Interest on your loan will accrue at the rate in effect at the time you received your loan(s).
On Subsidized Stafford loans, the federal government paid your interest while you were enrolled in school and during your grace period; you will be responsible for paying the accrued interest after your grace period expires.
|Loan Disbursement Dates||Interest Rate|
|Prior to June 30, 2008||6.8%|
|July 1, 2008 to June 30, 2009||6.0%|
|July 1, 2009 to June 30, 2010||5.6%|
|July 1, 2010 to June 30, 2011||4.5%|
|July 1, 2011 to June 30, 2012||3.4%|
* On July 1, 2012 and after, interest for Subsidized Stafford loans is scheduled to return to a 6.8% fixed rate. In addition, there will no longer be an interest-free 6 month grace period after leaving school or dropping below half-time credits.
The interest rate on all Unsubsidized Stafford loans is 6.8%. On Unsubsidized Stafford loans, interest starts accumulating from the time the funds are disbursed to you, and you are responsible for paying all of the interest that accrues on the loan. You may choose to either pay the interest as it accrues while you are still in school, or you may let it accrue and capitalize the full interest amount (add it to your principal balance) when your loan goes into repayment. Capitalizing your interest while in school will increase the total interest you pay over the life of your loan.
The interest rate on Parent and Graduate PLUS loans is a fixed rate of 7.9% Interest is charged on PLUS loans beginning on the date of the loans's first disbursement.
The interest rate on Perkins loans is a fixed rate of 5%. Interest is paid by the federal government during your in-school and the 9-month grace periods.