Federal Stafford Loan Interest Rate

Federal Stafford loan interest rates are determined by the US Department of Education. For subsidized Stafford loans, the government pays the interest while you are in school. Therefore, you should always try to take out this loan - it is free money! A portion of your loan may be unsubsidized. This means the interest will accumulate while you are in school and you will have to pay it off after you graduate. You always have the option of making payments while you are in school - but most people defer interest payments.

What are the current Stafford Loan interest rates?

Direct Subsidized Loans:

• Undergraduate students: If the first disbursement of your subsidized stafford loan is between July 1, 2010 and June 30, 2011, the interest rate on your loan is fixed at 3.4%. The interest rate on subsidized loans first disbursed to undergraduate students between July 1, 2011 and June 30, 2012 will be fixed at 3.4%.
• Graduate and professional degree students: The interest rate is fixed at 6.8%.

Direct Unsubsidized Loans: The interest rate is fixed at 6.8% for all borrowers (undergraduate and graduate).

Interest rate cap for military members: If you qualify under the Service Members Civil Relief Act, the interest rate on loans you obtained before entering military service may be capped at 6% during your military service. You must contact your loan servicer to request this benefit.

In addition, we do not charge interest (for a period of no more than 60 months) on Direct Loans first disbursed on or after October 1, 2008, while a borrower is serving on active duty or performing qualifying National Guard duty during a war or other military operation or other emergency, and serving in an area of hostilities qualifying for special pay.

Other than interest, is there a charge for the Stafford loan?

There is a loan fee on all Direct Subsidized and Unsubsidized Loans. The loan fee is a percentage of the amount of each loan you receive. For loans first disbursed between July 1, 2010 and June 30, 2011 the loan fee is 1.0%. We will deduct the loan fee proportionately from each loan disbursement. The specific loan fee that you are charged will be reflected in a disclosure statement that we send to you.

Prior Federal Loans and Financial Aid History: If you currently have a Stafford Loan and would like to check the interest rate, servicer information, and other financial aid history, go to the National Student Loan Data System.