Publication Date: May 30, 2003
Author: General Manager: FSA Schools Channel
Summary: New Student Loan Interest Rates
Posted on 05-30-2003
TO: ALL DESTINATION POINTS
FROM: U.S. DEPARTMENT OF EDUCATION
RE: New Student Loan Interest Rates
DATE: May 30, 2003
New Interest Rates for Stafford and Parent Loans in the Direct Loan and
Federal Family Education Loan Programs
Effective July 1, 2003
Below are interest rates that apply, effective July 1, 2003, to FFEL and Direct Loan Stafford (Student) and PLUS (Parent) loans that were disbursed on or after July 1, 1998.� These rates were calculated based upon statutory formulas and equal the bond equivalent of the 91-day Treasury bills auctioned on May 28, 2003 plus certain statutory percentage add-ons. The 91-day Treasury bills were auctioned at 1.121 percent, rounded to 1.12 percent.
Loan Type |
Status |
Program |
|||
Direct Loans |
FFEL |
||||
7/1/2002 to 6/30/2003 |
7/1/2003 to 6/30/2004 |
7/1/2002 to 6/30/2003 |
7/1/2003 to 6/30/2004 |
||
Subsidized Loans |
Repayment or Forbearance |
4.06 |
3.42 |
4.06 |
3.42 |
In-school, Grace, or Deferment |
3.46 |
2.82 |
3.46 |
2.82 |
|
Unsubsidized Loans |
Repayment or Forbearance |
4.06 |
3.42 |
4.06 |
3.42 |
In-school, Grace, or Deferment |
3.46 |
2.82 |
3.46 |
2.82 |
|
PLUS Loans (Parent Loans) |
All |
4.86 |
4.22 |
4.86 |
4.22 |
Notes:
- Interest rates on Stafford and PLUS loans disbursed before July 1, 1998 are calculated using different statutory formulas and or percentage add-ons.
- Generally, interest rates on Consolidation Loans are fixed rates calculated based on the weighted average of the loans being consolidated rounded up to the next higher 1/8 percent, not to exceed 8.25%.