06/30/2005
ED Announces Additional Interest Rates

As mentioned in our June 1 NewsFlash, additional interest rate information would be available at the end of June for a few categories of older PLUS and SLS loans with interest rates based on the one-year constant maturity Treasury yield.

Following are the resulting interest rates for these older PLUS and SLS loans, which are effective July 1, 2005, through June 30, 2006. As you will note, this group of PLUS borrowers will see higher interest rates on their student loans.

• 6.10 percent for loans first disbursed on or after October 1, 1992, but before July 1, 1994

• 6.50 percent for loans first disbursed on or after July 1, 1994, but before July 1, 1998 (PLUS only)

Additionally, the 91-day T-bills auctioned for the quarter ending June 30 established the HEAL portion of the Federal consolidation loan interest rate at 5.94 percent.

As a reminder, effective July 1, 2005, the new interest rates for Federal Stafford and Federal PLUS loans (variable rate loans first disbursed on or after July 1, 1998) are as follows:

• 4.70 percent for students who are currently enrolled, within the six-month grace period or in deferment

• 5.30 percent for Federal Stafford borrowers in repayment

• 6.10 percent for Federal PLUS loan borrowers

If you need additional information, you may view ED's memo regarding the new interest rates.