Interest rates on Federal Stafford and PLUS loans can either have a fixed interest rate or a variable interest rate. New loans first disbursed on or after July 1, 2006, will have a fixed interest rate.
Therefore, loans disbursed prior to July 1, 2006, will continue to have a variable interest rate that is based on a formula established in the Higher Education Act of 1965, as amended. The interest rate may be adjusted each year on July 1. As a result, the interest rate may change annually, but it will never exceed 8.25 percent for Federal Stafford loans and 9.00 percent for Federal PLUS loans.
Below are the current interest rates for the Federal Family Education Loan Program (FFELP).
2009-10 Interest Rates
July 1, 2009 through June 30, 2010 (Fixed Rate)
Loans first disbursed on or after July 1, 2009
Federal Stafford Loans
5.60% Subsidized - Undergraduate Students
6.80% Subsidized – Graduate Students
6.80% Unsubsidized – Undergraduate and Graduate Students
Federal PLUS Loans
8.50%
2008-09 Interest Rates
July 1, 2008 through June 30, 2009 (Fixed Rate)
Loans first disbursed on or after July 1, 2008
Federal Stafford Loans
6.00% Subsidized - Undergraduate Students
6.80% Subsidized – Graduate Students
6.80% Unsubsidized – Undergraduate and Graduate Students
Federal PLUS Loans
8.50%
Interest Rate History
Loans first disbursed between July 1, 2006 and June 30, 2008 (Fixed Rate)
All Federal Stafford Loans
6.80%
Federal PLUS Loans
8.50%
Loans first disbursed between July 1, 1998 and June 30, 2006 (Variable Rate)
Federal Stafford Loans
3.61% during in-school, grace and deferment
4.21% during repayment
Federal PLUS Loans
5.01%
Additional Interest Rate Information
Download 2008-09 Variable Interest Rate Chart (PDF) New on 7/18/08!
History of Converted Stafford Loan Interest Rates – 8/10% Loans Variable at
10% Rate Only (PDF)New on 7/18/08!
History of Variable Interest Rates – PLUS Loans (PDF)New on 7/18/08!
History of Variable Interest Rates – SLS Loans (PDF)New on 7/18/08!
History of Variable Interest Rates – Non-Converted Stafford Loans (PDF)New on 7/18/08!
History of Variable Interest Rates – Consolidations Loans (PDF)New on 7/18/08!