| Publication
Date: November 10, 2005 FRPart: |
Page Numbers: 67997-67999
Notice of interest rates for the Federal Family Education Loan Program for the period July 1, 2005, through June 30, 2006.
Posted on 11-10-2005
[Federal Register: November 9, 2005 (Volume 70, Number 216)]
[Notices]
[Page 67997-67999]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr09no05-52]
-----------------------------------------------------------------------
DEPARTMENT OF EDUCATION
Federal Family Education Loan Program
AGENCY: Federal Student Aid, Department of Education.
ACTION: Notice of interest rates for the Federal Family Education Loan Program for the period July 1, 2005, through June 30, 2006.
-----------------------------------------------------------------------
SUMMARY: The Chief Operating Officer for Federal Student Aid announces the interest rates for loans made under the Federal Family Education Loan (FFEL)
[[Page 67998]]
Program for the period July 1, 2005 through June 30, 2006.
FOR FURTHER INFORMATION
CONTACT: Don Watson, U.S. Department of Education, room 114I2, UCP, 400 Maryland
Avenue, SW., Washington, DC
20202-5400. Telephone: (202) 377-4008. If you use a telecommunications device
for the deaf (TDD), you may call the Federal Relay Service (FRS) at 1-800-877-8339.
Individuals with disabilities may obtain this document in an alternative format
(e.g., Braille, large print, audiotape, or computer diskette) on request to
the contact person listed under FOR FURTHER INFORMATION CONTACT.
SUPPLEMENTARY INFORMATION:
General
Under title IV, part B
of the Higher Education Act of 1965, as amended (HEA), 20 U.S.C. section 1071,
et seq., most loans made to student and parent borrowers under the FFEL Program
have variable interest rates. The formulas for determining the interest on variable
rate FFEL Program loans are established in section 427A of the HEA (20 U.S.C.
1077a).
The interest rates on variable-rate loans are determined annually and apply
to the following 12-month period beginning July 1 and ending June 30. As described
below, interest rate caps apply to most FFEL Program loans. FFEL interest rate
formulas use the bond equivalent rate of 91-day Treasury bills auctioned at
the final auction held before June 1 of each year plus a statutorily established
add-on to determine the variable interest rate for--FFEL fixed-rate Stafford
loans first disbursed before
October 1, 1992, that have been converted to variable-rate loans; All FFEL Subsidized
and Unsubsidized Stafford Loans first disbursed on or after October 1, 1992;
FFEL PLUS loans first disbursed on or after July 1, 1998; and FFEL Consolidation
Loans for which the Consolidation Loan application was received by the lender
on or after November 13, 1997, and before October 1, 1998. The bond equivalent
rate of the 91-day Treasury bills auctioned on May 31, 2005, which is used to
calculate the interest rates for the one-year period beginning on July 1, 2005,
is 2.998 percent, which is rounded to 3.00 percent. For FFEL PLUS loans first
disbursed before July 1, 1998, interest rates are calculated based on the weekly
average of a 1-year constant maturity Treasury yield, as published by the Board
of Governors of the Federal Reserve System, for the last calendar week ending
on or before June 26. The weekly average of the 1-year constant maturity Treasury
yield for the last calendar week ending on or before June 27, 2005 is 3.40 percent.
Interest Rates for ``Converted'' Variable-rate FFEL Stafford Loans
1. Under section 427A(i)(7)
of the HEA (20 U.S.C. 1077a (i)(7)) loans that were originally made with a fixed
interest rate of eight percent with an increase to ten percent four years after
commencement of the repayment period were converted to a variable interest rate
that may not exceed ten percent: The interest rate for these loans for the
period from July 1, 2005, through June 30, 2006, is 6.25 percent (3.00 percent
plus 3.25 percent).
2. Loans with fixed interest rates of seven percent, eight percent, nine percent,
or eight percent with an increase to ten percent four years after commencement
of the repayment period, that were subject to the provisions of section 427A(i)(3)
of the HEA (20 U.S.C. 1077a(i)(3)) and were converted to variable-rate loans--the
interest rate may not exceed seven percent, eight percent, nine percent, or
ten percent, respectively: The interest rate for the period from July 1, 2005,
through June 30, 2006, is 6.10 percent (3.00 percent plus 3.1 percent).
Interest Rates for Variable-Rate FFEL Stafford Loans
1. FFEL Stafford loans
made to ``new'' borrowers for which the first disbursement was made (a) on or
after October 1, 1992, but before July 1, 1994, or (b) on or after July 1, 1994,
for a period of enrollment ending before July 1, 1994 (i.e. a late disbursement)--the
interest rate may not exceed nine percent: The interest rate for the
period from July 1, 2005, through June 30, 2006, is 6.10 percent (3.00 percent
plus 3.1 percent).
2. FFEL Stafford loans made to all borrowers, regardless of prior borrowing,
for periods of enrollment that include or begin on or after July 1, 1994, for
which the first disbursement was made on or after July 1, 1994, but before July
1, 1995--the interest rate may not exceed 8.25 percent: The interest rate for
the period from July 1, 2005,
through June 30, 2006, is 6.10 percent (3.00 percent plus 3.1 percent).
