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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, 2008. For a more detailed interest rate breakdown by loan disbursement date and/or for loans that fall under various provisions and caps, interest rate charts provided by the U.S. Department of Education (ED).
Current Interest Rates for Federal Stafford and PLUS loans
For loans disbursed on or after July 1, 2008, Federal Stafford and PLUS loans have a fixed interest rate, as indicated below.
Subsidized and Unsubsidized Federal Stafford Loans:
- 4.5% subsidized undergraduate
- 6.8% subsidized graduate
- 6.8% unsubsidized undergraduate and graduate
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 7/1/10 through 6/30/11 - fixed rate of 4.5%
- Loans first disbursed 7/1/11 through 6/30/12 - fixed rate of 3.4%
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 before July 1, 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.
The variable interest rates in effect on these loans between July 1, 2010 through June 30, 2011 are indicated below.
Subsidized and Unsubsidized Federal Stafford Loans:
1.87% - while the borrower is in school and during grace and deferment periods
2.47% - during repayment and forbearance
Federal PLUS Loans:
3.27%
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%.
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