Great news for those who have outstanding variable Federal Stafford and PLUS Loans. On July 1, 2008, the interest rates on the following loans are set to decrease:
- Stafford Loans in repayment status will decrease from 7.22 to 4.21 percent
- In-school, grace or deferment status Stafford Loans will decrease from 6.62 to 3.61 percent
- PLUS Loans will decrease from 8.02 to 5.01 percent
These rates will be in effect through June 30, 2009 and only apply to loans issued on or after July 1, 1998 and before July 1, 2006.
Learn more about the basics of student loans, how interest rate changes may affect your loans, and how to refinance
your student loans.
Source: American Institute of CPAs