Are you interested in learning about Stafford loans, more specifically, Stafford loan rates? You may already know that Stafford loans are educational loans from the government that have universally lower interest rates than private commercial loans. That said, the interest on Stafford loans is not exactly standardized and may vary. Stafford loan rates are usually dependent on the date that the loan was disbursed.

Other factors that will determine Stafford loan rates include the rate type, whether it is a variable or fixed plan, as well as the subsidized interest rate and unsubsidized interest rate. For example, on a loan disbursement that takes place before July 1, 1998, on a variable plan, and on a plan of 91-Day T-Bill + 3.1%, the current rate for the 2007-2008 time period would be 8.02%. The future rate, for 2008-2009 would be 5.01%. On the other hand, for a future loan with a date of July 1, 2012 to June 30, 2013, and on a fixed rate, the rate might be closer to 6.8%.

For variable rate plans, the rates are set every year using the price of the 91-day Treasury bill on the last Monday of the month of May. They become effective for the next year on the date of July 1. Recently, it was announced that in July of 2008 that the base rate for variable rate Stafford loans would be adjusted to 1.91%. That also means that loans issued before July 1, 1998 would have to be adjusted to a new rate of 5.01% and loans issued July 1998 thru the end of June 30th, 2006 would have to be adjusted to a rate of 4.21%.

Furthermore, as of July 1, 2006 all Stafford loans are now issued with a fixed interest rate. For direct loans, which are loans given by the United States Department of Education through the Federal Direct Student Loan Program, as well as most other loan plans, the rate will be set at 6.80% until further notice.

As new Stafford loan rates go into effect, some providers are actually foregoing portions of the margin that they are legally entitled to. They do this for the benefit of their borrowers and to remain competitive. For instance, they may offer interest rates lower than the standard rate, along with price incentives based on reliable payment history, and other rate or principal reductions.

As you can see, Stafford loans are still very desirable as they offer less stringent terms for student borrowers, even if the loan qualifications remain high.