Stafford Interest Rates

The interest rate for both the Subsidized and Unsubsidized Direct Stafford Loan changes on July 1, and is based on the 91-day rate + 1.7% (in school) or 2.3% (in repayment) from the last Treasury auction in May and the average one-year constant maturity Treasury yield (CMT) for the last calendar week ending on or before June 26th.

The interest rate as of July 1, 2005 while a student is in school is 4.70%. The interest rate for people in repayment is 5.30%.

The interest that accrues on the Subsidized Stafford Loan is paid by the U.S. Department of Education while a student is enrolled at least half time, while in their grace period or in deferment.