Frankfort, Ky. (June 18, 2004) – Federal student loan interest rates will drop to an all-time low on July 1, bringing significant savings to students and parents.

         Federal Stafford Loan borrowers in repayment will pay 3.37 percent, while those who are still in school, within the six-month grace period, or in deferment will pay 2.77 percent.Interest rates on PLUS Loans for parents will drop to 4.17 percent.

         “The historically low rates, coupled with The Student Loan People’s BestStart, Best in Class, and Best in Care programs, make student loans more affordable and attractive than they’ve ever been,” said Dr. Joe L. McCormick, Executive Director of The Student Loan People^sm, the state’s only nonprofit student loan provider.

         In addition to a zero origination fee, BestStart offers principal and interest rate reductions to all borrowers for both on-time and automatic payments.

All teachers who teach in Kentucky and have loans from The Student Loan People can receive interest forgiveness through the Best in Class program. Teachers of math, science, English as a second language, or special education can receive up to 20% loan forgiveness for each year of service.

         Interest and/or loan forgiveness are offered through the Best in Care program to assist registered nurses who practice in Kentucky. These benefits will also be available to licensed practical and vocational nurses beginning July 1.

Effective for the 2004-2005 academic year, The Student Loan People’s Consolidation Loan also offers principal and interest rate reductions for both on-time and automatic payments.

The Student Loan People offers the lowest cost student loans in Kentucky. So far this year, Kentuckians have saved $6.6 million with The Student Loan People’s zero-origination-fee loan and will save millions more through interest and principal forgiveness.

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