Upward interest adjustment on some student loans
For loans first disbursed between July 1, 1998 and June 30, 2006, the rates on Stafford loans are 6.62% while in school, and 7.22% in repayment. The PLUS loan rate becomes 8.02%.
The increase in rates means there may be some benefit to borrowers in consolidating their variable-rate loans before July 1, 2007.
Loans disbursed after June 30, 2006 are subject to fixed rates of 6.80% (Stafford), 7.90% (Direct PLUS), or 8.50% (FFEL PLUS).