 TITLE: What Are the Current Interest Rates on Student Loans? CONTENT: How Federal Student Loan Interest Rates Work\n--------------------------------------------\nAlthough the U.S. Department of Education sets the federal loan interest rates for each school year, the numbers are not random. The rates are based on the U.S. Treasury 10-year notes, and then a couple of percentage points are added on as a margin. So if the note is 3% and 2.05% is added, your student loan's interest rate is 5.05%.\nThe good news for people who are new to borrowing money (as most young students are) or who have damaged credit histories, is all federal loans except the PLUS loans are exempt from a credit check. The requirement is you must be a part- or full-time college student—there really aren't any hoops you need to go through. Just complete the Free Application for Federal Student Aid (FAFSA) and wait to see what you're qualified to receive.\nAdditionally, the interest rates on federal loans are always fixed, so your rate will stay the same for the lifespan of the loan—unless you refinance or consolidate the loan (but that would be your choice, not the lender's). END