Fixed Interest Rate
"Fixed Interest Rate" submitted by SchoolGrantsfor Editorial Team and last updated on Monday 9th January 2012
An interest rate that remains the same for the life of the loan. Subsidized Stafford Loans made to undergraduate students with a first disbursement date between July 1, 2009, and June 30, 2010, have a fixed interest rate of 5.6%.
Subsidized Stafford Loans made to graduate students have a fixed interest rate of 6.8%.
All unsubsidized Stafford Loans (for both undergraduate and graduate students) have a fixed interest rate of 6.8%.
FFEL PLUS Loans have a fixed interest rate of 8.5% for FFEL PLUS Loans and 7.9% for Direct PLUS Loans.
Direct PLUS Loans have a fixed interest rate of 7.9%. The Federal Perkins Loans rate is 5%.
The interest rate on subsidized Stafford Loans made to undergraduate students, with a first disbursement date on or after July 1, 2008, will be reduced in future years, as shown in the following chart:
Interest Rate Reductions for Subsidized Stafford Loans Made to Undergraduates
|First disbursement of a loan||Interest rate on the unpaid balance|
|Made on or after||And made before|
|July 1, 2010||July 1, 2011||4.5%|
|July 1, 2011||July 1, 2012||3.4%|
Note: These interest rate reductions do not affect the interest rates of any prior Subsidized Stafford Loans made to undergraduate borrowers; the interest rates on those prior loans remain unchanged. The reduced interest rates apply only to subsidized Stafford Loans made to undergraduate students. Subsidized Loans made to graduate students and unsubsidized Stafford Loans made to all students (undergraduate or graduate) have a fixed interest rate of 6.8%.
- Accrued Interest/ Capitalization
- Accruing monthly interest
- CDs (Certificates of Deposit) to earn a higher fixed interest rate with no fees
- Extended repayment with a fixed annual or graduated repayment
- Interest rate on a consolidation loan
- Interest Rate of Student Loans (Stafford, PLUS, Perkins, Private, HPSL, PCL, LDS, NSL, HEAL & Other Loans) After You Graduate or Leave School
- Side-by-Side Comparison of All Federal Student Aid (Loans & Grants) Interest Rate
- Student Loans vs. Private Loans In Terms of Interest Rate
- Extended Repayment Plan with a fixed annual or graduated repayment
- Interest Rate of Federal Grants and Loans For Military and Their Dependents
- Credit Card Interest Rate Traps
- Fixed interest rate of all unsubsidized Stafford Loans (for both undergraduate and graduate students)
- Repayment of Variable Rates to a Fixed Rate and Save