New Variable Interest Rates for 2007-08

The 2007-08 Interest Rates Charts (110 KB PDF) show the variable interest rates applicable to outstanding Federal Stafford, SLS, PLUS, and Consolidation loans for the period July 1, 2007 through June 30, 2008.

Interest rates for variable-rate loans under these programs are determined annually and are generally based on the bond equivalent rate of 91-day Treasury Bills auctioned before June 1st of each year. The bond equivalent rate for 91-day Treasury Bills auctioned on May 29, 2007 is 4.919 percent, which rounds to 4.92 percent.

Please note that the interest rate for Stafford loans first disbursed on or after July 1, 2006 is fixed at 6.8 percent for the life of the loan. Likewise, the interest rate for both Parent PLUS and Grad PLUS loans first disbursed on or after July 1, 2006 is fixed at 8.5 percent for the life of the loan.

For PLUS and SLS loans first disbursed during the period beginning July 1, 1987 and ending June 30, 1998, the interest rate is determined by adding 3.1 percent or 3.25 percent, as applicable, to the weekly average one-year constant maturity Treasury yield, as published by the Board of Governors of the Federal Reserve System, for the last calendar week ending on or before June 26.

See the variable interest rates for these loans.

For information on adjusting a borrower's repayment terms in response to a change in the interest rate, please see Subsection 10.6.E. of Chapter 10 and Section B.2 of Appendix B of the April 2007 Integrated Common Manual (ICM).

If you have any questions about these interest rates, please call AES at 1-800-443-0646.