The interest rates on Federally Guaranteed Student Loans are based on the Treasury Bill rate as determined by the last Treasury Bill auction in May of each year. These rates go into effect July 1st and remain in effect until July 1st of the following year. Due to ongoing situations in the economy the Treasury Bill rates, in effect as of July 1, 2003 have dropped student loan interest rates to their lowest levels since the inception of the Federal Student Loan program. Look below to see what your interest rates were prior to July 1st and what they have dropped to: Copyright @ 2004. Student-Loan-Refinance.com. All rights reserved.