Parent PLUS loan Current Interest Rate 2022-23

Parent PLUS loan Current Interest Rate: Parent PLUS is also called Direct Parent PLUS loan. Let us know what is the new interest rate of a direct parent plus loan? And also know the interest rate of federal parent plus loan for 2021-22 and 2022-23.

Parent PLUS loan Current Interest Rate:

The new Direct PLUS Loans interest rates are for new borrowers who take out new loans during the period of 2022-23. The parent plus loan interest rate is determined by federal law each May based on the results of the US Treasury auction. Let us know what is the Current interest rate of direct parent plus loan 2022-23.

The current Interest Rate is 7.54%

For direct parent plus loan first disbursed on or after July 1, 2022, and before July 1, 2023, the interest rate is 7.54%. The interest rate of 7.54 percent for a federal parent plus loan is a fixed interest rate for the life of the loan.

Formula to Calculate parent plus Interest Rate:

Direct parent plus loan interest rates either go up, go down or stay the same depending on the results of the US Treasury auction. Parent PLUS loan Current Interest Rate is calculated under the following formula.

Interest amount= Principal outstanding * Interest rate factor * Number of days since last payment

What are Direct PLUS Loans?

Parent PLUS or Direct plus loans are federal loans that parents of dependent undergraduate students can use to help pay for college or career school. Parent PLUS loans can help pay for education expenses not covered by other financial aid. For more details visit its official website ‘www.studentaid.gov‘.