Bulletin ID
DLB - 95 - 13
| PublicationDate: 7/1/95 BulletinID: DLB - 95 - 13 Dear Colleague: The variable interest rate for Direct Loan Program loans changed on July 1, 1995. Attached is a copy of the announcement of the new interest rates for the period July 1, 1995 through June 30, 1996 that was published in the Federal Register on June 27, 1995 (60 FR 33191). The interest rate for all Direct Loan Program student loans is 8.25 percent. The interest rate for all Direct Subsidized, Direct Unsubsidized, Direct Subsidized Consolidation, and Direct Unsubsidized Consolidation Loans is based on the bond equivalent rate of 91-day Treasury bills auctioned at the final auction held prior to June 1, not to exceed 8.25 percent. The rate for 91-day Treasury bills auctioned May 30, 1995 was 5.82 percent. For this year, interest rates calculated for all student loans for all periods would have been greater than 8.25 percent and were capped at the maximum. The interest rate for all Direct Loan Program parent loans is 8.98 percent. The interest rate for all Direct PLUS and Direct PLUS Consolidation Loans is based on the bond equivalent rate of 52-week Treasury bills auctioned at the final auction held prior to June 1, not to exceed 9 percent. The rate for 52-week Treasury bills auctioned May 25, 1995 was 5.88 percent. The PLUS interest rate was calculated as 8.98 percent, just below the 9 percent cap. The formulas for calculating the interest rates are given in §685.202(a) and §685.215 (g) of the final regulations published in the Federal Register on December 1, 1994 (59 FR 61693 and 61704, respectively). If you have any questions, please call the Direct Loan Task Force at (202) 708-9951. Sincerely, Diane Voigt, Chair Direct Loan Task Force |