Interest rates are often very confusing to students borrowing education loans for the first time. Although the type of loan you take, as well as the date you take out a loan, will determine how your interest rate is calculated, it's also important to remember that your status as a student has a good deal to do with changes in your interest rate. On Federal Stafford loans, for example, the rate changes depending on whether you're still in school or have begun repayment of your loan.

The good news is that federal student loans are designed to keep interest rates as low as possible.

If you borrow private loans you can generally expect your interest rates to correspond to your credit history. Lenders generally charge higher interest rates on private loans than you'll find on federal loans, but current industry rates on private loans are very competitive.

Federal Stafford Loans For loans disbursed 7/1/08–6/30/09, the interest rate for any Stafford Loan for graduate students and for unsubsidized Stafford Loans for undergraduate students is fixed at 6.8% and for subsidized Stafford Loans for undergraduates at 6.0%. Interest rates on both unsubsidized and subsidized Federal Stafford loans disbursed 7/1/06–6/30/08 are fixed at 6.80%. Interest rates on Federal Stafford loans disbursed between 7/1/98 and 6/30/06 are variable and adjusted annually, not to exceed 8.25%. Federal PLUS Loans For loans disbursed 7/1/06–6/30/09, the interest rate for Federal PLUS Loans is fixed at 8.5%. Interest rates on Federal PLUS loans disbursed between 7/1/98 and 6/30/06 are variable and adjusted annually, not to exceed 9.0%.

APPLY NOW