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FFEL and Direct Loan Interest Rates Effective July 1, 2008


Fixed Rates for Loans First Disbursed on or After July 1, 2006


Loan Type
Grade Level
Program
Direct Loans
FFEL
7/1/2006 to 6/30/2008
7/1/2008 to 6/30/2009
7/1/2006 to 6/30/2008
7/1/2008 to 6/30/2009
Subsidized Loans
 Undergraduate
6.80
6.00
6.80
6.00
Graduate
6.80
6.80
6.80
6.80
Unsubsidized Loans
 Undergraduate
6.80
6.80
6.80
6.80
Graduate
6.80
6.80
6.80
6.80
PLUS Loans
 All
7.90
7.90
8.50
8.50


Variable Rates for 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 27, 2008, plus certain statutory percentage add-ons. The 91-day Treasury bills were auctioned at 1.905 percent, rounded to 1.91 percent.


Loan Type
Status
Program
Direct Loans
FFEL
7/1/2007
to
6/30/2008
7/1/2008
to
6/30/2009
7/1/2007
to
6/30/2008
7/1/2008
to
6/30/2009
Subsidized Loans
 Repayment
or
Forbearance
7.22
4.21
7.22
4.21
In-School, Grace,
or Deferment
6.62
3.61
6.62
3.61
Unsubsidized Loans
 Repayment
or
Forbearance
7.22
4.21
7.22
4.21
In-School, Grace,
or Deferment
6.62
3.61
6.62
3.61
PLUS Loans
 All
8.02
5.01
8.02
5.01

Notes:

  • Interest rates on Stafford and PLUS loans 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 percent, not to exceed 8.25%.
Last updated/reviewed May 29, 2008

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