| PeriodBegin: 7/1/99 PeriodEnd: 6/30/2000 June 9, 1999 To: FFEL Program Section Staff Regional Office Staff From: Chief, FFEL Program Section Division of Policy Development Policy, Training, and Analysis Service Subject: Corrected Federal Stafford, Federal PLUS, Federal SLS, and Federal Consolidation Interest Rate Calculations for the Period July 1, 1999 June 30, 2000 This memo corrects the interest rate memo that was distributed on June 4, 1999. The prior memo contained an error in the interest rate formula for Consolidation Loans made before July 1, 1994. The attached charts show the variable interest rates applicable to the Federal Stafford, Federal SLS, Federal PLUS, and Federal Consolidation loan programs for the period July 1, 1999 June 30, 2000. Interest rates for variable-rate loans under these programs are determined annually, and are based on the bond equivalent rate of either 91-day Treasury Bills or 52-week Treasury Bills auctioned on the final auction held before June 1st of each year. The bond equivalent rate for 91-day Treasury Bills auctioned on May 24th, 1999, is 4.621 percent, which rounds to 4.62 percent. The bond equivalent rate for 52-week Treasury Bills auctioned on May 25, 1999, is 4.879 percent, which rounds to 4.88 percent. [signed] Patricia Newcombe Attachment [[This file contains the "Federal Stafford, Federal PLUS, Federal SLS, and Federal Consolidation Interest Rate Calculations for the Period July 1, 1999 - June 30, 2000" in Portable Document Format (PDF). It can be viewed with version 3.0 or greater of the free Adobe Acrobat Reader software.]] |