Interest Rates for Federal Student Loans
In combination with federal subsidies for low-income borrowers while in school, some tax-deductibility, and additional savings provided through interest rate reductions, 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, 2010, through June 30, 2011
| Loan Type |
Interest Rate |
| Subsidized Stafford Loan for undergraduates |
4.5% Fixed |
| Unsubsidized Stafford Loan for undergraduates |
6.8% Fixed |
| Subsidized and unsubsidized Stafford Loan for graduate and professional students |
6.8% Fixed |
| Parent PLUS Loans |
7.9% Fixed |
| Graduate PLUS Loans |
7.9% Fixed |
For the period July 1, 2010, through June 30, 2011, 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 |
0.167% |
1.7% |
8.25% |
1.87% |
| Federal Stafford Loan (Subsidized and Unsubsidized) |
All other periods |
0.167% |
2.3% |
8.25% |
2.47% |
Federal Parent
PLUS Loan |
All periods |
0.167% |
3.1% |
9.00% |
3.27% |