Louisiana Tech University - Financial Aid - Federal Stafford Loan Interest Rates

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School Code: 002008

FAQS

Glossary

Louisiana Tech University adheres to the equal opportunity provisions of federal and civil rights laws, and does not discriminate on the basis of race, color, national origin, religion, age, sex, sexual orientation, marital status or disability. The Title IX Coordinator is Carrie Flournoy, President’s Office, P.O. Box 3168; phone: (318)257-3785; e-mail flournoy@latech.edu

Federal Stafford Loan Interest Rates

Direct Stafford Loans have fixed interest rates on or after July 1, 2006. The Stafford Loans for 2012-2013 have the following interest rates:

Undergraduate Subsidized Stafford Loans are 3.4%

Graduate Unsubsidized and Undergraduate Unsubsidized Stafford Loans are 6.8%

You'll pay a fee of up to 2.5 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 (2.5%)	- 29
Net Amount received to pay fees	$ 1,138