Let us know what is the Current interest rate of the parent plus loan in 2023.
Parent PLUS Loan New Rate 2023:
Direct PLUS Loans is a federal loan that families of students who are dependent are able to make use of to finance college or a vocational school.
For direct parent plus loan first disbursed on or after July 1, 2022, and before July 1, 2023, the interest rate is 7.54%.
This interest rate is 7.54 percent for federal parents and the loan will be a set rate for the entire term of the loan.
The interest rate for the parent plus loan rate is set by federal law every May, based on the outcomes from the US Treasury auction.
Direct parent and rate of interest on loans can either increase, decrease, or stay the same, based on the outcome from auctions at the US Treasury auction.
Formula to Calculate Interest Rate:
Principal outstanding x Interest rate factor x Number of days since last payment = Interest amount
The eligibility criteria are that you have to be the adoptive or biological parent, and not have a negative credit record.
The newly introduced Direct PLUS loan rates are only applicable to new borrowers who apply for new loans in the time between 2022 and 23.