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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.
The fixed interest rate for undergraduate Stafford loans first disbursed on or after July 1, 2016 and before July 1, 2017 is 3.76%. The rate for graduate students is 5.31%. Older Loans: Most Stafford loans taken out before July 2006 have variable rates that are capped at 8.25%.