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 |