In combination with federal subsidies for low-income borrowers while in school, some tax-deductibility, and additional savings provided by private student loan providers such as Edamerica, 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, 2009
| Loan Type |
Borrower Type |
Interest Rate |
| Federal Stafford Loan |
Subsidized Stafford Loan for undergraduate students |
5.6% Fixed |
| |
Unsubsidized Stafford Loan for undergraduate students and all Stafford Loans for graduate and professional students |
6.8% Fixed |
| Federal PLUS Loan |
For parents of undergraduate students |
8.5% Fixed |
| |
For graduate and professional students, known as Grad PLUS |
For the Period July 1, 2009, through June 30, 2010, 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 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 |
0.178% |
1.7% |
8.25% |
1.88% |
| All other periods |
0.178% |
2.3% |
8.25% |
2.48% |
| Federal PLUS Loan - for parents of undergraduate students |
All periods |
0.178% |
3.1% |
9.0% |
3.28% |