The U.S. Department of Education (ED) issued information on Federal Family Education loan interest rates, effective July 1, 2009.

Loans that were first disbursed on or after July 1, 2006 have a fixed interest rate for the life of the loan. Loans that were first disbursed between July 1, 1998 and June 30, 2006 have variable interest rates for the life of the loan, with the interest rate adjusting every July 1. Interest rates on loans that were disbursed before July 1, 1998 are calculated using different formulas. We will publish those rates after we receive them from ED.

Fixed Interest Rates

The only change to fixed interest rates on loans first disbursed July 1, 2009 – June 30, 2010 from those of the previous year (July 1, 2008 – June 30, 2009) is a decrease in the fixed interest rate for Subsidized Stafford Loans for undergraduate students from 6.0% to 5.6%.

The rates for loans first disbursed between July 1, 2009 – June 30, 2010 are:
  • Subsidized Stafford Loans (Undergraduate Students) – 5.6%
  • Subsidized Stafford Loans (Graduate Students) - 6.8%
  • Unsubsidized Stafford Loans – 6.8%
  • PLUS Loans – 8.5%


Variable Interest Rates

The rates for loans first disbursed between July 1, 1998 – June 30, 2006:
  • Stafford Loans (In-School/Deferment/Grace) – 1.88%
  • Stafford Loans (Repayment/Forbearance) – 2.48%
  • PLUS Loans - 3.28%

Consolidation Loans

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

Please direct questions regarding this announcement to the Office of Regulatory Compliance at 1-518-473-3986; toll free at 1-866-431-HESC (1-866-431-4372), press 6; or by email at askpolicy@hesc.org

Attachment: FFEL and Direct Loan Interest Chart Effective July 1, 2009

Posted: 5/28/09