A 1 percent fee will be deducted from each loan disbursement. This fee is charged and kept by the Department of Education.
Subsidized Loan Interest Rate
The interest rate for new Subsidized loans for undergraduate study disbursed between July 1, 2011 and June 30, 2012 will be fixed at 3.4 percent. The federal government pays the interest while you are in college and during the first six months after you drop below half-time enrollment.
Unsubsidized Loan Interest Rate
Unsubsidized loans have a fixed 6.8 percent rate for the life of the loan.