Interest Rates for the Federal Family Education Loan Program (FFELP)
In combination with federal subsidies for low-income borrowers while in school, some tax-deductibility, and additional savings provided by private student loan providers such as Edfinancial Services lenders, 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, 2008
|
Loan Type |
Interest Rate |
| Federal Stafford Loan |
Subsidized Stafford Loan for undergraduates |
6.0% Fixed |
| Subsidized Stafford Loan for graduate and professional students, and Unsubsidized Stafford Loan |
6.8% Fixed |
Federal PLUS Loans
- For parents of undergraduate students
- For graduate and professional students, known as GradPLUS
|
8.5% Fixed |
For the Period July 1, 2008, through June 30, 2009, 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 (T-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 |
1.91% |
1.7% |
8.25% |
3.61% |
| All other periods |
1.91% |
2.3% |
8.25% |
4.21% |
| Federal PLUS Loan - for parents of undergraduate students |
All periods |
1.91% |
3.1% |
9.00% |
5.01% |
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%.