The U.S. Department of Education (ED) has just issued information on Federal Family Education loan interest rates, effective July 1, 2008.

Fixed Interest Rates

For loans first disbursed between July 1, 2008 – June 30, 2009:
  • Subsidized Stafford Loan (Undergraduate Students) – 6.0%
  • Subsidized Stafford Loan (Graduate Students) – 6.8%
  • Unsubsidized Stafford Loan – 6.8%
  • PLUS Loan – 8.5%

Variable Interest Rates

For loans first disbursed between July 1, 1998 – June 30, 2006:
  • Stafford Loans (In-School / Deferment / Grace) – 3.61%
  • Stafford Loans (Repayment or Forbearance) – 4.21%
  • PLUS Loans – 5.01%

** Variable interest rates for loans disbursed prior to July 1, 1998 are calculated using different formulas. We expect to receive the interest rate for these loans shortly and will publish them as soon as we receive these rates from the Department of Education.

Consolidation Loans

Interest rates on Consolidation Loans are fixed rates calculated on the weighted average of the loans being consolidated rounded up to the next higher 1/8 percent, not to exceed 8.25%.

Questions regarding this announcement may be directed to the Office of Counsel and Regulatory Compliance at 518-473-3986: for toll free calls dial 1-866-431-HESC (1-866-431-4372) press 6 or askpolicy@hesc.org.


Attachment: FFEL & DIRECT Loan Interest Chart

Date Posted 6/3/08