3. FFEL Stafford loans made to all borrowers, regardless of prior borrowing,
on or after July 1, 1995, but before July 1, 1998--the interest rate may not
exceed 8.25 percent:
(a) During the in-school, grace, or deferment period: The interest rate for
the period from July 1, 2005, through June 30, 2006, is 5.50 percent (3.00 percent
plus 2.5 percent); and (b) During all other periods: The interest rate for the
period from July 1, 2005, through June 30, 2006, is 6.10 percent (3.00 percent
plus
3.1 percent).
4. FFEL Stafford loans, first disbursed on or after July 1, 1998, but before
July 1, 2006--the interest rate may not exceed 8.25 percent: (a) During the
in-school, grace, and deferment periods: The interest rate for the period from
July 1, 2005, through June 30, 2006, is 4.70 percent (3.00 percent plus 1.7
percent); and (b) During all other periods: The interest rate for the period
from July 1, 2005, through June 30, 2006, is 5.30 percent (3.00 percent plus
2.3 percent).
Interest Rates for FFEL PLUS and FFEL Supplemental Loans for Students (SLS) Loans
1. Variable-rate FFEL
PLUS and FFEL SLS loans first disbursed before October 1, 1992--the interest
rate may not exceed 12 percent: The interest rate for the period from July 1,
2005, through June 30, 2006, is 6.65 percent (3.40 percent plus 3.25 percent).
2. FFEL SLS loans first disbursed on or after October 1, 1992, for a period
of enrollment beginning before July 1, 1994--the interest rate may not exceed
11 percent: The interest rate for the period from July 1, 2005, through June
30, 2006, is 6.50 percent (3.40 percent plus 3.10 percent).
3. FFEL PLUS loans first disbursed on or after October 1, 1992, but before July
1, 1994--the interest rate may not exceed ten percent: The interest rate for
the period from July 1, 2005, through June 30, 2006, is 6.50 percent (3.40 percent
plus 3.10 percent).
4. FFEL PLUS loans first disbursed on or after July 1, 1994, but prior to July
1, 1998--the interest rate may not exceed nine percent: The interest rate for
the period from July 1, 2005, through June 30, 2006, is 6.50 percent (3.40 percent
plus 3.10 percent).
5. FFEL PLUS loans first disbursed on or after July 1, 1998, and before July
1, 2006--the interest rate may not exceed nine percent: The interest rate for
the period from July 1, 2005, through June 30, 2006, is 6.10 percent (3.00 percent
plus 3.1 percent).
Interest Rates for FFEL Consolidation Loans
1. FFEL Consolidation
loans for which the consolidation loan was made by the lender before July 1,
1994--the interest rate is the weighted average of the interest rates on the
loans consolidated, rounded to the nearest whole percent, but may not be less
than nine percent.
2. FFEL Consolidation loans for which the consolidation loan was made by the
lender on or after July 1, 1994, and before November 13, 1997--the interest
rate is the weighted average of the interest rates on the loans consolidated,
rounded to the nearest whole percent.
3. FFEL Consolidation loans for which the consolidation loan application was
received by the lender on or after November 13, 1997, and before October 1,
1998--the interest rate may not exceed 8.25 percent: The interest rate for the
period from July 1, 2005, through June 30, 2006, is 6.10 percent (3.00 percent
plus 3.1 percent).
4. FFEL Consolidation loans for which the consolidation loan application was
received by the lender on or after October 1, 1998, and before July 1, 2006--the
interest rate may not exceed 8.25 percent: The interest rate is the weighted
average of the interest rates on the loans consolidated, rounded to the nearest
higher \1/8\ of one percent.
5. If a portion of a Consolidation loan is attributable to a loan made under
subpart I of part A of title VII of the Public Health Service Act, the maximum
interest rate for that portion of a Consolidation loan is determined annually,
for each 12-month period beginning on July 1 and ending on June 30. The interest
rate equals the average of the bond equivalent rates of the 91-day Treasury
bills auctioned for the quarter ending prior to July 1, plus three percent.
For the quarter ending before July 1, 2005, the average 91-day Treasury bill
rate was 2.943 percent (rounded to 2.94 percent). The maximum interest rate
for the period from July 1, 2005, through June 30, 2006,
is 5.94 percent (2.94 percent plus 3.0 percent).
Electronic Access to This Document: You may view this document, as well as all
other documents of this Department published in the Federal
Register, in text or Adobe Portable Document Format (PDF) on the Internet at
the following site: http://www.ed.gov/news/federegister.
To use PDF you must have Adobe Acrobat Reader, which is available free at this site. If you have questions about using PDF, call the U.S. Government Printing Office (GPO), toll free at 1-888-293-6498; or in the Washington, DC area at (202) 512-1530.
Note: The official version of this document is the document published in the
Federal Register. Free Internet access to the official edition of the Federal
Register and the Code of Federal Regulations is available on GPO Access at:
http://www.gpoaccess.gov/nara/index.html
Program Authority: 20 U.S.C. 1087 et seq.
Dated: November 3, 2005.
Theresa S. Shaw, Chief Operating Officer, Federal Student Aid.
[FR Doc. 05-22365 Filed 11-8-05; 8:45 am]
BILLING CODE 4000-01-P
Attachments/Enclosures:
This federal register is in pdf.