Per the National Association of Student Financial Aid Administrators (NASFAA)
The student loan interest rate deal marks a long-awaited compromise by Senate Republicans, Democrats, and the Obama Administration. Under the act interest rates will be based on the 10-year Treasury bill plus the following percentage add-ons:
- 2.05 percent for undergraduate Stafford (subsidized and unsubsidized);
- 3.6 percent for graduate Stafford; and
- 4.6 percent for PLUS (parents and graduate students).
In addition, the deal includes caps: 8.25 percent for undergraduate Stafford; 9.5 percent for graduate Stafford; and 10.5 percent for PLUS. Loans would be “variable-fixed,” meaning students would receive a new rate with each new loan, but then that rate would be fixed for the life of the loan.