Quarter: March 31, 2012
Posted Date:April 4, 2012
Subject: Federal Family Education Loan Program Special Allowance Rates for the Quarter Ending March 31, 2012
Commercial Paper Rate
In calculating quarterly Special Allowance rates, the Department is required, under section 438(b)(2)(I)(i)(I) of the Higher Education Act (HEA), to determine “the average of the bond equivalent rates of the quotes of the 3-month commercial paper (financial) rates in effect for each of the days in such quarter as reported by the Federal Reserve in Publication H-15 (or its successor) for such 3-month period.” For the quarter ending March 31, 2012 the average rate used to compute special allowance will be 0.24 percent.
Treasury Bill Rate
For loans made prior to January 1, 2000, pursuant to section 438, the Special Allowance rate is calculated by using the average of the bond equivalent rates of the ninety-one day Treasury bills as published by the Department of the Treasury. For the quarter ending March 31, 2012, the average of the rates is 0.07 percent.
Attachments A, B & C contain the quarterly special allowance rates computed pursuant to section 438. Attachment D contains the bond equivalent rates of the 91-day Treasury Bills auctioned during the quarter.Accounting Division