## December 10, 2003

Subject: PLUS/SLS Variable Interest Rate for 2004 -- "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 2004** is **4.81** percent \[1.06% (the 91-day T-bill
average) + 3.75%\].

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                  |
+----------------------------+-----------------------------------------+
| **2002**                   | 1.231                                   |
|                            |                                         |
| 12/2                       |                                         |
+----------------------------+-----------------------------------------+
| 12/9                       | 1.215                                   |
+----------------------------+-----------------------------------------+
| 12/16                      | 1.219                                   |
+----------------------------+-----------------------------------------+
| 12/23                      | 1.207                                   |
+----------------------------+-----------------------------------------+
| 12/30                      | 1.207                                   |
+----------------------------+-----------------------------------------+
| **2003**                   | 1.207                                   |
|                            |                                         |
| 1/6                        |                                         |
+----------------------------+-----------------------------------------+
| 1/13                       | 1.199                                   |
+----------------------------+-----------------------------------------+
| 1/21                       | 1.179                                   |
+----------------------------+-----------------------------------------+
| 1/27                       | 1.159                                   |
+----------------------------+-----------------------------------------+
| 2/3                        | 1.175                                   |
+----------------------------+-----------------------------------------+
| 2/10                       | 1.171                                   |
+----------------------------+-----------------------------------------+
| 2/18                       | 1.179                                   |
+----------------------------+-----------------------------------------+
| 2/24                       | 1.195                                   |
+----------------------------+-----------------------------------------+
| 3/3                        | 1.198                                   |
+----------------------------+-----------------------------------------+
| 3/10                       | 1.077                                   |
+----------------------------+-----------------------------------------+
| 3/17                       | 1.137                                   |
+----------------------------+-----------------------------------------+
| 3/24                       | 1.174                                   |
+----------------------------+-----------------------------------------+
| 3/31                       | 1.121                                   |
+----------------------------+-----------------------------------------+
| 4/7                        | 1.158                                   |
+----------------------------+-----------------------------------------+
| 4/14                       | 1.186                                   |
+----------------------------+-----------------------------------------+
| 4/21                       | 1.182                                   |
+----------------------------+-----------------------------------------+
| 4/28                       | 1.141                                   |
+----------------------------+-----------------------------------------+
| 5/5                        | 1.117                                   |
+----------------------------+-----------------------------------------+
| 5/12                       | 1.089                                   |
+----------------------------+-----------------------------------------+
| 5/20                       | 1.040                                   |
+----------------------------+-----------------------------------------+

+----------------------------+-----------------------------------------+
| **2003 (continued)**       | 1.121                                   |
|                            |                                         |
| 5/28                       |                                         |
+----------------------------+-----------------------------------------+
| 6/2                        | 1.133                                   |
+----------------------------+-----------------------------------------+
| 6/9                        | 1.024                                   |
+----------------------------+-----------------------------------------+
| 6/16                       | 0.854                                   |
+----------------------------+-----------------------------------------+
| 6/23                       | 0.830                                   |
+----------------------------+-----------------------------------------+
| 6/30                       | 0.903                                   |
+----------------------------+-----------------------------------------+
| 7/7                        | 0.907                                   |
+----------------------------+-----------------------------------------+
| 7/14                       | 0.895                                   |
+----------------------------+-----------------------------------------+
| 7/21                       | 0.911                                   |
+----------------------------+-----------------------------------------+
| 7/28                       | 0.964                                   |
+----------------------------+-----------------------------------------+
| 8/4                        | 0.964                                   |
+----------------------------+-----------------------------------------+
| 8/11                       | 0.960                                   |
+----------------------------+-----------------------------------------+
| 8/18                       | 0.964                                   |
+----------------------------+-----------------------------------------+
| 8/25                       | 0.997                                   |
+----------------------------+-----------------------------------------+
| 9/2                        | 0.988                                   |
+----------------------------+-----------------------------------------+
| 9/8                        | 0.951                                   |
+----------------------------+-----------------------------------------+
| 9/15                       | 0.947                                   |
+----------------------------+-----------------------------------------+
| 9/22                       | 0.953                                   |
+----------------------------+-----------------------------------------+
| 9/29                       | 0.953                                   |
+----------------------------+-----------------------------------------+
| 10/6                       | 0.939                                   |
+----------------------------+-----------------------------------------+
| 10/14                      | 0.923                                   |
+----------------------------+-----------------------------------------+
| 10/20                      | 0.939                                   |
+----------------------------+-----------------------------------------+
| 10/27                      | 0.960                                   |
+----------------------------+-----------------------------------------+
| 11/3                       | 0.960                                   |
+----------------------------+-----------------------------------------+
| 11/10                      | .0951                                   |
+----------------------------+-----------------------------------------+
| 11/17                      | .0951                                   |
+----------------------------+-----------------------------------------+
| 11/24                      | 0.946                                   |
+----------------------------+-----------------------------------------+
| # TOTAL                    | 54.951                                  |
+----------------------------+-----------------------------------------+
| # AVERAGE: 1.06            |                                         |
+----------------------------+-----------------------------------------+