Sunday's Savings Tip: August 22nd

Student Loan Interest Rates

student debt 

Do you have student loans that you are diligently working to pay off?

If so, changes made July 1 to student loan rates could have a positive effect on your budget.
For Stafford and PLUS loans issued on or after July 1, 1998, and before July 1, 2006, the new interest rates for the period of July 1, 2010, through June 30, 2011, are:

    • Stafford Loans in repayment status—2.4 percent, down from 2.48 percent
    • Stafford Loans in school, grace period or deferment status—1.87 percent, down from 1.88 percent
    • PLUS Loans in repayment status—3.27 percent, down from 3.28 percent

For Stafford and PLUS Loans issued on or after July 1, 2006, the interest rates for loans disbursed on or after July 1, 2010, through June 30, 2011, are as follows:

    • Subsidized Stafford Loans—a fixed 4.5 percent rate, down from 5.6 percent
    • Unsubsidized Stafford Loans—a fixed 6.8 percent rate for the life of the loan
    • PLUS Loan—a fixed 7.9 percent rate for the life of the loan

Remember, borrowers with variable rate federal student loans can lock in the current applicable rate on their loans by consolidating the loans (private loans can't be included in a federal consolidation loan). The interest rate on a federal consolidation loan is a fixed rate that is equal to the weighted average of the current applicable interest rates on the loans being consolidated, rounded to the nearest 1/8th of a point. Borrowers can only consolidate once.

For more information, please see Student Loan Repayment Options and www.loanconsolidation.ed.gov.

post signature

0 comments:

Post a Comment

Leelou Blogs