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Marginal Cost Of Funds. The incremental cost of borrowing more money to fund additional asset purchases or investments. In its simplest calculation, the marginal cost of funds is simply the interest rate on the new loan balance.
Stafford loans are popular student loans funded by the federal government. You can either opt for a subsidized Stafford loan or an unsubsidized Stafford loan, as the current interest rate for unsubsidized and subsidized Stafford loans is 4.66% for undergraduate students.