Publication Date: July 2002
Bulletin ID: DLB-02-22
Summary: Interest Rates on Direct PLUS Loans and Direct PLUS Consolidation Loans Disbursed before July 1, 1998
July 2002
DLB-02-22
Subject: Interest Rates on Direct PLUS Loans and Direct PLUS Consolidation Loans Disbursed before July 1, 1998
Dear Partner,
This bulletin provides new the interest rates for Direct PLUS Loans and Direct PLUS Consolidation Loans disbursed before July 1, 1998.
The new interest rates are in effect for the Direct Loan Program from July 1, 2002 through June 30, 2003 and are based on the interest rate formulas given by statutory authority. The interest rate formulas for these parent loans and parent 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 21, the weekly average of the 1-year constant maturity Treasury yield was 2.13 percent. The charts that follow show the interest rates in effect for the period July 1, 2002 through June 30, 2003. 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 of 3.1 percent.
Sincerely,
Jane Holman
Acting Director, Title IV Delivery
Schools Channel