[Federal Register Volume 88, Number 226 (Monday, November 27, 2023)]
[Notices]
[Pages 82858-82860]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-26053]


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DEPARTMENT OF EDUCATION


Annual Notice of Interest Rates for Variable-Rate Federal Student 
Loans Made Under the William D. Ford Federal Direct Loan Program

AGENCY: Federal Student Aid, Department of Education.

ACTION: Notice.

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SUMMARY: The Chief Operating Officer for Federal Student Aid announces 
the interest rates for Federal Direct Stafford/Ford Loans (Direct 
Subsidized Loans), Federal Direct Unsubsidized Stafford/Ford Loans 
(Direct Unsubsidized Loans), and Federal Direct PLUS Loans (Direct PLUS 
Loan), Assistance Listing Number 84.268, with first disbursement dates 
before July 1, 2006, and for Federal Direct Consolidation Loans (Direct 
Consolidation Loans) for which the application was received before 
February 1, 1999. The rates announced in this notice are in effect for 
the period July 1, 2023, through June 30, 2024.

FOR FURTHER INFORMATION CONTACT: Travis Sturlaugson, U.S. Department of 
Education, 830 First Street NE, Washington, DC 20202. Telephone: 202-
377-4174 or by email: <a href="/cdn-cgi/l/email-protection#d4a0a6b5a2bda7faa7a0a1a6b8b5a1b3a7bbba94b1b0fab3bba2"><span class="__cf_email__" data-cfemail="9eeaecffe8f7edb0edeaebecf2ffebf9edf1f0defbfab0f9f1e8">[email protected]</span></a>.
    If you are deaf, hard of hearing, or have a speech disability and 
wish to access telecommunications relay services, please dial 7-1-1.

SUPPLEMENTARY INFORMATION: Direct Subsidized Loans, Direct Unsubsidized 
Loans, Direct PLUS Loans, and Direct Consolidation Loans (collectively 
referred to as ``Direct Loans'') may have either fixed or variable 
interest rates, depending on when the loan was first disbursed or, in 
the case of a Direct Consolidation Loan, when the application for the 
loan was received. Direct Subsidized Loans, Direct Unsubsidized Loans, 
and Direct PLUS Loans first disbursed before July 1, 2006, and Direct 
Consolidation Loans for which the application was received before 
February 1, 1999, have variable interest rates. For these loans, a new 
rate is determined annually and is in effect during the period from 
July 1 of one year through June 30 of the following year.
    Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct PLUS 
Loans first disbursed on or after July 1, 2006, and Direct 
Consolidation Loans for which the application was received on or after 
February 1, 1999, have fixed interest rates that apply for the life of 
the loan.
    This notice announces the interest rates for variable-rate Direct 
Loans that will apply during the period from July 1, 2023, through June 
30, 2024. Interest rate information for fixed-rate Direct Loans is 
announced in a separate notice published in the Federal Register.
    Interest rates for variable-rate Direct Loans are determined in 
accordance with formulas specified in section 455(b) of the Higher 
Education Act of 1965, as amended (HEA) (20 U.S.C. 1087e(b)). The 
formulas vary depending on loan type and when the loan was first 
disbursed or, for certain Direct Consolidation Loans, when the 
application for the loan was received. The HEA specifies a maximum 
interest rate for these loan types. If the interest rate formula 
results in a rate that exceeds the statutory maximum rate, the rate is 
the statutory maximum rate.

[[Page 82859]]

Variable-Rate Direct Subsidized Loans, Direct Unsubsidized Loans, and 
Direct PLUS Loans

    For Direct Subsidized Loans and Direct Unsubsidized Loans with 
first disbursement dates before July 1, 2006, and for Direct PLUS Loans 
with first disbursement dates on or after July 1, 1998, and before July 
1, 2006, the interest rate is equal to the lesser of--
    (1) The bond equivalent rate of 91-day Treasury bills auctioned at 
the final auction held before the June 1 immediately preceding the 12-
month period to which the interest rate applies, plus a statutory add-
on percentage; or
    (2) 8.25 percent (for Direct Subsidized Loans and Direct 
Unsubsidized Loans) or 9.00 percent (for Direct PLUS Loans).
    For Direct Subsidized Loans and Direct Unsubsidized Loans with 
first disbursement dates on or after July 1, 1995, and before July 1, 
2006, the statutory add-on percentage varies depending on whether the 
loan is in an in-school, grace, or deferment status, or in any other 
status. For all other loans, the statutory add-on percentage is the 
same during any status.
    The bond equivalent rate of 91-day Treasury bills auctioned on May 
30, 2023, is 5.462 percent, rounded to 5.46 percent.
    For Direct PLUS Loans with first disbursement dates before July 1, 
1998, the interest rate is equal to the lesser of--
    (1) The weekly average 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 the June 26 preceding the 
12-month period to which the interest rate applies, plus a statutory 
add-on percentage; or
    (2) 9.00 percent.
    The weekly average of the one-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, 2023, 
is 5.26 percent.

