The Bipartisan Student Loan Certainty Act of 2013 was recently passed by both houses of Congress and signed into law by President Obama. This new legislation establishes a variable/fixed rate for all federal student loans. The interest rate for new loans will be determined each year and based on 'the final auction of 10-year US Treasury Bills prior to June 1' plus 2.05% for Stafford Subsidized and Unsubsidized Undergraduate Loans (T+2.05%) and 4.60% for the parent PLUS Loan (T+4.06%). The interest rate will remain fixed for the life of the loan.
Using this formula, the interest rates for the academic year 2013-2014 will be 3.86% for both the subsidized and unsubsidized Direct Stafford loan and 6.41% for the Parent PLUS loan.