USA Funds Offers Resources for New Student Loan Interest Rates
USA Funds® offers resources to help counsel student loan borrowers on the new federal student loan interest rate formula approved by the U.S. Congress. President Obama is expected to sign the legislation into law this week. The new formula ties rates on new Stafford and PLUS loans to the 10-year Treasury note rate and provides different rates on Stafford loans to undergraduates and graduate/professional students.
USA Funds offers:
- An interest rate poster listing the current Stafford rates for undergraduates and graduate/professional students as well as the PLUS loan rate.
- A detailed table of current interest rates for Stafford and PLUS loans disbursed between 1998 and 2014.
- A Federal Student Loan Repayment Estimator table, which provides repayment examples — including monthly payment, number of payments and total interest costs. Estimates are for loan balances ranging from $1,000 to $220,000, for the current Stafford loan interest rate for undergraduate borrowers (3.86 percent), current Stafford rate for graduate/professional student borrowers (5.41 percent), and current PLUS loan rate (6.41 percent). The table also provides examples under the maximum statutory interest rates for undergraduate Stafford loan borrowers (8.25 percent), graduate student Stafford loan borrowers (9.5 percent), and PLUS loan borrowers (10.5 percent).
- The USA Funds Student Loan Repayment Calculator permits borrowers to estimate their payments for a wide range of interest rates and loan balances, providing in one calculator results for all the available repayment options — including Income-Based and Pay As You Earn — for Stafford, PLUS and consolidation loans.