Variable-Rate Direct Consolidation Loans

    A Direct Consolidation Loan may have up to three components, 
depending on the types of loans that were repaid by the consolidation 
loan and when the application for the consolidation loan was received. 
The three components are called Direct Subsidized Consolidation Loans, 
Direct Unsubsidized Consolidation Loans, and (only for Direct 
Consolidation Loans made based on applications received before July 1, 
2006) Direct PLUS Consolidation Loans. In most cases the interest rates 
for variable-rate Direct Subsidized Consolidation Loans, Direct 
Unsubsidized Consolidation Loans, and Direct PLUS Consolidation Loans 
are determined in accordance with the same formulas that apply to 
Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct PLUS 
Loans, respectively.

Interest Rate Charts

    Charts 1 and 2 show the interest rate formulas used to determine 
the interest rates for all variable-rate Direct Loans and the rates 
that are in effect during the 12-month period from July 1, 2023, 
through June 30, 2024.
    Chart 1 shows the interest rates for loans with rates based on the 
91-day Treasury bill rate. Chart 2 shows the interest rates for loans 
with rates based on the weekly average of the one-year constant 
maturity Treasury yield.

Chart 1--Direct Subsidized Loans, Direct Unsubsidized Loans, Direct Subsidized Consolidation Loans, Direct Unsubsidized Consolidation Loans, Direct Plus
                                                       Loans, and Direct Plus Consolidation Loans
                                                     [Interest rates based on 91-day treasury bill]
--------------------------------------------------------------------------------------------------------------------------------------------------------
 
--------------------------------------------------------------------------------------------------------------------------------------------------------
Loan type                       Cohort..........   91-day T-bill              Add-on (%)                Maximum rate  Interest rate 07/01/23 through 06/
                                                   rate 05/30/23                                                 (%)               30/24 (%)
                                                             (%)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Subsidized, Unsubsidized......  First disbursed             5.46  1.70 (in-school,  2.30 (any other             8.25  7.16 (in-school,  7.76 (any other
                                 on/after 07/01/                   grace,            status).                          grace,            status).
                                 98 and before                     deferment).                                         deferment).
                                 07/01/06.
Subsidized Consolidation,       First disbursed
 Unsubsidized Consolidation.     on/after 07/01/
                                 98 and before
                                 10/01/98; or
                                 Application
                                 received before
                                 10/01/98 and
                                 first disbursed
                                 on/after 10/01/
                                 98.
PLUS..........................  First disbursed             5.46                 3.10                           9.00                 8.56.
                                 on/after 07/01/
                                 98 and before
                                 07/01/06.
PLUS Consolidation............  First disbursed
                                 on/after 07/01/
                                 1998 and before
                                 10/01/1998; or
                                 Application
                                 received before
                                 10/01/98 and
                                 first disbursed
                                 on/after 10/01/
                                 98.
Subsidized, Unsubsidized,       First disbursed             5.46  2.50 (in-school,  3.10 (any other             8.25  7.96 (in-school,  8.25 (any other
 Subsidized Consolidation,       on/after 07/01/                   grace,            status).                          grace,            status).
 Unsubsidized Consolidation.     95 and before                     deferment).                                         deferment).
                                 07/01/98.

[[Page 82860]]

 
Subsidized, Unsubsidized,       First disbursed             5.46                 3.10                           8.25                 8.25.
 Subsidized Consolidation,       before 07/01/95.
 Unsubsidized Consolidation.
Subsidized Consolidation,       Application                 5.46                 2.30                           8.25                 7.76
 Unsubsidized Consolidation,     received on/
 PLUS Consolidation.             after 10/01/98
                                 and before 02/
                                 01/99.
--------------------------------------------------------------------------------------------------------------------------------------------------------


                                             Chart 2--Direct Plus Loans and Direct Plus Consolidation Loans
                                  [Interest rates based on weekly average of one-year constant maturity treasury yield]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                    Weekly average of 1-
                                                                                        year constant
                                                                                      maturity treasury                                    Interest rate
                   Loan type                                   Cohort                  yield for last       Add-on (%)     Maximum rate      07/01/23
                                                                                    calendar week ending                        (%)       through 06/30/
                                                                                     on or before 06/26/                                      24 (%)
                                                                                           23 (%)
--------------------------------------------------------------------------------------------------------------------------------------------------------
PLUS, PLUS Consolidation.......................  First disbursed before 07/01/98..                  5.26            3.10            9.00            8.36
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Accessible Format: On request to the program contact person listed 
under FOR FURTHER INFORMATION CONTACT, individuals with disabilities 
can obtain this document in an accessible format. The Department will 
provide the requestor with an accessible format that may include Rich 
Text Format (RTF) or text format (txt), a thumb drive, an MP3 file, 
braille, large print, audiotape, or compact disc, or other accessible 
format.
    Electronic Access to This Document: The official version of this 
document is the document published in the Federal Register. You may 
access the official edition of the Federal Register and the Code of 
Federal Regulations at www.govinfo.gov. At this site you can view this 
document, as well as all other documents of this Department published 
in the Federal Register, in text or Portable Document Format (PDF). To 
use PDF you must have Adobe Acrobat Reader, which is available free at 
the site.
    You may also access documents of the Department published in the 
Federal Register by using the article search feature at 
www.federalregister.gov. Specifically, through the advanced search 
feature at this site, you can limit your search to documents published 
by the Department.
    Program Authority: 20 U.S.C. 1087 et seq.

Richard Cordray,
Chief Operating Officer Federal Student Aid.
[FR Doc. 2023-26053 Filed 11-24-23; 8:45 am]
BILLING CODE 4000-01-P


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