Fed Funds: 5.33%30Y FRM: 6.84%10Y Treasury: 4.42%Avg CC APR: 21.47%SOFR: 5.31%Prime Rate: 8.50%BTC: —
Fed Funds: 5.33%30Y FRM: 6.84%10Y Treasury: 4.42%Avg CC APR: 21.47%SOFR: 5.31%Prime Rate: 8.50%BTC: —
Government Backed

Federal Direct Subsidized/Unsubsidized — Federal Undergrad Review

Federal Direct Subsidized/Unsubsidized offers federal undergrads at 6.39% APR (fixed) as of June 2026.

APR
6.39%
APR range
6.39%
Rate type
fixed
Category
Federal Undergrad
Origination fee
1.06%

Overview

Federal Direct Subsidized/Unsubsidized's federal undergrad is currently priced at 6.39% APR. 2025-26 rate. No credit check. Income-driven repayment available..

Federal student loan rates are set annually by formula (10-year Treasury auction + a statutory margin). They cannot be negotiated. Federal loans include borrower protections — income-driven repayment, deferment, PSLF — that private loans don't offer.

Compare Federal Direct Subsidized/Unsubsidized against the alternates below for June 2026.

Pros

  • +6.39% APR is competitive for federal undergrads
  • +Federal borrower protections (IDR, PSLF, deferment)
  • +Transparent fee disclosure

Cons

  • −Cannot be negotiated — rate is set by formula
  • −Best rates require excellent credit and income
  • −1.06% origination fee

How it compares

Federal Direct Unsubsidized (Grad) — Federal Grad
APR
7.94%
Federal Direct PLUS — Federal PLUS
APR
8.94%
SoFi — Student Loan Refinance
APR
4.49–9.99%

How we review

We review student loans using verified rate data and lender disclosures. Rankings prioritize rate, fees, terms, and institutional safety — not affiliate payout. Read the full methodology.