Q: What are the interest rates on federal student loans (specifically Subsidized Stafford Loans), and must I apply separately for each federal student loan?
A: Subsidized Stafford Loans that were made to undergraduate students with a first disbursement date between July 1, 2009, and June 30, 2010, have a fixed interest rate of 5.6%. Subsidized Stafford Loans made to graduate students have a fixed interest rate of 6.8%.
All unsubsidized Stafford Loans (for both undergraduate and graduate students) have a fixed interest rate of 6.8%. The FFEL PLUS Loans have a fixed interest rate of 8.5%. The Direct PLUS Loans have a fixed interest rate of 7.9%, and the Federal Perkins Loans have an interest rate of 5%.
The federal student loan interest rates listed above were obtained from www.fafsa.gov, and pertain to the 2010-2011 school year. For changes made to federal student loan interest rates for future dates, refer to www.fafsa.gov.
You do not have to apply separately for each individual federal student loan. You must file a FAFSA (located at www.fafsa.gov), which is the Free Application for Federal Student Aid to apply for all federal student loans. After completion of the FAFSA, the U.S. Department of Education will send you a Student Aid Report (SAR), which will have the results of which federal student loans you are eligible for and at what amounts.
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