Office of Student Aid : Parents of Students : Parent Newsletter
Parents of Students
Penn State Office of Student Aid Parent Newsletter
Volume 5, Issue 2--June 2007
2007-08 Federal Loan Interest Rates Are Official
The Department of Education has announced fixed loan interest rates will continue at 6.8% for Federal Stafford Loans for the 2007-08 academic year (effective July 1, 2006).
Federal Parent PLUS Loan rates will also continue at their fixed interest rate of 8.5% for 2007-08. As a PLUS Loan borrower, you are free to choose any lender, and our office will provide the needed certification for the loan product you select. However, as a Penn State parent selecting Edamerica as your PLUS lender, you will receive a 1.25% interest rate reduction on your PLUS Loan. Additionally, Edamerica offers a .25% reduction on interest to borrowers who elect the automatic debit option when making monthly payments through American Education Services/Pennsylvania Higher Education Assistance Agency.
For Federal Stafford and Federal Parent PLUS Loans disbursed prior to July 1, 2006, variable interest rates remain in effect and those rates are also available on our Web site.