The Department of Education is required under section 438 of the Higher Education Act to calculate and issue the quarterly Special Allowance Rates for three categories listed below.
COMMERCIAL PAPER RATE
The Commercial Paper Rate is “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 June 30, 2021, the average rate used to compute special allowance will be 0.10%.
LIBOR RATE
The LIBOR rate is “the average of the bond equivalent rates of the quotes of the 1-month London InterBank Offered Rate (LIBOR) in effect for each of the days in such quarter as compiled and released by the British Bankers Association.” For the quarter ending June 30, 2021, the average rate used to compute special allowance will be 0.10%.
TREASURY BILL RATE
The Treasury Bill rate is “the average of the bond equivalent rates of the 13-week Treasury bills as published by the Department of the Treasury.” For the quarter ending June 30, 2021, the average of the rates is 0.02%.
Attachments
Attachments A, B, C and D contain the quarterly special allowance rates computed pursuant to section 438.
Accounting Operations Division
Finance Directorate