The New Interest Rates published by the U.S. Department of Education on July 1st, 2007.

Variable interest rates on Federal Stafford and PLUS loans issued prior to July 1, 2006, will rise slightly, effective July 1. Based on the results of today's auction of 91-day Treasury bills, the rates on these variable rate loans will rise by 8 basis points (8/100 of 1 percent) beginning July 1st, 2007 through June 30th, 2008.

Given the very slight increase in student-loan interest rates, there may not be as strong a financial incentive as in previous recent years for borrowers with variable-rate loans to consolidate their loans prior to July 1 to "lock in" a lower rate. Consolidation-loan rates are based on the weighted average of the loans being consolidated, rounded up to the nearest one-eighth of 1-percentage point.

On the other hand, borrowers with variable-rate Federal Stafford loans issued between July 1, 1995, and June 30, 2006, may obtain a slightly lower rate by consolidating their loans during their grace period. Borrowers with fixed-rate PLUS loans issued since July 1, 2006, may benefit from consolidation, because the maximum consolidation-loan rate of 8.25 percent is lower than the 8.5-percent fixed rate on PLUS loans. Moreover, borrowers still may benefit from the longer repayment period and resulting reduced monthly loan payments that they may obtain through loan consolidation, regardless of the interest rate.

Newly issued Stafford and PLUS loans in the Federal Family Education Loan Program will continue to carry fixed interest rates of 6.8 percent and 8.5 percent, respectively. For more information, view.

New Student Loan Interest Rates

 2007-2008 2006-2007 Difference
Federal Stafford loans disbursed on or after 7/1/06 (Fixed rate) 6.80% 6.80% N/A
Federal Stafford loans disbursed 7/1/98 through 6/30/06 in school, in grace, in deferment 6.62% 6.54% 0.08%
Federal Stafford loans disbursed 7/1/98 through 6/30/06 in repayment 7.22% 7.14% 0.08%
Federal Stafford loans disbursed 7/1/95 through 6/30/98 in school, in grace, in deferment 7.42% 7.34% 0.08%
Federal Stafford loans disbursed 7/1/95 through 6/30/98 in repayment 8.02% 7.94% 0.08%
Federal Stafford loans disbursed 7/1/94 through 6/30/95 8.02% 7.94% 0.08%
Federal Stafford loans disbursed 10/1/92 through 6/30/94 8.02% 7.94% 0.08%
PLUS loans disbursed on or after 7/1/06 (Fixed rate) 8.50% 8.50% N/A
PLUS loans disbursed 7/1/98 through 6/30/06 8.02% 7.94% 0.08%
PLUS loans disbursed 10/1/92 through 6/30/98 N/A 8.34% N/A

 

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Stafford Loan Limits 2007 - 2008

Year

Subsidized

Unsubsidized

Freshman

$3,500

$4,000

Sophomore

$4,500

$4,000

Junior

$5,500

$5,000

Senior

$5,500

$5,000

Grad Student

$8,500

$12,000

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 as the weighted average of the loans being consolidated rounded up to the next higher 1/8 percent, not to exceed 8.25%.

Payment Plan:

Loan Balance Repayment Term
$10,000 to $19,999 Up to 15 years
$20,000 to $39,999 Up to 20 years
$40,000 to $59,999 Up to 25 years
over $60,000 Up to 30 years

We can customize your payments for you. The above payment plans can be customized to each individual. Every borrower’s needs are different from the other. Please contact one of our personal loan advocates to customize your repayment plan today.

For more information please visit www.NASFAA.org, the Web Site of the
National Association of Student Financial Aid Administrators (NASFAA).