Students Enrolled in Summer 2020 - Be sure to read this regarding Direct Loan interest rates!
rates are determined each June 1 for the upcoming award year by adding a fixed
percentage to the high yield of the 10-year Treasury note auctioned at the
final auction prior to June 1. As a result of the May 12, 2020 auction, the interest
rate for federal loans first disbursed on or after July 1, 2020 are expected to
decrease from 4.53% to 2.75% for undergraduate Direct Loans, from 6.08% to
4.30% for graduate/professional Direct Unsubsidized Loans, and from 7.08% to
5.30% for Parent and Grad PLUS loans. The interest rate caps for these loans
are 8.25%, 9.5%, and 10.5%, respectively.
What does this mean? If you are registered during the summer, you may wish to consider delaying the disbursement of your Direct Loans until after July 1. In order to do this, hold off on accepting the Direct Loans offered. If you already accepted them, you may contact our office to reverse the action and accept them again on July 1 or thereafter. Please be aware, that you are responsible for your university bill, interest and finance charges, living and transportation expenses should you choose to delay the loans. Also, as a reminder, disbursement of aid typically takes place 10 days prior to the beginning of your course(s) start date.