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: