On 1 July 2006, the federal student loan interest rate will increase by 1.84 percent. After the increase, the new rate for students repaying Stafford loans issued after July 1998 will be 7.14 percent (up from 5.3 percent), while the revised rate for parents repaying PLUS loans since July 1998 will be 7.94 percent (up from 6.1 percent). For students who are still in school, within the six month grace period, or in deferment, the new rate will be 6.54 percent (up from 4.70).
To learn more about the rate increase, visit the Department of Education's web site.
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