Stafford Loan Rates

Stafford Loan Interest Rates

  • As of July 1, 2006, the interest rate on unsubsidized Stafford student loans for undergraduates is fixed at 6.8%.
  • The interest rate for Stafford graduate student loans, both subsidized and unsubsidized, is also fixed at 6.8%.
  • Prior to July 1, 2006, the interest rates on Stafford student loans were variable. Stafford loans issued prior to that date have their interest rates adjusted on July 1 of each year, based on the last 91-day T-Bill rate in May. Interest on these variable-rate Stafford student loans accrues at a rate of 91-day T-Bill + 2.3%.

Stafford Loan Fees

Federal Stafford student loans carry a 3% government origination fee and a 1% guarantee fee (normally waived). These fees are taken out of the proceeds of the loan, so there’s no initial cost to you to take out a Stafford student loan.

Stafford Loan Repayment Terms

  • The standard repayment term is 10 years.
  • Repayment normally begins six months after you leave school, with a minimum monthly payment of $50. (Your actual monthly payment will depend on the total amount of money you borrowed in federal college loans.)
  • Subsidized Stafford loans: The government will cover the interest charges on your subsidized Stafford loan while you’re in school at least half time and during authorized deferment periods.
  • Unsubsidized Stafford loans: Even though you’re allowed to defer payments on your Stafford loans until after graduation, interest will continue to accrue on your unsubsidized Stafford loans, and you’ll be responsible for paying that accrued interest once repayment begins.
  • There is no prepayment penalty for paying off your Stafford student loans early.

If you’re experiencing financial hardship and having a hard time making your monthly Stafford loan payments, you may be able to reduce or temporarily postpone your payments through an authorized deferment or forbearance or with an income-sensitive repayment plan.

All Stafford student loan debt is forgiven in the event of death or permanent disability of the student borrower.

Apply for a Stafford student loan

 

Quick Links

» Apply for a Stafford student loan
» Stafford student loans: Overview
» Types of Stafford student loans
» Eligibility for Stafford student loans
» Stafford loan amounts
» Top questions about Stafford student loans