Posted Date:July 8, 2009
Author: William Leith, Service Director, Program Management, Federal Student Aid
Subject: Interest Rates for Direct Loan Program Loans
The attachment to this announcement provides the current interest rates for both fixed rate and variable rate William D. Ford Federal Direct Loan (Direct Loan) Program loans. For variable rate loans, the rates shown are those that will be in effect from July 1, 2009 through June 30, 2010.
All Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct PLUS Loans with a first disbursement date on or after July 1, 2006, and all Direct Consolidation Loans for which the application was received on or after February 1, 1999 have a fixed interest rate.
Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct PLUS Loans with a first disbursement date before July 1, 2006, and Direct Consolidation Loans for which the application was received before February 1, 1999 have a variable interest rate. For variable rate loans, the charts in the attachment show both the current interest rates and how the rates were determined using either the 91-day Treasury bill rate or the weekly average of a 1-year constant maturity Treasury yield, as published by the Board of Governors of the Federal Reserve System, and the appropriate add-on percentages.
The interest rates are determined in accordance with Section 455(b) of the Higher Education Act of 1965, as amended (HEA). You can find the regulations for Direct Loan Program interest rates at 34 CFR 685.202(a).
If you have questions about this announcement, contact the COD School Relations Center at 800/848-0978. You may also e-mail CODSupport@acs-inc.com.