The interest rate for Stafford loans disbursed on or after July 1, 2009, is fixed at 5.6 percent for subsidized loans and 6.8 percent for unsubsidized loans. The variable interest rate for Stafford loans first disbursed on or after July 1, 1998 and prior to July 1, 2006 is 1.88 percent during in-school, grace, or deferment status during the period of July 1, 2009 through and including June 30, 2010. The variable interest rate for Stafford loans first disbursed on or after July 1, 1998 and prior to July 1, 2006 is 2.48 percent if the loans are in repayment or forbearance status during the period of July 1, 2007 through and including June 30, 2010.

The interest rate for the Federal Family Education Loan Program (FFELP) PLUS loans first disbursed on or after July 1, 2006 is fixed at 8.5 percent. The variable interest rate for PLUS loans first disbursed on or after July 1, 1998 and prior to July1, 2006 is 3.28 percent. Interest rates for variable-rate Stafford and PLUS loans are determined annually and are generally based on the bond equivalent rate of the 91-day Treasury bill plus an additional percentage as defined in the Higher Education Act of 1965 as amended (HEA).

These rates were calculated based upon statutory formulas and equal the bond equivalent rate of the 91-day Treasury bills auctioned on May 26, 2009, plus certain statutory percentage add-ons. The 91-day Treasury bills were auctioned at 0.178 percent, rounded to 0.18 percent.

STAFFORD LOANS

PLUS LOANS