What are the interest rates on my loans?
The current interest rate on the Federal Stafford loans disbursed after July 1, 2006 will be a 6.8 percent fixed interest rate. For loans disbursed prior to July 1, 2006, the interest rate is variable and changes every July 1. The interest rates on Federal Stafford loans will never go above 8.25 percent. For the Federal Perkins loan, the interest rate is 5 percent. In regards to alternative loans, you will need to refer to the promissory note or contact the lender for interest rate information. If I do not complete my education, do I have to pay back my student loans? Yes. Student loans are required to be paid back regardless of whether you have completed your education. In the event that you choose not to pay your loans back, they will go into default. With default the Department of Education will obtain your loan and assign it to a collection agency. You will owe the entire unpaid amount, including interest, collection fees and court and attorney’s fees. At this time, the IRS may sei
