05
6.60
7.60
83 FR 53864 (October 25, 2018).07/01/2017
07/01/2018
4.45
6.00
7.00
82 FR 29062 (June 27, 2017).07/01/2016
07/01/2017
3.76
5.31
6.31
81 FR 38159 (June 13, 2016).07/01/2015
07/01/2016
4.29
5.84
6.84
80 FR 42488 (July 17, 2015).07/01/2014
07/01/2015
4.66
6.21
7.21
79 FR 37301 (July 1, 2014).07/01/2013
07/01/2014
3.86
5.41
6.41
78 FR 59011 (September 25, 2013).
 **Fixed-Rate Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct PLUS Loans First Disbursed on or After July 1, 2006, and Before July 2, 2013** Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct PLUS Loans first disbursed on or after July 1, 2006, and before July 1, 2013, have fixed interest rates that are specified in section 455(b) of the HEA (20 U.S.C. 1087e(b)). Chart 3 shows the interest rates for these loans. Chart 3—Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct Plus Loans First Disbursed on or After 07/01/2006 and Before 07/01/2013
Loan type
Borrower type
First
                             disbursed 
                             on/after
First
                             disbursed 
                             before
Interest
                             rate 
                             (%)Subsidized
Undergraduate students
07/01/2011
07/01/2013
3.40Subsidized
Undergraduate students
07/01/2010
07/01/2011
4.50Subsidized
Undergraduate students
07/01/2009
07/01/2010
5.60Subsidized
Undergraduate students
07/01/2008
07/01/2009
6.00Subsidized
Undergraduate students
07/01/2006
07/01/2008
6.80Subsidized
Graduate or professional students
07/01/2006
2
                             07/01/2012
6.80Unsubsidized
Undergraduate and graduate or professional students
07/01/2006
07/01/2013
6.80PLUS
Graduate or professional students and parents of dependent undergraduate students
07/01/2006
07/01/2013
7.90
 Fixed-Rate Direct Consolidation Loans Section 455(b) 
                    
                     of the HEA specifies that all Direct Consolidation Loans for which the application was received on or after February 1, 1999, have a fixed interest rate that is equal to the weighted average of the interest rates on the loans consolidated, rounded to the nearest higher one-eighth of one percent. For Direct Consolidation Loans for which the application was received on or after February 1, 1999, and before July 1, 2013, the interest rate may not exceed 8.25 percent. However, under section 455(b) of the HEA, the 8.25 percent interest rate cap does not apply to Direct Consolidation Loans made based on applications received on or after July 1, 2013. Chart 4 shows the interest rates for fixed-rate Direct Consolidation Loans. Chart 4—Direct Consolidation Loans Made Based on Applications Received on or After 02/01/1999
Application received
Interest rate
                             (%)
Maximum
                             interest rate 
                             (%)On/after 07/01/2013
Weighted average of the interest rates on the loans consolidated, rounded to the nearest higher one-eighth of one percent
NoneOn/after 02/01/1999 and before 07/01/2013
(same as above)
8.25%
 
 
 *Accessible Format:*
                     On request to the program contact person listed under 
                    **FOR FURTHER INFORMATION CONTACT**
                    , individuals with disabilities can obtain this document in an accessible format. The Department will provide the requestor with an accessible format that may include Rich Text Format (RTF) or text format (txt), a thumb drive, an MP3 file, braille, large print, audiotape, or compact disc, or other accessible format. *Electronic Access to This Document:*
                     The official version of this document is the document published in the 
                    **Federal Register**
                    . You may access the official edition of the 
                    **Federal Register**
                     and the Code of Federal Regulations at 
                    *www.govinfo.gov.*
                     At this site you can view this document, as well as all other documents of this Department published in the 
                    **Federal Register**
                    , in text or Portable Document Format (PDF). To use PDF you must have Adobe Acrobat Reader, which is available free at the site. You may also access documents of the Department published in the 
                    **Federal Register**
                     by using the article search feature at 
                    *www.federalregister.gov.*
                     Specifically, through the advanced search feature at this site, you can limit your search to documents published by the Department. *Program Authority:*20 U.S.C. 1087, 
                    *et seq.* Richard Cordray, Chief Operating Officer, Federal Student Aid.


# Footnotes

1.
    
                         Graduate and professional students are not eligible to receive Direct Subsidized Loans. Back to Citation
 2.
    
                         Effective for loan periods beginning on or after July 1, 2012, graduate and professional students are no longer eligible to receive Direct Subsidized Loans. Back to Citation


[FR Doc. 2023-26052 Filed 11-24-23; 8:45 am] BILLING CODE 4000-01-P