INTEREST RATES FOR STAFFORD AND PLUS LOANS EFFECTIVE

JULY 1, 2011

Fixed Rates:

Direct Loan and FFEL Program Loans First Disbursed on/after July 1, 2006

NOTE:  Effective July 1, 2010, the only loans that can be made are Direct Loans.

Note:  Beginning with loans first disbursed on or after July 1, 2006, the interest rate on all Stafford Loans in both the FFEL Program and in the Direct Loan Program was fixed at 6.8 percent.  That rate continues to apply to all unsubsidized Stafford Loans and to subsidized Stafford Loans for graduate and professional students.  Starting with loans first disbursed between July 1, 2008 and June 30, 2009, the interest rate on subsidized Stafford Loans for undergraduate students was reduced to 6.0 percent, with additional reductions each year through June 30, 2012.

Variable Rates:

Direct Loan and FFEL Program Loans First Disbursed Between July 1, 1998 and June 30, 2006

These rates were calculated based upon statutory formulas and equal the bond equivalent rate of the 91-day Treasury bills auctioned on May 31, 2011, plus certain statutory percentage add-ons.  The 91-day Treasury bills were auctioned at 0.061 percent, rounded to 0.06 percent.

Notes: 

• Interest rates on Stafford and PLUS loans first disbursed before July 1, 1998 are calculated using different statutory formulas, percentage add-ons, or both.
• Generally, interest rates on Consolidation Loans are fixed rates calculated based on the weighted average of the loans being consolidated rounded up to the next higher 1/8 of one percent, not to exceed 8.25 percent.