Stafford new interest rate
New Interest Rates for Stafford and PLUS Loans in the Direct Loan and Federal Family Education Loan Programs

Below are interest rates that apply, effective July 1, 2005, to FFEL and Direct Loan Stafford and PLUS loans that were or are disbursed on or after July 1, 1998. These rates were calculated based upon statutory formulas and equal the bond equivalent rate of the 91-day Treasury bills auctioned on May 31, 2005, plus certain statutory percentage add-ons. The 91-day Treasury bills were auctioned at 2.998 percent, rounded to 3.00 percent.

Loan Type	Status	Program
		Direct Loans		FFEL
		7/1/2004 to 6/30/2005	7/1/2005 to 6/30/2006	7/1/2004 to 6/30/2005	7/1/2005 to 6/30/2006
Subsidized Loans	Repayment or Forbearance	3.37	5.300	3.37	5.300
	In-school, Grace, or Deferment	2.77	4.700	2.77	4.700
Unsubsidized Loans	Repayment or Forbearance	3.37	5.300	3.37	5.300
	In-school, Grace, or Deferment	2.77	4.700	2.77	4.700
PLUS Loans (Parent Loans)	All	4.17	6.100	4.17	6.100

Notes:
   • Interest rates on Stafford and PLUS loans disbursed before July 1, 1998, are calculated using different statutory formulas and or percentage add-ons.

Generally, interest rates on Consolidation Loans are fixed rates calculated based on the weighted average of the loans being consolidated rounded up to the next higher 1/8 percent, not to exceed 8.25%.