Publication Date: July 2001
Bulletin ID: DLB-01-20
Interest rates for Direct Loan PLUS Loans that were disbursed before July 1, 1998
July 2001
DLB-01-20
Subject: Interest rates for Direct Loan PLUS Loans that were disbursed before July 1, 1998
Dear Partner:
This bulletin discusses the new interest rates for Direct PLUS Loans and Direct PLUS
Consolidation Loans that were disbursed before July 1, 1998.The new rates are in effect for the Direct Loan Program from July 1, 2001 through June 30, 2002 and are based on the interest rate formulas given by statutory authority. The interest rate formulas for these parent loans and for consolidation loans that were disbursed before July 1, 1998 are defined in Section 455(b) of the Higher Education Act of 1965, as amended by the Consolidated Appropriations Act of 2001.
On June 22, the weekly average of the 1-year constant maturity Treasury yield was 3.46 percent. The charts that follow show the interest rates that are effective for all Direct PLUS Loans for the period July 1, 2001 through June 30, 2002. The charts also show how the new interest rates were derived using the weekly average of a 1-year constant maturity Treasury yield, as published by the Board of Governors of the Federal Reserve System, for the last calendar week ending on or before June 26 and the appropriate add-on percentage (3.1 percent).
Thank you for your continued partnership in the Direct Loan Program.
Sincerely,Jane Holman
Acting Director, Title IV Delivery
Schools Channel