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Period Begin: July
2006
Period End: June
30, 2007
Posted on 06-07-2006
This
document has been revised. Please see the FFEL Rates posted on June
29, 2006.
Subject: Federal
Stafford, Federal PLUS, Federal SLS, and Federal Consolidation Interest
Rate Calculations for the Period July 1, 2006 - June 30, 2007
The attached charts
show the variable interest rates applicable to the Federal Stafford, Federal
SLS, Federal PLUS, and Federal Consolidation loan programs for the period
July 1, 2006 – June 30, 2007. Interest rates for variable-rate
loans under these programs are determined annually, and are based on the
following:
- Stafford Loans
- based on the bond equivalent rate of 91-day Treasury Bills auctioned
at the final auction held before June 1st of each year. The bond equivalent
rate for 91-day Treasury Bills auctioned on May 30, 2006 is 4.843 percent,
which rounds to 4.84 percent.
- PLUS/SLS Loans
- based on either the bond equivalent rate of 91-day Treasury Bills
auctioned at the final auction held before June 1st of each year, or
the weekly average of the one-year constant maturity Treasury yield
as published for the last calendar week ending on or before June 26th
of each year. The bond equivalent rate for 91-day Treasury Bills auctioned
on May 30, 2006, is 4.843 percent, which rounds to 4.84 percent.
NOTE: The weekly average of the one-year constant maturity Treasury
yield for the last calendar week ending on or before June 26 th will
not be available until the end of June, at which time this memo will
be updated and reissued.
- Consolidation
Loans - for which the loan application was received by an eligible
lender on or after 11/13/97 but prior to 10/1/98 are based on the bond
equivalent rate of 91-day Treasury Bills auctioned at the final auction
held before June 1st of each year, or 4.84 percent.
For the HEAL portion of consolidation loans for which the loan application
was received by an eligible lender on or after 11/13/97, the rate is
based on the average of the bond equivalent rates of the 91-day Treasury
Bills auctioned for the quarter ending June 30 th of each year. NOTE:
The average of the bond equivalent rates of the 91-day Treasury Bills
auctioned for the quarter ending June 30th will not be available until
the end of June, at which time this memo will be updated and reissued.
These rates do
not affect new Federal Stafford or Federal PLUS loans made on or after
July 1, 2006 that are subject to fixed-rates of 6.8% and 8.5%, respectively.
Accounting Division
Office of the Chief Financial Officer
Attachments/Enclosures:
Variable
Interest Rate Charts for the Period July 1, 2006 to June 30, 2007 in PDF
Format, 104KB, 10 pages
Variable
Interest Rate Charts for the Period July 1, 2006 to June 30, 2007 in Microsoft
Word Format, 432KB, 10 pages
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