Student Loan Interest Rates
Drop to Historic Low
June 6, 2003 - The Department of Education announced
May 28 that the interest rates charged on many federal Stafford
education loans will drop to a historic low of 3.42 percent,
effective July 1. For loans that are classified as in-school,
grace period, or deferment, the rates will drop to 2.82 percent.
The new rates are effective for loans disbursed since July
1998; earlier loans may be subject to slightly higher interest
rates. For loans disbursed after July 1998, Stafford loan
interest rates are calculated based on a statutory formula
of the 91-day Treasury bill plus 1.7 percent for loans that
are in school, grace and deferment; and 91-day Treasury bill
plus 2.3 percent for loans in repayment. Rates are variable,
changing each July 1 based on the rates generated at the last
auction in May each year.
Information:
Jonathan Fishburn, Director, Research, Education and Veterans' Legislative Affairs
AAMC Office of Governmental Relations
jfishburn@aamc.org
(202) 828-0525
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