Interest and Fees
For more information on Federal Direct Student Loan interest rates and origination fees, please visit https://studentaid.gov/understand-aid/types/loans/interest-rates.
Common Interest Questions
Q. When does interest accrue on my student loan?
A. It depends on the type of loan and the status of the loan.
- Subsidized loans do not accrue interest until loan repayment begins, whereas unsubsidized loans accrue interest from when the loan is disbursed.
- On Direct Unsubsidized student loans, PLUS loans, and the unsubsidized portion of a Consolidation loan, interest accrues in all statuses beginning from the day it was disbursed until the date it is paid in full.
- Direct Subsidized loans accrue interest during a forbearance and while in repayment. A Direct Subsidized Loan does not accrue interest while in school, during the grace period or in a deferment period.
- Interest accrues on a daily basis. Factors such as the number of days between your last payment, the interest rate, and the amount of your loan balance determine the amount of interest that accrues each month.
Q. How is the Assessed Fee computed on my student loan?
A. In addition to interest, all federal direct student loans have an origination fee. This fee reduces the amount that disburses to a students account. For example, if a student borrows $2,000 with a 1% orgination fee, only $1,980 will disburse to the student's account.