Dec

A quick view of Student Loan interest rate in 2008

Author: Sally Croft

2008 the year of financial meltdown

Never in the recent past has the world seen such a drastic failure in the financial system. Many big corporate houses have tumbled down.

What are the rippling effects of the Financial Catastrophe?

Currently the labor market in the US is seeing a heavy job loss accounting for about 419,000 jobs per month in the last quarter of 2008; it has increased from 82,000 jobs every month in first 9 months of the year. While measures have been taken by the government to curtail the cascading effects of financial disaster, irreparable losses are sure to happen. Another major area of concern had been the financial aid offered to students. The corrective measures mainly include increased loan limits for Stafford applicants and reduced interest rates on subsidized loans.

A glance at the Student Loan interest rate for the year 2008 – 2009

The federal student loan rates are reviewed on the 1st of July every year. The rates for the year 2008 are as follows.

Name of the Loan	Period	Rate	Fixed or Variable
Federal Stafford Loan Rates (undergraduate subsidized)	Periods, including in-school, repayment periods grace, and deferment	6.00%	Fixed
Federal Stafford Loan Rates (undergraduate unsubsidized and graduate)	Periods, including in-school, grace, deferment, and repayment periods	6.80%	Fixed
Federal PLUS Rate	Periods during repayment, including forbearance and deferment	8.50%	Fixed
School Certified Private Loans	Prime Rate October 1, 2008 – December 31, 2008	5.00%	Variable Rate
Non-Certified Private Loans	Prime Rate October 1, 2008 – December 31, 2008	5.00%	Variable Rate

Interest rates on Stafford and PLUS loans disbursed are calculated using various statutory formulas, percentage add-ons or both.
Normally interest rates on consolidation loans are fixed in nature and are calculated based on the weighted average of the loans being consolidated rounded to the next higher 1/8 percent with a cap of 8.25%.

The rates and details are sure to help you in comparing the various loan options. With the given readymade information now you proceed hunting for the best of loan deals at the most viable prices which are manageable and affordable.

Share and Enjoy:

Perla says:

December 24, 2008 at 11:30 pm

Thanks for the interesting article.

Reader says:

January 27, 2009 at 4:03 pm

Good work! Thank you very much!
I always wanted to write in my blog something like that. Can I take part of your post to my blog?
Of course, I will add backlink?

Sincerely, Timur I.

Vapsuptupboab says:

March 2, 2009 at 10:13 am

Hello everyone!
All of the current talks of the corruption of the economy and loss of jobs has been driving most Americans crazy!
I began looking online for some way to get help and discovered that the government gives free grants.
What I want to know is…. do any of you know what site I can find free online grant applications at?
THANKS!

Sally Croft says:

March 3, 2009 at 12:38 am

@ Reader, thanks for appreciating my efforts, I am glad you found it interesting. Yes you can take some part of it but don’t forget to backlink to my blog

@ Vapsuptupboab, thanks for sharing information with us. Guys, do keep replying to my posts & keep on giving me your wonderful suggestions too.

Good Day to everyone!

Immanuel Halim says:

May 11, 2009 at 7:37 pm

Hello, I found your blog in a new directory of blogs. I dont know how your blog came up, must have been a typo, Your blog looks good. Have a nice day.