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How do Stafford loan interest rates work?

April 26, 2017interest rates loan Stafford

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How do Stafford loan interest rates work?

2 Answers

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Rates for each school year are capped on July 1 by the government, so lenders can choose to offer a lower rate but not higher (most follow the government rates below). Subsidized Stafford Loan rates are scheduled to decrease through the 2011-20012 school year, and Unsubsidized Stafford loan rates are scheduled to remain at 6.8%. So your rate depends on the type of Stafford loan and when your loan funds are disbursed: SubsidizedLoans disbursed on or after July 1, 2008, and before July 1, 2009: 6.0%Loans disbursed on or after July 1, 2009, and before July 1, 2010: 5.6%Loans disbursed on or after July 1, 2010, and before July 1, 2011: 4.5%Loans disbursed on or after July 1, 2011, and before July 1, 2012: 3.4%UnsubsidizedLoans disbursed on or after July 1, 2008, and before July 1, 2012: 6.

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Posted

Rates for each school year are capped on July 1 by the government, so lenders can choose to offer a lower rate but not higher (most follow the government rates below). Subsidized Stafford Loan rates are scheduled to decrease through the 2011-2012 school year, and Unsubsidized Stafford loan rates are scheduled to remain at 6.8%.