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Student consolidation loan.
The Federal Consolidation Loan has a fixed interest
rate, based on the weighted average of the interest
rates of the loans being consolidated, excluding Health
Education Assistance Loans (HEAL), rounded up to the
nearest 1/8th% or 8.25%, whichever is less. The
weighted-average rate calculation is based on the
official interest rates for the loans being
consolidated, exclusive of any borrower benefit or other
rate special rate discounts.
Private education loan
Interest rates vary with
different lenders
listed here.
Current
interest rates on Federal loans. Student loan interest
varies greatly dependent upon the loan program. Rates
offered through the U.S. Department of Education are
unarguably the best rates available to borrowers. With
excellent credit, borrowers can also secure attractive
interest rates on private student loans. The following
is a quick breakdown of student loan interest rates for
popular federal and private loan programs.
Stafford Loan
Stafford loans disbursed after July 1, 2006 boast a
fixed rate of 6.8 percent. Loans disbursed between July
1, 1998 and June 30, 2006 feature variable student loan
interest rates. These rates are subject to change
annually on July 1 and will never exceed 8.25 percent.
As of July 1, 2007, the current interest rate for loans
dispersed during the July 1, 1998 to June 30, 2006
timeframe is 7.22 percent. Stafford loans include both
Direct and FFEL loans.
Federal Student Loan Consolidation
Federal student loan consolidation packages offer
various fixed rates for students who combine their
federal student loans. The student loan interest rate
depends upon the consolidated loans but ranges betweens
4.75 percent and 6.125 percent (note the consolidated
rate is lower than the Stafford interest rate). The rate
is determined by the borrower’s underlying loans’
primary rates.
PLUS Loan
The interest rate on PLUS loans initially dispersed
after July 1, 2006, is 8.5 percent. The rate for loans
first dispersed between July 1, 1998, and June 30, 2006,
is subject to change on July 1 of each year. The rate,
however, is never to exceed 9 percent. As of July 1,
2007, the current PLUS loan interest rate is 8.02
percent.
FLASHBACK: Talk about low interest student loans
: Federal Loan Interest rates from 2002-03
|
Loan name |
 |
Rate in effect July 1, 2002
through June 30, 2003 |
|
Maximum loan amount |
|
|
Stafford Loans*
(subsidized and unsubsidized) |
|
In-school, grace,
deferment: 3.46%
Repayment: 4.06% |
|
Undergraduate Subsidized/
Unsubsidized: $23,000+
Graduate Subsidized: $65,500
Graduate Unsubsidized: $138,500++ |
|
|
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PLUS Loans* |
|
4.86% |
|
N/A |
|
|
|
Federal Consolidation Loan - |
|
Fixed interest rate—varies from borrower to
borrower but generally expected to range from
3.5% to 5.5%. Consolidation rate is based on
weighted average of current
interest rates of loans consolidated,
rounded up to the nearest 1/8th%, capped at
8.25%. |
|
N/A |
|
|
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Perkins Loan |
|
5% (Fixed rate) |
|
Undergraduate: $15,000
Graduate: $40,000 |
|
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NSL |
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5% (Fixed rate) |
|
N/A |
|
|
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HEAL Relief Account |
|
Based on weighted average of refinanced loans,
at the 91-day T-bill plus between 1.75% and
3.00%, rounded up to nearest 1/8th%. |
|
N/A |
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