June 1 , 2006
Volume 2006– Issue 28

Interest Rates For Fiscal Year 2006-2007

Effective July 1, 2006 all new Federal Family Education Loan Program (FFELP) loans will carry a fixed interest rate. For loans first disbursed on or after July 1, 2006 the following rates will apply:

Stafford, both subsidized and unsubsidized in-school, grace, deferment, repayment or forbearance: 6.8%

PLUS Loans (FFELP): 8.5%

The U.S. Department of the Treasury held an auction of the 91-day U.S. Treasury bills on Tuesday, May 30, 2006. The bond equivalent rate of these notes determines FFELP rates for the coming fiscal year for variable rate loans first disbursed between July 1, 1998 and June 30, 2006.  The variable Stafford and PLUS loan interest rates for the period July 1, 2006 through June 30, 2007 will be as follows:

Stafford, In-school, grace and deferment periods: 6.54%

Stafford, Repayment and forbearance periods: 7.14%

PLUS Loans: 7.94%

These rates will also affect the weighted average interest rate for such loans that may be consolidated during the next fiscal year.

Any questions related to this Bulletin should be directed to the UHEAA Policy and Training Department at 801.321.7166 or by e-mail to mjohnson@utahsbr.edu.

 

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