Federal Government Raises Interest Rates on Federal Student Loans
On July 1st, 2007, the Federal Government will once again raise interest rates on variable-rate Federal Student Loans with a jump of 8 basis points or .08 percent. To receive the benefit of today's lower interest rate, customers must submit their Federal Consolidation Loan Application by midnight on June 30th.
Federal Student Loan Consolidation is the process which involves paying off of your current Federal Student Loans in full; in return, a new single loan is created with a fixed interest rate that retains all of your Federal Benefits. The new Consolidation Loan interest rate is based on a weighted average of your current Federal Student Loans and is rounded to the nearest .125 percent, which can not raise above 8.25 percent.
Currently, Federal Student Loan interest rates are as follows, compared to the new interest rate effective July 1st, 2007.
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July 1, '06-June 30, '07 |
July 1, '07-June 30,'08 |
Federal Stafford Loans |
|
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| Grace/Deferment |
6.54% |
6.62% |
| Repayment/Forbearance |
7.14% |
7.22% |
| Federal PLUS Loans |
7.94% |
8.02% |
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Student Aid Lending is a rising leader in student loans and student aid services. Bringing together years of industry expertise and solutions to meet educational finance needs, we are working with students to achieve their education goals. In addition to federal (Stafford, Parent PLUS, Graduate PLUS & FFELP Consolidation) and private student loans, Student Aid Lending offers students and parents a resource for College Planning, Loan Education & Debt Management
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