For loans disbursed after July 1, 2013, the interest rate is fixed at 6.41% (disbursement is the payment of the loan proceeds by the lender). As new, fixed interest rate of 7.21% will go into effect on July 1, 2014.
Borrowers are charged, by the federal government, an up-front origination fee of 4.288% of the principal amount of the loan. The fee will be proportionally deducted from each loan disbursement. As of October 1, 2014, the origination fee will increase to 4.292%.