DIVISION OF STUDENT FINANCIAL AID
         HOME   |   CONTACT US   |   MY AID   |   FORMS   |   CALENDAR   |   EDUCATORS  |   PARENTS       

 

Federal Stafford Loan
Interest Rates

Stafford Loans have fixed interest rates on or after July 1, 2006.  All lenders offer the same rate for the Stafford Loan, although some give discounts for on-time and electronic payment.  The Stafford Loans for 2008-2009 have  the following interest rates:

Undergraduate Subsidized Stafford Loans is 6.0%

Graduate or Unsubsidized Stafford Loans is 6.8%

You'll pay a fee of up to 4 percent of the loan, deducted proportionately from each loan disbursement. A portion of the fee is for insurance used to pay off loan defaults; the rest reduces the cost of the loan to the government. Because of this deduction, you'll receive slightly less than the amount you're borrowing.

For more in-depth information on Stafford Loans, go to http://www.finaid.org/loans/studentloan.phtml .

Below is an example of a beginning freshman's Stafford Loan disbursement:

 First year loan amount

$ 3,500

 Amount available per quarter ($3,500 ÷ 3)

1,167

 Less Lender Origination Fee (3%)

 -     35

 Net Amount received to pay fees

$ 1,132