Publication Date: May 31,
2005
Author: Chief Operating
Officer, Federal Student Aid
Summary: FFEL and Direct
Loan Variable Interest Rates effective July 1, 2005
Posted on 05-31-2005
New Interest Rates for Stafford and PLUS Loans
in the Direct Loan and Federal Family Education Loan Programs
Effective July 1, 2005
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
|
|
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
|
|
|
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%.
