CFDA Number: 84.032
Program Type: Guaranteed-insured loans
Also Known As: FFEL Program; FFEL loans. FFEL includes four components: Stafford Loans, Unsubsidized Stafford Loans,
Federal PLUS Loans, and Federal Consolidation Loans.
Note: loans are no longer being made under this program. All new loans will be made under the Direct Loan program.
| Loan Type |
Characteristics |
Interest Rate for New Loans as of July 1, 2006 |
| Stafford |
Interest paid by government when student is in school and during periods of grace and deferment. |
6.8% |
| Unsubsidized Stafford |
Interest NOT paid by government when student is in school nor during periods of grace and deferment. |
6.8% |
| PLUS |
Enables parents to borrow to pay the costs of higher education for their dependent undergraduates and graduate students to pay their costs. |
8.5% |
| Consolidation |
Combines more than one federal education loan into a single loan. |
Weighted average of loans rounded upward to nearest 1/8%. Capped at 8.25% |
Interest rate for loans made before July 1, 2006: For Stafford and Unsubsidized
Stafford, in-school rate is 91-day T-Bill + 1.7%; in-repayment rate is 91-day
T-Bill + 2.3%; both rates are capped at 8.25%. For PLUS, in-repayment rate is
91-day T-Bill + 3.1% and is capped at 9%. For Consolidation, see above.
In addition, certain new borrowers after Oct. 1, 1998, who teach for five
consecutive years in qualifying schools serving low-income students may qualify
for up to $5,000, and, in the case of highly qualified mathematics, science, and
special education teachers, up to $17,500, in loan forgiveness.
FSA Handbook: Direct Loan and FFEL Programs
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