Interest Rates on Student Loans?

Hi, everyone. I have specific Qs about student loans for people who have experience in paying back or dealing with student loans. First of all, I am a recent college graduate and I will have to start paying back my student loans in 6 months after grace period ends.


Today, I looked at the interest rates of all my loans. And they all have interest rates around 6.5%. All my loans are Federal Direct Stafford Subsidized Loans. Until I checked today (I should have checked it sonner), I expected the interest rate to be around 3-4%.


1. Is my interest rate too high compared to other students?


2. Is there any way to reduce the rate through Fed. Gov. before I start paying back the loan?


3. I get so many calls from bunch of private loan companies saying they will get me the lowest interest rate possible. Should I use one of them as a last resort?


Thanks in advance for any insights.

Interest Rates on Student Loans?
Congratulations on recently graduating college, that is quite an accomplishment and you should feel very proud.





First of all, were any of your Federal Subsidized Stafford Loans taken out after July 1st, 2006? The reason I ask this is because this will make a difference on your interest rate on those particular loans. When dealing with your loans taken out before July 1st, 2006 those interest rates on those loans are Variable interest rates which means they have been changing every July 1st.





As of right now you are carrying the Deferment/In Grace interest rate of 6.54% on your Variable interest rate Direct Stafford Subsidized Loans. However, once you enter Repayment status when your Grace period ends, your interest rate will go up .6% to 7.14%. As compared to other students it depends on when they took out their loans, and what kind of loans they took out, so it is rather difficult to address that part of you question.





The only way to fix your interest rate on your Federal Stafford Loans is through the FFELP Consolidation Loan Program; this is why those companies are contacting you. If you do not consolidate your Federal Student Loans, your interest rate will remain Variable and will be subject to whatever the Federal Government sets the interest rate at every July 1st. Keep in mind, when those companies are stating they will get you the lowest interest rate possible, this just means they will get you the lowest interest rate possible as dictated by the Federal Government. I hope this sheds a little light on the situation for you. For more detailed information on the FFELP Consolidation Loan Program as well as details on current interest rates please visit the source below.
Reply:Below link will certainly help you.