Bulletin ID
DLB - 00 - 34
| PublicationDate: 6/1/2000 BulletinID: DLB - 00 - 34 June 2000 DLB 00-34 Subject: Interest rates for Direct Loan Program loans for the period July 1, 2000, through June 30, 2001 Dear Partner: This bulletin discusses the new interest rates, which will be in effect for the Direct Loan Program from July 1, 2000, through June 30, 2001. Attached is a set of charts entitled New Interest Rates that show the new interest rates for Direct Subsidized Loans and Direct Unsubsidized Loans, Direct PLUS Loans, and Direct Consolidation Loans. The charts also show how the new interest rates were determined using the Treasury bill rates and the add-on percentages. The interest rates are based on the interest rate formulas given by statutory and regulatory authority. The interest rate formulas for all student and parent loans and for consolidation loans for which the application was received on or after October 1, 1998, are defined in Section 455(b) of the Higher Education Act of 1965, as amended (the HEA). Amendments to the HEA were enacted in 1998 under both the Temporary Student Loan Provision, Section 8301 of the Transportation Equity Act for the 21st Century, and the Higher Education Amendments of 1998. You can find the regulations for interest rate formulas for student, parent, and consolidation loans at 34 CFR 685.202(a), as published in 64 FR 46254. The interest rate on all parent loans first disbursed before July 1, 1998 is the bond equivalent rate of 52-week Treasury bills sold at the final auction prior to June 1 plus an add on percentage. The rate for 52-week Treasury bills auctioned on May 31, 2000, was 6.375 percent, which rounds to 6.38 percent. The interest rates that are effective for the period July 1, 2000 through June 30, 2001 are shown in the attached charts. The interest rates on all student loans, and on parent loans first disbursed on or after July 1, 1998, are the bond equivalent rate of 91-day Treasury bills sold at the final auction before June 1 plus an add on percentage. The rate for 91-day Treasury bills auctioned on May 30, 2000 was 5.893 percent, which rounds to 5.89 percent. The interest rates that are effective for the period July 1, 2000 through June 30, 2001 are shown in the attached charts. Thank you for your continued partnership in the Direct Loan program. Sincerely, Margaret E. White Acting Lead, Title IV Delivery Schools Channel Attachment Direct Loan Program's Interest Rates from July 1, 2000 to June 30, 2001 File Size: 26KB; Number of Pages: 4 Requires 4.0 or greater of the free Adobe Acrobat Reader software. |