unsubsidized interest rate

[ccCrazie]

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This should probably go in the financial aid section but I doubt many people look there. I haven't submitted my FAFSA form yet because I'm waiting for all my W2's, but I'm wonderin what kind of interest rates I can expect. I know I'm not going to get financial aid from anyone so my loans will be unsubsidized Stafford I guess. Anyone know what the interest rate is on those? Also since their unsubsidized I'll accrue interest while I'm in school too, right? Any information would be helpful because most of what I'm finding just tells me the cap of 8.25%, not the current rate. Thanks in advance.

 

[Adcadet]

From http://www.finaid.org/loans/studentloan.phtml:

Stafford Loans have variable interest rates (based on 91-day T-bill rate + 1.7% during school with an additional .6% increase upon graduation) capped at 8.25% or less, depending on yearly adjustments. All lenders offer the same rate for the Stafford Loan, although some give discounts for on-time and electronic payment.


Looks like the 91 Day T Bill will remain 1.6-2.2% Taken from (http://www.forecasts.org/interest-rate/91-day-treasury-bill-yield.htm)


So, my guess is that the Stafford will run you under 4% for the first half of this year. Sheesh that's low. It's a great time for students.

 

[Adcadet]

More info. From http://www.isac1.org/prof/interest.html

Federal Stafford and PLUS loans have a variable interest rate that is adjusted annually on July 1 based on the bond equivalent rate of the 91-day Treasury-Bill (T-bill) auction prior to June 1 of that year and also have a set cap (i.e. maximum rate). The current interest rates indicated below are effective July 1, 2002 through June 30, 2003. Additional explanation on how the variable rates are calculated is provided following the current interest rates.



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Current Interest Rates

Federal subsidized and unsubsidized Stafford loans
While the borrower is in school, during the grace period and during periods of deferment......3.46%

During repayment and forbearance......4.06%


Federal PLUS loans.....4.86%

 

[SMW]

Originally posted by ccCrazie
I know I'm not going to get financial aid from anyone so my loans will be unsubsidized Stafford I guess. Anyone know what the interest rate is on those? Also since their unsubsidized I'll accrue interest while I'm in school too, right?

I think everyone who borrows gets a mix of subsidized and unsubsidized Stafford loans. It's something like a max of $8500 subsidized and $30,000 unsubsidized. My figures may be off, so don't quote me.