New Variable Interest Rates for 2008-2009
The 2008-09 Interest Rates Charts (104 KB PDF) show the variable interest rates applicable to outstanding Federal Stafford, SLS, PLUS, and Consolidation loans for the period of July 1, 2008 through June 30, 2009.
Interest rates for variable-rate loans under the Federal Family Education Loan Program (FFELP) are determined annually and are generally based on the bond equivalent rate of 91-day Treasury Bills auctioned before June 1st of each year. The bond equivalent rate for 91-day Treasury Bills auctioned on May 27, 2008 is 1.905 %, which rounds to 1.91%.
Please note that the interest rate on subsidized Stafford loans to undergraduate borrowers and with a first disbursement on or after July 1, 2008 and before July 1, 2009 is fixed at 6%. The interest rate for subsidized Stafford loans to undergraduate borrowers and with a first disbursement on or after July 1, 2006 and prior to July 1, 2008 is fixed at 6.8%.
The interest rate for subsidized Stafford loans to graduate borrowers and for unsubsidized Stafford loans to undergraduate and to graduate borrowers and with a first disbursement on or after July 1, 2006 is fixed at 6.8%. Likewise, the interest rate for both Grad PLUS and parent PLUS loans first disbursed on or after July 1, 2006 is fixed at 8.5%.
For PLUS and SLS loans first disbursed during the period beginning July 1, 1987 and ending June 30, 1998, the interest rate is determined by adding 3.1% or 3.25%, as applicable, to the weekly average one-year constant maturity Treasury yield, as published by the Board of Governors of the Federal Reserve System, for the last calendar week ending on or before June 26th.
For information on adjusting a borrower's repayment terms in response to a change in the interest rate, please see Subsection 10.6.E of Chapter 10 and Section B.2 of Appendix B of the Integrated Common Manual (ICM), available at www.aesSuccess.org.
Any questions about these interest rates may be addressed to AES at 1-800-443-0646.