Interest Rates For The Federal Family Education Loan (FFEL) Program
In combination with federal subsidies for low-income borrowers while in school, some tax-deductibility, and additional savings provided by private, student loan providers, borrowers may find that the federal student loan program is the least expensive type of credit available.
For loans first disbursed on or after July 1, 2006
| Loan Type |
Interest Rate |
Federal Stafford Loan
(Subsidized and Unsubsidized) |
6.8% Fixed |
Federal PLUS Loans
- For parents of undergraduate students and
- Graduate and Professional students, known as Grad PLUS
|
8.5% Fixed |
For the Period July 1, 2006, through June 30, 2007 for loans disbursed on or after July 1, 1998 and before July 1, 2006
Interest rates on federal student loans that were first disbursed on or after July 1, 1998 and before July 1, 2006 are adjusted annually on July 1, according to a formula set by Congress that is based on the results of the last Treasury Bill auction in May. The interest rates listed in the table below apply to the above mentioned student and parent loans.
|
Loan Type |
During |
91-day T-Bill Rate |
Additional Sum |
Maximum Rate |
Effective Rate |
Federal Stafford Loan
(Subsidized and Unsubsidized) |
In-school, grace, and deferment periods |
4.84% |
1.7% |
8.25% |
6.54% |
| All other periods |
4.84% |
2.3% |
8.25% |
7.14% |
| Federal PLUS Loan – for parents of undergraduate students |
All periods |
4.84% |
3.1% |
9.00% |
7.94% |
Interest rates for Federal Family Education Loan Program Consolidation Loans
For consolidation loans for which the applications are received on or after October 1, 1998, the interest rate is the weighted average of the interest rates on the loans consolidated, rounded to the nearest higher 1/8th of one percent. The interest rate may not exceed the maximum rate of 8.25%.