Interest on your loan

Federal law sets the maximum interest rates and fees.  You may be able to deduct some of the interest you pay on student loans on your federal individual income tax return.

• Federal Loan Prior to July 1st 2006, rate was variable.

• Effective July 1st, 2006 the rate changed to fixed.

• Subsidized Loans—interest is paid by the government while you are enrolled at least half-time.

• Unsubsidized Loans and Graduate PLUS—you are responsible for the interest while attending school. You do not have to pay the interest while in school (it can be capitalized - added to your principal for payment later).  However, postponing interest payments may cost you a significant amount of money over the life of your loan.

• For additional information on interest rates, go to current rate.