Federal Register / Vol. 86, No. 152 / Wednesday, August 11, 2021 / Notices 44003 

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Program Authority: 20 U.S.C. 1071 et 

seq. 

Richard Cordray, 

Chief Operating Officer, Federal Student Aid. 

[FR Doc. 2021–17054 Filed 8–10–21; 8:45 am] 

BILLING CODE 4000–01–P 

DEPARTMENT OF EDUCATION 

Annual Notice of Interest Rates for 

Fixed-Rate Federal Student Loans 

Made Under the William D. Ford 

Federal Direct Loan Program 

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, 

2021, and before July 1, 2022. 

FOR FURTHER INFORMATION CONTACT: 

Travis Sturlaugson, U.S. Department of 

Education, 830 First Street NE, 11th 

Floor, Washington, DC 20202. 

Telephone: (202) 377–4174 or by email: 

travis.sturlaugson@ed.gov. 

If you use a telecommunications 

device for the deaf (TDD) or a text 

telephone (TTY), call the Federal Relay 

Service (FRS), toll free, at 1–800–877– 

8339. 

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, 

2021, and before July 1, 2022, 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 addon 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 12, 2021, the United States 

Treasury Department held a 10-year 

Treasury note auction that resulted in a 

high yield of 1.684 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, 

2021, and before July 1, 2022. 

CHART 1—DIRECT SUBSIDIZED LOANS, DIRECT UNSUBSIDIZED LOANS, AND DIRECT PLUS LOANS FIRST DISBURSED ON OR

AFTER 07/01/2021 AND BEFORE 07/01/2022 

Loan type Borrower type 

10-year treasury note high 

yield 05/12/ 

2021 

(%) 

Add-on 

(%) 

Maximum rate 

(%) 

Fixed interest 

rate 

(%) 

Direct Subsidized Loans .... Undergraduate students ................................. 1.684 2.05 8.25 3.73 

Direct Unsubsidized Loans ......................................................................... ........................ ........................ ........................ ........................

Direct Unsubsidized Loans1 Graduate and professional students ............... 1.684 3.60 9.50 5.28 

Direct PLUS Loans ............ Parents of dependent undergraduate students.1.684 4.60 10.50 6.28 

Graduate and professional students.

1Graduate and professional students are not eligible to receive Direct Subsidized Loans. 

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, 2021, through 

June 30, 2022, with the fixed interest 


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44004 Federal Register / Vol. 86, No. 152 / Wednesday, August 11, 2021 / Notices 

rates for loans first disbursed during each previous 12-month period from 

July 1, 2013, through June 30, 2021. 

CHART 2—DIRECT SUBSIDIZED LOANS, DIRECT UNSUBSIDIZED LOANS, AND DIRECT PLUS LOANS FIRST DISBURSED ON OR

AFTER 07/01/2013 AND BEFORE 07/01/2022 

First disbursed Fixed interest rates 

(%) 

Federal Register Notice 

On/after Before 

Direct subsidized loans 

Direct Unsubsidized loans 

(undergraduate students) 

Direct unsubsidized loans 

(graduate or 

professional 

students) 

Direct PLUS 

loans 

07/01/2021 ................................ 07/01/2022 3.73 5.28 6.28 N/A 

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-tate 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 3.40 

Subsidized .............................. Undergraduate students ......................................................... 07/01/2010 07/01/2011 4.50 

Subsidized .............................. Undergraduate students ......................................................... 07/01/2009 07/01/2010 5.60 

Subsidized .............................. Undergraduate students ......................................................... 07/01/2008 07/01/2009 6.00 

Subsidized .............................. Undergraduate students ......................................................... 07/01/2006 07/01/2008 6.80 

Subsidized .............................. Graduate or professional students ......................................... 07/01/2006 07/01/2012 2 6.80 

Unsubsidized .......................... Undergraduate and graduate or professional students ......... 07/01/2006 07/01/2013 6.80 

PLUS ....................................... Graduate or professional students and parents of dependent undergraduate students.07/01/2006 07/01/2013 7.90 

2Effective for loan periods beginning on or after July 1, 2012, graduate and professional students are no longer eligible to receive Direct Subsidized Loans. 

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 

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..

None 

On/after 02/01/1999 and before 07/01/2013 .......... (same as above) ............................................................................................. 8.25 


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Federal Register / Vol. 86, No. 152 / Wednesday, August 11, 2021 / Notices 44005 

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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. 

