Alma Bowen 770-724-9018

 Interest Rates on Student Loans Drop Again

Effective July 1, 2003, interest rates for federal education loans have dropped dramatically. For borrowers who are repaying Stafford loans that were issued after June 30, 1998, interest rates have fallen from 4.06 percent to 3.42 percent. For students still in college, within their six-month grace period, or in deferment, Stafford rates have fallen from 3.42 to 2.82 percent. PLUS loan rates for parents who get college funds for their offspring dropped from 4.86 percent to 4.22 percent. 

According to the U.S. Department of Education, borrowers with $10,000 in student loan debt and a 10-year standard repayment plan can save approximately $362 in interest over the life of the loan. 

"Obviously, these new rates are good news for Georgia students and their parents," said Shelley Nickel, executive director of the Georgia Student Finance Commission (GSFC). "Most students depend on federal loans to pay part of the costs of going to college and these rates make going to college more affordable.  Even students who receive Georgia's HOPE Scholarship need some additional funds to pay for lodging, meals, and the many other costs of higher education."  

In addition to administering HOPE and other scholarship programs, GSFC makes Stafford and PLUS loans and will be providing the new lower rates to Georgia students and parents. For more information, phone 770-724-9030 in metro Atlanta, toll-free 800-776-6878, or visit the GSFC Web site at www.gsfc.org. 

Borrowers who already have student loan debt do not have to contact their lenders to get the new rate, but will see an automatic drop in interest rates as of July 1.  

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