What’s the interest rate on these loans?
The interest rate is variable (might change each year) but does not exceed 8.25 percent. For July 1, 2004 to June 30, 2005, the interest rate for loans in repayment was 3.42 percent. Interest rates are adjusted each year on July 1. You’ll be notified of interest rate changes throughout the life of your loan.

If you have subsidized loans, you won’t be charged interest while you’re enrolled in school at least half time, during a grace period, or during authorized periods of deferment (click here for more information). Interest will accrue (accumulate) when you enter repayment or a period of forbearance (click here for more information).

If you have unsubsidized loans, you’ll be charged interest from the day the loan is disbursed until it’s paid in full, including in-school, grace, deferment, and forbearance periods. You can pay the interest during these periods, or it can be capitalized (click here for more information).
- posted by Mark Pane @ 5:13 PM