[FR Doc. 2021–17056 Filed 8–10–21; 8:45 am] 

BILLING CODE 4000–01–P 

DEPARTMENT OF EDUCATION 

Annual Notice of Interest Rates for 

Variable-Rate Federal Student Loans 

Made Under the William D. Ford 

Federal Direct Loan Program 

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 Loan), Assistance Listing 

Number 84.268, with first disbursement 

dates before July 1, 2006, and for 

Federal Direct Consolidation Loans 

(Direct Consolidation Loans) for which 

the application was received before 

February 1, 1999. The rates announced 

in this notice are in effect for the period 

July 1, 2021, through June 30, 2022. 

FOR FURTHER INFORMATION CONTACT: 

Travis Sturlaugson, U.S. Department of 

Education, 830 First Street NE, 11th 

floor, Washington, DC 20202. 

Telephone: (202) 377–4174 or by email: 

travis.sturlaugson@ed.gov. 

If you use a telecommunications 

device for the deaf (TDD) or a text 

telephone (TTY), call the Federal Relay 

Service (FRS), toll free, at 1–800–877– 

8339. 

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 before July 1, 

2006, and Direct Consolidation Loans 

for which the application was received 

before February 1, 1999, have variable 

interest rates. For these loans, a new rate 

is determined annually and is in effect 

during the period from July 1 of one 

year through June 30 of the following 

year. 

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. 

This notice announces the interest 

rates for variable-rate Direct Loans that 

will apply during the period from July 

1, 2021, through June 30, 2022. Interest 

rate information for fixed-rate Direct 

Loans is announced in a separate notice 

published in the Federal Register. 

Interest rates for variable-rate Direct 

Loans are determined in accordance 

with formulas specified in section 

455(b) of the Higher Education Act of 

1965, as amended (HEA) (20 U.S.C. 

1087e(b)). The formulas vary depending 

on loan type and when the loan was 

first disbursed or, for certain Direct 

Consolidation Loans, when the 

application for the loan was received. 

The HEA specifies a maximum interest 

rate for these loan types. If the interest 

rate formula results in a rate that 

exceeds the statutory maximum rate, the 

rate is the statutory maximum rate. 

Variable-Rate Direct Subsidized Loans, 

Direct Unsubsidized Loans, and Direct 

PLUS Loans 

For Direct Subsidized Loans and 

Direct Unsubsidized Loans with first 

disbursement dates before July 1, 2006, 

and for Direct PLUS Loans with first 

disbursement dates on or after July 1, 

1998, and before July 1, 2006, the 

interest rate is equal to the lesser of— 

(1) The bond equivalent rate of 91-day 

Treasury bills auctioned at the final 

auction held before the June 1 

immediately preceding the 12-month 

period to which the interest rate applies, 

plus a statutory add-on percentage; or 

(2) 8.25 percent (for Direct Subsidized 

Loans and Direct Unsubsidized Loans) 

or 9.00 percent (for Direct PLUS Loans). 

For Direct Subsidized Loans and 

Direct Unsubsidized Loans with first 

disbursement dates on or after July 1, 

1995, and before July 1, 2006, the 

statutory add-on percentage varies 

depending on whether the loan is in an 

in-school, grace, or deferment status, or 

in any other status. For all other loans, 

the statutory add-on percentage is the 

same during any status. 

The bond equivalent rate of 91-day 

Treasury bills auctioned on May 24, 

2021, is 0.015 percent, rounded to 0.02 

percent. 

For Direct PLUS Loans with first 

disbursement dates before July 1, 1998, 

the interest rate is equal to the lesser 

of— 

(1) The weekly average 1-year 

constant maturity Treasury yield, as 

published by the Board of Governors of 

the Federal Reserve System, for the last 

calendar week ending on or before the 

June 26 preceding the 12-month period 

to which the interest rate applies, plus 

a statutory add-on percentage; or 

(2) 9.00 percent. 

The weekly average of the one-year 

constant maturity Treasury yield, as 

published by the Board of Governors of 

the Federal Reserve System, for the last 

calendar week ending on or before June 

26, 2021, is 0.09 percent. 

Variable-Rate Direct Consolidation 

Loans 

A Direct Consolidation Loan may 

have up to three components, 

depending on the types of loans that 

were repaid by the consolidation loan 

and when the application for the 

consolidation loan was received. The 

three components are called Direct 

Subsidized Consolidation Loans, Direct 

Unsubsidized Consolidation Loans, and 

(only for Direct Consolidation Loans 

made based on applications received 

before July 1, 2006) Direct PLUS 

Consolidation Loans. In most cases the 

interest rates for variable-rate Direct 

Subsidized Consolidation Loans, Direct 

Unsubsidized Consolidation Loans, and 

Direct PLUS Consolidation Loans are 

determined in accordance with the same 

formulas that apply to Direct Subsidized 


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