Publication Date: May 31, 2005
Author: Chief Operating Officer, Federal Student Aid
Summary: FFEL and Direct Loan Variable Interest Rates effective July 1, 2005
Posted on 05-31-2005
New Interest Rates for Stafford and PLUS Loans in the Direct Loan and Federal Family Education Loan Programs
Effective July 1, 2005
Below are interest rates that apply, effective July 1, 2005, to FFEL and Direct Loan Stafford and PLUS loans that were or are disbursed on or after July 1, 1998. These rates were calculated based upon statutory formulas and equal the bond equivalent rate of the 91-day Treasury bills auctioned on May 31, 2005, plus certain statutory percentage add-ons. The 91-day Treasury bills were auctioned at 2.998 percent, rounded to 3.00 percent.
| Loan Type | Status | Program | |||
Direct Loans | FFEL | ||||
7/1/2004 to 6/30/2005 | 7/1/2005 to 6/30/2006 | 7/1/2004 to 6/30/2005 | 7/1/2005 to 6/30/2006 | ||
Subsidized Loans | Repayment or Forbearance | 3.37 | 5.300 | 3.37 | 5.300 |
In-school, Grace, or Deferment | 2.77 | 4.700 | 2.77 | 4.700 | |
Unsubsidized Loans | Repayment or Forbearance | 3.37 | 5.300 | 3.37 | 5.300 |
In-school, Grace, or Deferment | 2.77 | 4.700 | 2.77 | 4.700 | |
PLUS Loans (Parent Loans) | All | 4.17 | 6.100 | 4.17 | 6.100 |
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%.