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Summary: PLUS/SLS Variable Interest Rate for 2005 - "91-day Treasury Bill" Method

Publication Date: December 13, 2004

Author: General Manager, FSA Financial Partners Services

Summary: PLUS/SLS Variable Interest Rate for 2005 - "91-day Treasury Bill" Method


Posted on 12-13-2004

December 10, 2004

Subject: PLUS/SLS Variable Interest Rate for 2005 - "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 2005 is 5.05 percent [1.30% (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
2003
12/1
0.943
12/8
0.915
12/15
0.903
12/22
0.884
12/29
0.901
2004
1/5
0.939
1/12
0.887
1/20
0.891
1/26
0.907
2/2
0.939
2/9
0.939
2/17
0.931
2/23
0.947
3/1
0.957
3/8
0.945
3/15
0.961
3/22
0.945
3/29
0.961
4/5
0.945
4/12
0.929
4/19
0.949
4/26
0.985
5/3
1.001
5/10
1.078
5/17
1.058

2004 (continued)
5/24


1.066
6/1
1.150
6/7
1.251
6/14
1.413
6/21
1.336
6/28
1.381
7/6
1.344
7/12
1.336
7/19
1.352
7/26
1.449
8/2
1.490
8/9
1.497
8/16
1.498
8/23
1.541
8/30
1.607
9/7
1.663
9/13
1.671
9/20
1.716
9/27
1.741
10/4
1.716
10/12
1.711
10/18
1.803
10/25
1.890
11/1
1.987
11/8
2.084
11/15
2.115
11/22
2.197
11/30
2.238
TOTAL
68.883
AVERAGE: 1.30

Attachments/Enclosures: