It's a perfect time to attend college. The interest rates for Stafford loans are continuing to drop. In 2006, the interest rate for a fixed loan was 6.8%.
Stafford loans carry a fixed rate throughout the life of the loan. The rate may depend on your year in school when the loan is disbursed and whether you are a dependent or independent student at that time.
The interest rates for subsidized Stafford loans for undergraduate students are:
For loans first disbursed July 1, 2006–June 30, 2008, the interest rate is fixed at 6.8%.
For loans first disbursed July 1, 2008–June 30, 2009, the interest rate is fixed at 6%.
For loans first disbursed July 1, 2009–June 30, 2010, the interest rate is fixed at 5.6%.
For loans first disbursed July 1, 2010–June 30, 2011, the interest rate is fixed at 4.5%.
For loans first disbursed July 1, 2011–June 30, 2012, the interest rate is fixed at 3.4%.
For loans first disbursed on or after July 1, 2012, the interest rate is fixed at 6.8%.
* For all subsidized Stafford loans disbursed to graduate and professional students, the interest rate is fixed at 6.8%.
* For all unsubsidized Stafford loans disbursed to undergraduates and graduate students, the interest rate is fixed at 6.8%.
* The interest rate on Stafford loans first disbursed on or after July 1, 1998 but before July 1, 2006 is variable and may change on July 1 of each year, but will never exceed 8.25%. The rate is based on:
o The 91-day T-bill rate +1.70% during repayment periods.
* Starting July 1, 2009, the interest rate on variable rate loans during school, grace and deferment periods is 1.88%.
* The 91-day T-bill rate +2.30% during repayment periods.
* Starting July 1, 2009, the interest rate on variable rate loans in repayment is 2.48%.
