A lot of different factors go into determine the rate for a student loan.  This includes rather or not the loan is backed by the Federal Government or if it is a private loan.  It also depends on which Federal student loan that is being applied for. 

For example, a Stafford loan was previously based on an adjustable formula, the rate was set annually based on the prevailing 91 day Treasury bill, but as of July 1, 2006, the rate was fixed at 6.8%.  However, some loan providers will forego a portion of the margin they are entitled to under the Federal program, and will offer rates lower than the standard rate.  It pays to shop around, because not all lenders charge the same rate. 

In fact, some lenders will offer incentives based on payment history and the amount of debt.  Keep in mind that these are the practices of the individual lenders, a Stafford student loan is not based on credit rating, it is based upon need, and so even if your credit rating

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