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Subject: Annual notice of variable interest rates on FFELP Loans made prior to July 1, 2010

Publication Date: August 29, 2013

Posted Date: August 29, 2013

Subject: Annual notice of variable interest rates on FFELP Loans made prior to July 1, 2010

FR Type: Notice

[Federal Register Volume 78, Number 168 (Thursday, August 29, 2013)]
[Notices]
[Pages 53433-53436]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-21142]

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DEPARTMENT OF EDUCATION

[Catalog of Federal Domestic Assistance (CFDA) Number: 84.032]

Annual Notice of Interest Rates of Federal Student Loans Made
Under the Federal Family Education Loan Program Prior to July 1, 2010

AGENCY: Federal Student Aid, Department of Education.

ACTION: Notice.

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SUMMARY: In accordance with section 427A of the Higher Education Act of
1965, as amended, the Chief Operating Officer for Federal Student Aid
announces the interest rates for the period July 1, 2013, through June
30, 2014, for certain loans made under the Federal Family Education
Loan (FFEL) Program prior to July 1, 2010. The Chief Operating Officer takes this action to give notice of FFEL Program loan interest rates to the
public.

DATES: This notice is effective August 29, 2013.

FOR FURTHER INFORMATION CONTACT: Ian Foss, U.S. Department of
Education, 830 First Street NE., Room 114I1, Washington, DC 20202.
Telephone: (202) 377-3681 or by email: ian.foss@ed.gov.
    If you use a telecommunications device for the deaf (TDD) or a text
telephone (TTY), call the Federal Relay Service (FRS), toll free, at 1-
800-877-8339.
    Individuals with disabilities can obtain this document in an
accessible format (e.g., braille, large print, audiotape, or compact
disc) on request to the contact person listed under FOR FURTHER
INFORMATION CONTACT.

SUPPLEMENTARY INFORMATION: Section 427A of the Higher Education Act of
1965, as amended (HEA) (20 U.S.C. 1077a), provides formulas for
determining the interest rates charged to borrowers on loans made under
the Federal Family Education Loan (FFEL) Program, including Federal
Subsidized and Unsubsidized Stafford Loans, Federal PLUS Loans, and
Federal Consolidation Loans.
    The FFEL Program includes loans with variable interest rates and
loans with fixed interest rates. Most loans made under the FFEL Program
before July 1, 2006, have variable interest rates that change each
year. In most cases, the variable interest rate formula that applies to
a particular loan usually depends on the date of the first disbursement
of the loan. The variable rates are determined annually and are
effective for each 12-month period beginning July 1 of one year and
ending June 30 of the following year.
    Under section 427A(k) of the HEA, FFEL Program loans first
disbursed on or after July 1, 2006, have a fixed interest rate.
    In the case of some Federal Consolidation Loans, the interest rate
is determined by the date on which the Federal Consolidation Loan
application was received. Federal Consolidation Loans for which the
application was received on or after October 1, 1998, have a fixed
interest rate. This fixed rate is based on the weighted average of the
loans that are consolidated, rounded up to the nearest higher 1/8 of
one percent up to a maximum rate of 8.25 percent.
    FFEL variable interest rates are based on formulas that use the
bond equivalent rate of the 91-day Treasury bills auctioned at the
final auction held before June 1 of each year plus a statutorily
established add-on. These formulas apply to: All Federal Subsidized and
Unsubsidized Stafford Loans first disbursed before October 1, 1992,
that have been converted to variable rate loans; all Federal Subsidized
and Unsubsidized Stafford Loans first disbursed on or after October 1,
1992, and before July 1, 2006; Federal PLUS Loans first disbursed on or
after July 1, 1998, and before July 1, 2006; and Federal Consolidation
Loans for which the Federal Consolidation Loan application was received
on or after November 13, 1997, and before October 1, 1998. In each
case, the calculated rate is capped by a maximum interest rate. The
bond equivalent rate of the 91-day Treasury bills auctioned on May 28,
2013, which is used to calculate the interest rates on these loans, is
0.046 percent, which is rounded to 0.05 percent.
    For Federal PLUS loans first disbursed before July 1, 1998, the
interest rate is based on the weekly average of the one-year constant
maturity Treasury yield, as published by the Board of Governors of the
Federal Reserve System on the last day of the calendar week ending on
or before June 26 of each year, plus a statutory add-on percentage. The
calculated rate is capped by a maximum interest rate. The weekly
average of the one-year constant maturity Treasury yield published on
June 21, 2013, which is used to calculate the interest rate on these
loans, is 0.13 percent.
    This notice includes five charts containing specific information on
the calculation of interest rates for loans made under the FFEL
Program:
    Chart 1 contains information on the interest rates for Federal
Subsidized and Unsubsidized Stafford Loans that were made as fixed-rate
loans, but were subsequently converted to variable-rate loans.
    Chart 2 contains information on the interest rates for variable-
rate Federal Subsidized and Unsubsidized Stafford Loans.
    Chart 3 contains information on the interest rates for variable-
rate Federal PLUS Loans.
    Chart 4 contains information on the interest rates for fixed-rate
Federal Consolidation Loans.
    Chart 5 contains information on the interest rates for fixed-rate
Federal Subsidized and Unsubsidized Stafford and PLUS Loans.

*NOTE: CHART OMITTED -- SEE PDF FILE

    Note: No new loans have been made under the FFEL Program since
June 30, 2010.

    Electronic Access to This Document: The official version of this
document is the document published in the Federal Register. Free
Internet access to the official edition of the Federal Register and the
Code of Federal Regulations is available via the Federal Digital System
at: www.gpo.gov/fdsys. At this site you can view this document, as well
as all other documents of this Department published in the Federal
Register, in text or Adobe Portable Document Format (PDF). To use PDF
you must have Adobe Acrobat Reader, which is available free at the
site.
    You may also access documents of the Department published in the
Federal Register by using the article search feature at:
www.federalregister.gov. Specifically, through the advanced search
feature at this site, you can limit your search to documents published
by the Department.

    Program Authority: 20 U.S.C. 1071 et seq.

    Dated: August 26, 2013.
James F. Manning,
Chief of Staff of Federal Student Aid, delegated the authority to
perform the functions and duties of the Chief Operating Officer of
Federal Student Aid.
[FR Doc. 2013-21142 Filed 8-28-13; 8:45 am]
BILLING CODE 4000-01-P


Last Modified: 08/28/2013