Source: https://www.federalregister.gov/documents/2016/10/03/2016-23767/annual-notice-of-interest-rates-for-federal-student-loans-made-under-the-william-d-ford-federal
Timestamp: 2017-09-24 05:47:03
Document Index: 662344436

Matched Legal Cases: ['arts 1', 'art 2', 'art 3', 'art 4', 'art 5', 'art 5', 'art 5']

Federal Register :: Annual Notice of Interest Rates for Federal Student Loans Made Under the William D. Ford Federal Direct Loan Program Prior to July 1, 2013
Annual Notice of Interest Rates for Federal Student Loans Made Under the William D. Ford Federal Direct Loan Program Prior to July 1, 2013
A Notice by the Education Department on 10/03/2016
This notice is effective October 3, 2016.
81 FR 68003
68003-68005 (3 pages)
2016-23767
Variable-Rate Direct Loans
Fixed-Rate Direct Loans
https://www.federalregister.gov/d/2016-23767 https://www.federalregister.gov/d/2016-23767
In accordance with section 455(b)(10) of the Higher Education Act of 1965, as amended, (HEA), (20 U.S.C. 1087e(b)(10)) the Chief Operating Officer for Federal Student Aid announces the interest rates for loans made under the William D. Ford Federal Direct Loan (Direct Loan) Program prior to July 1, 2013. For loans that have a variable interest rate, the rates announced in this notice are in effect for the period July 1, 2016 through June 30, 2017. The Chief Operating Officer takes this action to give notice of Direct Loan interest rates to the public.
Rene Tiongquico, U.S. Department of Education, 830 First Street NE., 11th Floor, Washington, DC 20202. Telephone: (202) 377-4270 or by email: Rene.Tiongquico@ed.gov.
Section 455(b) of the Higher Education Act of 1965, as amended (HEA) (20 U.S.C. 1087e(b)), specifies the interest rates charged to borrowers for Federal Direct Subsidized Stafford/Ford Loans (Direct Subsidized Loans), Federal Direct Unsubsidized Stafford/Ford Loans (Direct Unsubsidized Loans), Federal Direct PLUS Loans (Direct PLUS Loans), and Federal Direct Consolidation Loans (Direct Consolidation Loans), collectively referred to as “Direct Loans.” The interest rates for Direct Loans may be variable or fixed.
Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct PLUS Loans that were first disbursed before July 1, 2006, and Direct Consolidation Loans for which the application was received before February 1, 1999, have variable interest rates that are determined each year in accordance with formulas specified in section 455(b) of the HEA. The variable interest rate formula that applies to a particular loan depends on the date of the first disbursement of the loan or, for some Direct Consolidation Loans, the date the application for the loan was received. The variable rates are determined annually and are effective for each 12-month period beginning July 1 of one year and ending June 30 of the following year.
Except for Direct PLUS Loans that were first disbursed before July 1, 1998, the variable interest rates for most types of Direct Loans are based on formulas that use the bond equivalent rates of the 91-day Treasury bills auctioned at the final auction held before June 1 of each year, plus a statutory add-on percentage. In each case, the calculated rate is capped by a maximum interest rate. The bond equivalent rate of the 91-day Treasury bills auctioned on May 31, 2016, which is used to calculate the interest rates on these loans, is 0.345, rounded up to 0.35 percent.
The interest rate for Direct PLUS Loans that were first disbursed on or after July 1, 1994, and before July 1, 1998, is based on the weekly average of the one-year constant maturity Treasury yield, as published by the Board of Governors of the Federal Reserve System on the last day of the calendar week ending on or before June 26 of each year, plus a statutory add-on percentage. The calculated rate is capped by a maximum interest rate. The weekly average of the one-year constant maturity Treasury yield published on June 27, 2016, which is used to calculate the interest rate on these loans, is 0.55 percent.
