Your Cheat Sheet: A Quick Guide to Student Loans for College


STUDENT LOAN INTEREST RATES

Student loan interest rates and repayment options vary by type of loan and the date of disbursement. Here’s a breakdown of your repayment options for all loans disbursed between July 1, 2011 and June 30, 2012:

  • FFEL Subsidized Loans: Fixed rate of 3.4% for undergraduates, fixed rate of 6.8% for graduate students
  • FDSL Loans: Fixed rate of 3.4% for undergraduates, fixed rate of 6.8% for graduate students
  • Stafford Loans: 4.5% for undergraduate students, 6.8% for graduate and professional students
  • PLUS Loans: Fixed rate of 7.9% for parents, graduate students and professionals
  • FFEL PLUS Loans: 8.5% for all students
  • Consolidated Loans: The interest rate on a consolidation loan is the weighted average of the interest rates on the loans being consolidated, rounded up to the nearest 1/8 of a percent and capped at 8.25%.
  • Private Loans: Interest rates vary by lender; but rates in the 8% to 12% range are common, according to FinAid.org, a college financial aid site.

Continue reading on next page for loan repayment options


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