First disbursed on or after 7/1/98 through 6/30/06

In-school, grace, and deferment periods: Variable interest rate—equal to the 91-day Treasury bill rate plus 1.7%, not to exceed 8.25%. 

Repayment and forbearance periods: Variable interest rate—equal to the 91-day Treasury bill rate plus 2.3%, not to exceed 8.25%. 

First disbursed on or after 7/1/95 through 6/30/98

In-school, grace, and deferment periods: Variable interest rate—equal to the 91-day Treasury bill rate plus 2.5%, not to exceed 8.25%. 

Repayment and forbearance periods: Variable interest rate—equal to the 91-day Treasury bill rate plus 3.1%, not to exceed 8.25%. 

First disbursement on/after 7/23/92 through 6/30/94 to a borrower with an outstanding 7%, 8%, 9%, or 8%/10% Stafford loan.

Original interest rate was the same as on the borrower’s previous Stafford loans (i.e., a fixed rate of 7%, 8%, 9%, or 8%/10%). These loans were subject to excess interest rebates and converted to a variable interest rate—equal to the 91-day Treasury bill* rate plus 3.1%, with a cap equal to the loan’s previous fixed rate (i.e., 7%, 8%, 9%, or 10%).

Loans subject to 1986 Windfall provisions

Variable interest rate—equal to the 91-day Treasury bill rate plus 3.25%. 

Loans subject to 1986 Windfall Provisions include 8/10% adjustable rate Federal Stafford Loans whose first disbursement was made prior to 7/23/92, and 8/10% adjustable rate Federal Stafford Loans with a first disbursement was made between 7/23/92 and 9/30/92 to a new borrower. These loans are to be converted to a variable interest rate when the interest rate increases from 8% to 10% with a variable interest rate cap of 10%.

1st disbursed on or after 7/1/94 to 6/30/06

1st disbursed on or after 10/1/92 to 6/30/94

 1st disbursed prior to 10/1/92

Consolidation applications received by the lender on or after 11/13/97 and through 9/30/98

Variable interest rate—equal to the 91-day Treasury bill rate plus 3.10%, not to exceed 8.25%

Consolidation applications received by the lender on or after 10/1/98

Fixed interest rate— The interest rate is the weighted average of the interest rates on the loans being consolidated, rounded to the nearest higher 1/8th of one percent. The interest rate may not exceed the maximum rate or cap.  The interest rate is capped at 8.25% but may be lower as applicable.