Charts 1 Through 4 in This Notice Show the Interest Rates for Variable-Rate Direct Loans That Are in Effect for the Period July 1, 2016 Through June 30, 2017
91-Day T-Bill rate (%)
In-school, grace, deferment
All other periods (%)
In-school, grace, deferment (%)
7/1/1994 7/1/1995 8.25 0.35 3.10 3.10 3.45 3.45
7/1/1995 7/1/1998 8.25 0.35 2.50 3.10 2.85 3.45
7/1/1998 7/1/2006 8.25 0.35 1.70 2.30 2.05 2.65
Chart 2—Variable-Rate Direct PLUS Loans Interest Rates in Effect for the Period 7/1/2016 Through 6/30/2017
1-Year constant treasury maturity (%)
7/1/1994 7/1/1998 9.00 0.55 3.10 3.65
7/1/1998 7/1/2006 9.00 0.35 3.10 3.45
Chart 3—Variable-Rate Direct Subsidized and Direct Unsubsidized Consolidation Loans Interest Rates in Effect for the Period 7/1/2016 Through 6/30/2017
Maxmum rate (%)
7/1/1998 10/1/1998 8.25 0.35 1.70 2.30 2.05 2.65
First disbursed on or after Application received before
10/1/1998 10/1/1998 8.25 0.35 1.70 2.30 2.05 2.65%
Application received on or after Application received before
10/1/1998 2/1/1999 8.25 0.35 2.30 2.30 2.65 2.65
Chart 4—Variable-Rate Direct PLUS Consolidation Loans Interest Rates in Effect for the Period 7/1/2016 Through 6/30/2017
In-school, race, deferment (%)
7/1/1994 7/1/1998 9.00 0.55 3.10 3.10 3.65 3.65
7/1/1998 10/1/1998 9.00 0.35 3.10 3.10 3.45 3.45
10/1/1998 10/1/1998 9.00 0.35 3.10 3.10 3.45 3.45
Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct PLUS Loans first disbursed on or after July 1, 2006 and before July 1, 2013, and Direct Consolidation Loans for which the application was received on or after February 1, 1999, have fixed interest rates.
Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct PLUS Loans first disbursed on or after July 1, 2006 and before July 1, 2013 have various fixed interest rates that are specified in section 455(b)(7) of the HEA. These fixed rates are shown in Chart 5.
Direct Consolidation Loans for which the application was received on or after February 1, 1999 and before July 1, 2013 have a fixed interest rate that is determined in accordance with sections 455(b)(6)(D) and 455(b)(7)(C) of the HEA. The fixed interest rate for these Direct Consolidation Loans is equal to the weighted average of the loans that are consolidated, rounded up to the nearest higher 1/8 of one percent, but the rate may not exceed 8.25 percent.
Chart 5 shows the fixed interest rates for Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct PLUS Loans first disbursed before July 1, 2013, and for Direct Consolidation Loans for which the application was received on or after February 1, 1999 and before July 1, 2013.
Chart 5—Fixed-Rate Direct Subsidized, Direct Unsubsidized, Direct PLUS Loans, and Direct Consolidation Loans First Disbursed On or After 7/1/2006 and Before 7/1/2013
Subsidized Undergraduates 7/1/2006 7/1/2008 6.80
Subsidized Undergraduates 7/1/2008 7/1/2009 6.00
Subsidized Undergraduates 7/1/2009 7/1/2010 5.60
Subsidized Undergraduates 7/1/2010 7/1/2011 4.50
Subsidized Undergraduates 7/1/2011 7/1/2013 3.40
Unsubsidized All 7/1/2006 7/1/2013 6.80
PLUS Parents and Graduate/Professionals 7/1/2006 7/1/2013 7.90
Consolidation N/A 2/1/1999 7/1/2013 Weighted average of rates on the loans being consolidated, rounded to nearest higher 1/8 of 1 percent, not to exceed 8.25%
7/1/2013 Weighted average of rates on the loans being consolidated, rounded to nearest higher 1/8 of 1 percent
Interest rates for Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct PLUS Loans first disbursed on or after July 1, 2013 and before July 1, 2016 are published in earlier Federal Register notices, as follows:
For loans first disbursed on or after July 1, 2013, and prior to July 1, 2014, see 78 FR 59011.
For loans first disbursed on or after July 1, 2014, and prior to July 1, 2015, see 79 FR 37301.
For loans first disbursed on or after July 1, 2015, and prior to July 1, 2016, see 80 FR 42488.
For loans first disbursed on or after July 1, 2016, and prior to July 1, 2017, see 81 FR 38159.
[FR Doc. 2016-23767 Filed 9-30-16; 8:45 am]