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Summary: PLUS/SLS Variable Interest Rate for 2004 - "91-day Treasury Bill" Method

Publication Date: December 17, 2003

Author: General Manager, FSA Financial Partners Services

Summary: PLUS/SLS Variable Interest Rate for 2004 - "91-day Treasury Bill" Method


Posted on 12-17-2003

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 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
12/2
1.231
12/9
1.215
12/16
1.219
12/23
1.207
12/30
1.207
2003
1/6
1.207
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)
5/28


1.121
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