## December 10, 2004

Subject: PLUS/SLS Variable Interest Rate for 2005 -- "91-day Treasury
Bill" Method

Dear Partner:

Due to the wording of the promissory notes, some loans are subject to a
calendar-year adjustment of the variable interest rate, based on the
"91-day Treasury Bill" method that existed in statute \[section
427A(c)(4)\] prior to enactment of the Higher Education Technical
Amendments Act of 1987 (Pub. L. 100-50). The rate is equal to the
"average of the 91-day Treasury Bills auctioned during the 12-month
period ending November 30" plus 3.75 percent, not to exceed 12 percent.

Accordingly, we have determined that the variable interest rate for
**calendar year 2005** is **5.05** percent \[1.30% (the 91-day T-bill
average) + 3.75%\].

Please note that this rate applies [only]{.underline} to PLUS/SLS
promissory notes that provide for a calendar year adjustment based on
the "91-day Treasury Bill" method.

Accounting Division

Chief Financial Office

Attachment

+----------------------------+-----------------------------------------+
| # AUCTION DATE             | # BOND EQUIVALENT RATE                  |
+----------------------------+-----------------------------------------+
| **2003**                   | 0.943                                   |
|                            |                                         |
| 12/1                       |                                         |
+----------------------------+-----------------------------------------+
| 12/8                       | 0.915                                   |
+----------------------------+-----------------------------------------+
| 12/15                      | 0.903                                   |
+----------------------------+-----------------------------------------+
| 12/22                      | 0.884                                   |
+----------------------------+-----------------------------------------+
| 12/29                      | 0.901                                   |
+----------------------------+-----------------------------------------+
| **2004**                   | 0.939                                   |
|                            |                                         |
| 1/5                        |                                         |
+----------------------------+-----------------------------------------+
| 1/12                       | 0.887                                   |
+----------------------------+-----------------------------------------+
| 1/20                       | 0.891                                   |
+----------------------------+-----------------------------------------+
| 1/26                       | 0.907                                   |
+----------------------------+-----------------------------------------+
| 2/2                        | 0.939                                   |
+----------------------------+-----------------------------------------+
| 2/9                        | 0.939                                   |
+----------------------------+-----------------------------------------+
| 2/17                       | 0.931                                   |
+----------------------------+-----------------------------------------+
| 2/23                       | 0.947                                   |
+----------------------------+-----------------------------------------+
| 3/1                        | 0.957                                   |
+----------------------------+-----------------------------------------+
| 3/8                        | 0.945                                   |
+----------------------------+-----------------------------------------+
| 3/15                       | 0.961                                   |
+----------------------------+-----------------------------------------+
| 3/22                       | 0.945                                   |
+----------------------------+-----------------------------------------+
| 3/29                       | 0.961                                   |
+----------------------------+-----------------------------------------+
| 4/5                        | 0.945                                   |
+----------------------------+-----------------------------------------+
| 4/12                       | 0.929                                   |
+----------------------------+-----------------------------------------+
| 4/19                       | 0.949                                   |
+----------------------------+-----------------------------------------+
| 4/26                       | 0.985                                   |
+----------------------------+-----------------------------------------+
| 5/3                        | 1.001                                   |
+----------------------------+-----------------------------------------+
| 5/10                       | 1.078                                   |
+----------------------------+-----------------------------------------+
| 5/17                       | 1.058                                   |
+----------------------------+-----------------------------------------+

+----------------------------+-----------------------------------------+
| **2004 (continued)**       | 1.066                                   |
|                            |                                         |
| 5/24                       |                                         |
+----------------------------+-----------------------------------------+
| 6/1                        | 1.150                                   |
+----------------------------+-----------------------------------------+
| 6/7                        | 1.251                                   |
+----------------------------+-----------------------------------------+
| 6/14                       | 1.413                                   |
+----------------------------+-----------------------------------------+
| 6/21                       | 1.336                                   |
+----------------------------+-----------------------------------------+
| 6/28                       | 1.381                                   |
+----------------------------+-----------------------------------------+
| 7/6                        | 1.344                                   |
+----------------------------+-----------------------------------------+
| 7/12                       | 1.336                                   |
+----------------------------+-----------------------------------------+
| 7/19                       | 1.352                                   |
+----------------------------+-----------------------------------------+
| 7/26                       | 1.449                                   |
+----------------------------+-----------------------------------------+
| 8/2                        | 1.490                                   |
+----------------------------+-----------------------------------------+
| 8/9                        | 1.497                                   |
+----------------------------+-----------------------------------------+
| 8/16                       | 1.498                                   |
+----------------------------+-----------------------------------------+
| 8/23                       | 1.541                                   |
+----------------------------+-----------------------------------------+
| 8/30                       | 1.607                                   |
+----------------------------+-----------------------------------------+
| 9/7                        | 1.663                                   |
+----------------------------+-----------------------------------------+
| 9/13                       | 1.671                                   |
+----------------------------+-----------------------------------------+
| 9/20                       | 1.716                                   |
+----------------------------+-----------------------------------------+
| 9/27                       | 1.741                                   |
+----------------------------+-----------------------------------------+
| 10/4                       | 1.716                                   |
+----------------------------+-----------------------------------------+
| 10/12                      | 1.711                                   |
+----------------------------+-----------------------------------------+
| 10/18                      | 1.803                                   |
+----------------------------+-----------------------------------------+
| 10/25                      | 1.890                                   |
+----------------------------+-----------------------------------------+
| 11/1                       | 1.987                                   |
+----------------------------+-----------------------------------------+
| 11/8                       | 2.084                                   |
+----------------------------+-----------------------------------------+
| 11/15                      | 2.115                                   |
+----------------------------+-----------------------------------------+
| 11/22                      | 2.197                                   |
+----------------------------+-----------------------------------------+
| # 11/30                    | 2.238                                   |
+----------------------------+-----------------------------------------+
| # TOTAL                    | 68.883                                  |
+----------------------------+-----------------------------------------+
| # AVERAGE: 1.30            |                                         |
+----------------------------+-----------------------------------------+