Interest:
Amount charged to the borrower for the privilege of using the lender's money. Interest is usually calculated as a percentage of the principal balance of the loan. The percentage rate may be fixed for the life of the loan, or it may be variable, depending on the terms of the loan.
Fees:
For all Federal Direct Subsidized and Unsubsidized loans, there is a 1.5% loan origination fee and an up-front 1% rebate, which means 0.5% of the total amount of the loan is automatically deducted upon disbursement by the U.S. Department of Education. To retain the up-front rebate, borrowers who are in loan repayment must make the initial 12 consecutive monthly payments on time. For more information contact the Direct Loan Servicing Center at 800-848-0979.
For all Federal Direct Graduate and Parent PLUS Loans, there is a 4.0% loan origination fee and an up-front 1.5% rebate, which means 2.5% of the total amount of the loan is automatically deducted upon disbursement by the U.S. Department of Education. To retain the up-front rebate, borrowers who are in loan repayment must make the initial 12 consecutive monthly payments on time. For more information contact the Direct Loan Servicing Center at 800-848-0979.
Loans Disbursed on or After July 1, 2006 |
| Loan Program |
Interest Rate
in School, etc |
Interest Rate
in Repayment |
Fixed/Variable |
| Federal Stafford Subsidized Loan |
6.8%* |
6.8%* |
fixed |
| Federal Stafford Unsubsidized Loan |
6.8%* |
6.8%* |
fixed |
| PLUS Loans |
8.5% |
8.5% |
fixed |
| Federal Perkins Loan |
5.0% |
5.0% |
fixed |
| Federal Nursing Loan |
5.0% |
5.0% |
fixed |
| KU Endowment Loan |
5.0% |
5.0% |
fixed |
| Alternative Loans |
varies depending
on lender |
varies depending
on lender |
variable |
**Federal Stafford Subsidized Loan
for Undergraduate Borrowers ONLY |
6.0% |
6.0% |
variable |
| |
| *This rate is effective for loans disbursed on or after July 1, 2006. Stafford Loans disbursed prior to that date will continue to have a variable interest rate based on the 91-day T-bill + 1.7% not to exceed 8.25%. |
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**Subsidized Stafford loans for undergraduate students has a declining fixed interest rate. July 1, 2008–August 30, 2009 the interest rate is 6%
July 1, 2009 –August 30, 2010 the interest rate is 5.6%
July 1, 2010 –August 30, 2011 the interest rate is 4.5%
July 1, 2011 –August 30, 2012 the interest rate is 3.4%
Beginning July 1, 2012 the rate is 6.8% |
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| |
Loans First Disbursed July 1, 1998 and June 30, 2006 |
| Loan Program |
Interest Rate
in School, etc |
Interest Rate
in Repayment |
Fixed/Variable |
| Federal Stafford Subsidized Loan |
3.6% |
4.2% |
variable |
| Federal Stafford Unsubsidized Loan |
3.6% |
4.2% |
variable |
| Federal Perkins Loan |
5.0% |
5.0% |
fixed |
| Federal Nursing Loan |
5.0% |
5.0% |
fixed |
| Parent Plus Loan |
5.0% |
5.0% |
variable |
| KU Endowment Loan |
5.0% |
5.0% |
fixed |
| Alternative Loans |
varies depending
on lender |
varies depending
on lender |
variable |
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The University of Kansas Medical Center