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The interest rates for Federal student loans are set by federal regulations. Over the years, these regulations have changed; therefore, if students received a Federal Stafford or PLUS loan in the past, their interest rate on those existing loan(s) may vary from their more current loan(s). Students should contact the holder of their loan(s) for information regarding current interest rate(s).
The current interest rates indicated below are effective as of July 1, 2009. For a more detailed interest rate breakdown by loan disbursement date and/or for loans that fall under various provisions and caps, refer to the interest rate charts provided by the U.S. Department of Education (ED).
Current Interest Rates for Federal Stafford and PLUS loans
Federal Stafford and PLUS loans disbursed on or after July 1, 2009 have the fixed interest rates indicated below.
Federal Stafford Loans:
- 5.6% subsidized undergraduate
- 6.8% subsidized graduate
- 6.8% unsubsidized undergraduate and graduate
Federal PLUS Loans:
8.5%
Federal Consolidation Loans:
The interest rate is the weighted average of the interest rates on the loans being consolidated, rounded up to the nearest 1/8th of one percent. The interest rate may not exceed the maximum rate of 8.25%.
Interest Rates for Federal Stafford and PLUS loans disbursed before July 1, 2006
Federal Stafford and PLUS loans disbursed on or before June 30, 2006 have a variable interest rate that is adjusted annually on July 1 based on the bond equivalent rate of the 91-day Treasury-Bill (T-bill) auctioned prior to June 1 of that year. A variable interest rate means that the interest rate will fluctuate throughout the life of the loan.
Subsidized and Unsubsidized Federal Stafford Loans:
1.88% - while the borrower is in school and during grace and deferment periods
2.48% - during repayment and forbearance
Federal PLUS Loans:
3.28%
Federal Consolidation Loans:
The interest rate is the weighted average of the interest rates on the loans being consolidated, rounded up to the nearest 1/8th of one percent. The interest rate may not exceed the maximum rate of 8.25%.
The interest rate on subsidized Federal Stafford loans for undergraduate students will be gradually reduced over a period of four years, as shown below:
- Loans first disbursed 7/1/09 through 6/30/10 - fixed rate of 5.6%
- Loans first disbursed 7/1/10 through 6/30/11 - fixed rate of 4.5%
- Loans first disbursed 7/1/11 through 6/30/12 - fixed rate of 3.4%
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