The Assistant Secretary for Postsecondary Education announces the interest rates for variable rate loans made under the William D. Ford Federal Direct Loan (Direct Loan) Program for the period July 1, 1995, through June 30, 1996.

[Federal Register: June 27, 1995 (Volume 60, Number 123)]

[Notices]               

[Page 33191]

From the Federal Register Online via GPO Access [wais.access.gpo.gov]

[DOCID:fr27jn95-53]



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DEPARTMENT OF EDUCATION



Office of Postsecondary Education; William D. Ford Federal Direct 

Loan Program


AGENCY: Department of Education.


ACTION: Notice of interest rates for the William D. Ford Federal Direct 

Loan Program for the period July 1, 1995, through June 30, 1996.


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SUMMARY: The Assistant Secretary for Postsecondary Education announces 

the interest rates for variable rate loans made under the William D. 

Ford Federal Direct Loan (Direct Loan) Program for the period July 1, 

1995, through June 30, 1996.


FOR FURTHER INFORMATION CONTACT: Barbara F. Grayson, Program 

Specialist, William D. Ford Federal Direct Loan Program, Division of 

Policy and Program Development, Office of Postsecondary Education, U.S. 

Department of Education, Room 3045, ROB-3, 600 Independence Avenue, SW, 

Washington, DC 20202-5400. Telephone: (202)708-6876. Individuals who 

use a telecommunications device for the deaf (TDD) may call the Federal 

Information Relay Service (FIRS) at 1-800-877-8339 between 8 a.m. and 8 

p.m., Eastern time, Monday through Friday.


SUPPLEMENTARY INFORMATION: The formulas for determining the interest 

rates for Direct Loan Program Loans are provided under section 455 of 

the Higher Education Act of 1965, as amended (the Act) (20 U.S.C. 

1087e), and in Secs. 685.202 (a) and 685.215(g) of the final 

regulations published in the Federal Register on December 1, 1994 (59 

FR 61693 and 61704, respectively). Section 455(b) of the Act provides 

that a variable interest rate applies to loans made under the Direct 

Loan Program and disbursed on or after July 1, 1994. The variable rate 

applies for each 12-month period beginning July 1 and ending June 30. 

For Federal Direct Stafford/Ford (Direct Subsidized) and Federal Direct 

Unsubsidized Stafford/Ford (Direct Unsubsidized) Loans, and Federal 

Direct Subsidized and Federal Direct Unsubsidized Consolidation Loans, 

the interest rate may not exceed 8.25 percent. For Federal Direct PLUS 

and Federal Direct PLUS Consolidation Loans the interest rate may not 

exceed 9.00 percent.


Interest Rates for Direct Subsidized, Direct Unsubsidized, Direct 

Subsidized Consolidation, and Direct Unsubsidized Consolidation Loans


    Loans first disbursed prior to July 1, 1995. Pursuant to section 

455(b)(1) of the Act, the Assistant Secretary has determined the 

interest rate for the period July 1, 1995, through June 30, 1996, to be 

8.25 percent.

    Loans first disbursed on or after July 1, 1995. (a) During the in-

school, grace, and deferment periods. Pursuant to section 455(b)(2) of 

the Act, the Assistant Secretary has determined the interest rate for 

the period July 1, 1995, through June 30, 1996, to be 8.25 percent.

    (b) During all other periods. Pursuant to section 455(b)(1) of the 

Act, the Assistant Secretary has determined the interest rate for the 

period July 1, 1995, through June 30, 1996, to be 8.25 percent.


Interest Rates for Direct PLUS and Direct PLUS Consolidation Loans


    Pursuant to section 455(b)(4) of the Act, the Assistant Secretary 

has determined the interest rate for the period July 1, 1995, through 

June 30, 1996, to be 8.98 percent.


(20 U.S.C. 1087e)


    Dated: June 21, 1995.

David A. Longanecker,

Assistant Secretary for Postsecondary Education.

[FR Doc. 95-15627 Filed 6-26-95; 8:45 am]

BILLING CODE 4000-01-P