Period Begin: January 1, 2008
Period End: December 31, 2008
Posted on 12-04-2007
Due to the wording of the promissory notes, some loans are subject to a calendar-year adjustment of the variable interest rate, based on the "91-day Treasury Bill" method that existed in statute [section 427A(c)(4)] prior to enactment of the Higher Education Technical Amendments Act of 1987 (Pub. L. 100-50). The rate is equal to the "average of the 91-day Treasury Bills auctioned during the 12-month period ending November 30" plus 3.75 percent, not to exceed 12 percent.
Accordingly, we have determined that the variable interest rate for calendar year 2008 is 8.42 percent [4.67% (the 91-day T-bill average) + 3.75%].
Please note that this rate applies only to PLUS/SLS promissory notes that provide for a calendar year adjustment based on the "91-day Treasury Bill" method.