For loans disbursed on July 1, 2014 or by June 30, 2015, the interest rate is fixed at 7.21%. For loans disbursed on July 1, 2013 or by June 30, 2014, the interest rate is fixed at 6.41%.
In addition to interest, the Federal PLUS Loan has a 4.288% origination fee. This fee reduces the amount that disburses to the student’s account. For example, if $5,000 is borrowed under the Federal Direct PLUS Loan program, $214.40 will be deducted from the student’s loan amount and paid directly to the U.S. Department of Education.