Maintained for Historical Purposes

This resource is being maintained for historical purposes only and is not currently applicable.

Summary: Interest Rates for Stafford and PLUS Loans in the Direct Loan and Federal Family Education Loan Programs Effective July 1, 2006

Publication Date: May 2006

Author: Chief Operating Officer, Federal Student Aid

Summary: Interest Rates for Stafford and PLUS Loans in the Direct Loan and Federal Family Education Loan Programs Effective July 1, 2006

Posted on 05-31-2006

Interest Rates for Loans First Disbursed on or After July 1, 2006

Loan Type

Status

Program

7/1/2006 to 6/30/2007

Direct Loans

FFEL

Subsidized Loans

Repayment or Forbearance

6.80

6.80

In-school, Grace, or Deferment

6.80

6.80

Unsubsidized Loans

Repayment or Forbearance

6.80

6.80

In-school, Grace, or Deferment

6.80

6.80

PLUS Loans

All

7.90

8.50

Interest Rates for Loans First Disbursed Between July 1, 1998 and June 30, 2006

The 2006-2007 rates were calculated based upon statutory formulas and equal the bond equivalent rate of the 91-day Treasury bills auctioned on May 30, 2006, plus certain statutory percentage add-ons. The 91-day Treasury bills were auctioned at 4.843 percent, rounded to 4.84 percent.

Loan Type

Status

Program

Direct Loans

FFEL

7/1/2005 to 6/30/2006

7/1/2006 to 6/30/2007

7/1/2005 to 6/30/2006

7/1/2006 to 6/30/2007

Subsidized Loans

Repayment or Forbearance

5.30

7.14

5.30

7.14

In-school, Grace, or Deferment

4.70

6.54

4.70

6.54

Unsubsidized Loans

Repayment or Forbearance

5.30

7.14

5.30

7.14

In-school, Grace, or Deferment

4.70

6.54

4.70

6.54

PLUS Loans

All

6.10

7.94

6.10

7.94

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 as the weighted average of the loans being consolidated rounded up to the next higher 1/8 percent, not to exceed 8.25%.

Last Modified: 05/30/2006