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CFDA Number: 84.032
Program Type: Guaranteed-insured loans
Also Known As: FFEL Program; FFEL loans. FFEL includes four components: Stafford Loans, Unsubsidized Stafford Loans,
Federal PLUS Loans, and Federal Consolidation Loans.
Loan Type | Characteristics | Interest Rate for New Loans as of July 1, 2006 |
Stafford | Interest paid by government when student is in school and during periods of grace and deferment. | 6.8% |
Unsubsidized Stafford | Interest NOT paid by government when student is in school nor during periods of grace and deferment. | 6.8% |
PLUS | Enables parents to borrow to pay the costs of higher education for their dependent undergraduates and graduate students to pay their costs. | 8.5% |
Consolidation | Combines more than one federal education loan into a single loan. | Weighted average of loans rounded upward to nearest 1/8%. Capped at 8.25% |
Interest rate for loans made before July 1, 2006: For Stafford and Unsubsidized Stafford, in-school rate is 91-day T-Bill + 1.7%; in-repayment rate is 91-day T-Bill + 2.3%; both rates are capped at 8.25%. For PLUS, in-repayment rate is 91-day T-Bill + 3.1% and is capped at 9%. For Consolidation, see above.
In addition, certain new borrowers after Oct. 1, 1998, who teach for five consecutive years in qualifying schools serving low-income students may qualify for up to $5,000, and, in the case of highly qualified mathematics, science, and special education teachers, up to $17,500, in loan forgiveness.
Last Modified: 09/10/2008
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