Federal Student Loan Interest Rates

This U.S. Department of Education news release announces that federal student loan interest rates will drop to the lowest rate in decades. The new rate for borrowers repaying Stafford loans issued beginning July 1998 is 4.06% the rate is 3.46% for students who are in school, within the six month grace period, or in deferment.

For Federal Student Loans between July 1, 2002 and June 30, 2003.

Stafford Loan 
3.46% during in-school, grace period and deferment.
4.06% during repayment

PLUS Loan
4.86%