80 FR 55344 - Annual Notice of Interest Rates of Federal Student Loans Made Under the William D. Ford Federal Direct Loan Program Prior to July 1, 2013
DEPARTMENT OF EDUCATION Federal Register Volume 80, Issue 178 (September 15, 2015)
Federal Register Volume 80, Issue 178 (September 15, 2015)
| Page Range | 55344-55346 | |
| FR Document | 2015-23160 |
[Federal Register Volume 80, Number 178 (Tuesday, September 15, 2015)] [Notices] [Pages 55344-55346] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2015-23160] ----------------------------------------------------------------------- DEPARTMENT OF EDUCATION Annual Notice of Interest Rates of Federal Student Loans Made Under the William D. Ford Federal Direct Loan Program Prior to July 1, 2013 AGENCY: Federal Student Aid, Department of Education. ACTION: Notice. ----------------------------------------------------------------------- Catalog of Federal Domestic Assistance (CFDA) Number: 84.268. DATES: This notice is effective September 15, 2015. SUMMARY: In accordance with section 455(b)(9) of the Higher Education Act of 1965, as amended, the Chief Operating Officer for Federal Student Aid announces the interest rates for the period July 1, 2015, through June 30, 2016, for loans made under the William D. Ford Federal Direct Loan (Direct Loan) Program prior to July 1, 2013. The Chief Operating Officer takes this action to give notice of Direct Loan interest rates to the public. FOR FURTHER INFORMATION CONTACT: Ian Foss, U.S. Department of Education, 830 First Street NE., Room 114I1, Washington, DC 20202. Telephone: (202) 377-3681 or by email: [email protected]. If you use a telecommunications device for the deaf (TDD) or a text telephone (TTY), call the Federal Relay Service (FRS), toll free, at 1- 800-877-8339. Individuals with disabilities can obtain this document in an accessible format (e.g., braille, large print, audiotape, or compact disc) on request to the contact person listed under FOR FURTHER INFORMATION CONTACT. SUPPLEMENTARY INFORMATION: Section 455(b) of the Higher Education Act of 1965, as amended (HEA) (20 U.S.C. 1087e(b)), provides formulas for determining the interest rates charged to borrowers for loans made under the Direct Loan Program including: Federal Direct Subsidized Stafford Loans (Direct Subsidized Loans); Federal Direct Unsubsidized Stafford Loans (Direct Unsubsidized Loans); Federal Direct PLUS Loans (Direct PLUS Loans); and Federal Direct Consolidation Loans (Direct Consolidation Loans) (collectively, ``Direct Loans.''). The Direct Loan Program includes loans with variable interest rates and loans with fixed interest rates. Most loans made under the Direct Loan Program before July 1, 2006, have variable interest rates that change each year. In most cases, the variable interest rate formula that applies to a particular loan depends on the date of the first disbursement of the loan. The variable rates are determined annually and are effective for each 12-month period beginning July 1 of one year and ending June 30 of the following year. Under section 455(b) of the HEA, Direct Loans first disbursed on or after July 1, 2006, have a fixed interest rate. In the case of some Direct Consolidation Loans, the interest rate is determined by the date on which the Direct Consolidation Loan application was received. Direct Consolidation Loans for which the application was received on or after February 1, 1999, have a fixed interest rate. This fixed rate is based on the weighted average of the loans that are consolidated, rounded up to the nearest higher 1/8 of one percent. Direct Consolidation Loans for which the application was received on or after February 1, 1999, and prior to July 1, 2013, have a maximum interest rate of 8.25 percent. Under section 455(b) of the HEA, the Direct Loan variable interest rates are based on formulas that use the bond equivalent rates of the 91-day Treasury bills auctioned at the final auction held before June 1 of each year, plus a [[Page 55345]] statutory add-on percentage. These formulas apply to: All Direct Subsidized Loans and Direct Unsubsidized Loans; Direct Consolidation Loans for which the application was received on or after July 1, 1998, and before February 1, 1999; and Direct PLUS Loans disbursed on or after July 1, 1998. In each case, the calculated rate is capped by a maximum interest rate. The bond equivalent rate of the 91-day Treasury bills auctioned on May 26, 2015, which is used to calculate the interest rates on these loans, is 0.02 percent. In addition, under section 455(b)(4) of the HEA, the interest rate for Direct PLUS Loans that were first disbursed on or after July 1, 1994, and before July 1, 1998, is based on the weekly average of the one-year constant maturity Treasury yield, as published by the Board of Governors of the Federal Reserve System on the last day of the calendar week ending on or before June 26 of each year, plus a statutory add-on percentage. The calculated rate is capped by a maximum interest rate. The weekly average of the one-year constant maturity Treasury yield published on June 29, 2015, which is used to calculate the interest rate on these loans, is 0.29 percent. This notice includes five charts containing specific information on the calculation of the interest rates for loans made under the Direct Loan Program prior to July 1, 2013. We published a separate notice containing the interest rates for Direct Loans made for the current award year on July 17, 2015 (See 80 FR 42488). Chart 1 contains information on the interest rates for variable- rate Direct Subsidized and Direct Unsubsidized Loans. Chart 2 contains information on the interest rates for variable- rate Direct PLUS Loans. Chart 3 contains information on the interest rates for variable- rate Direct Subsidized Consolidation Loans and Direct Unsubsidized Consolidation Loans. Chart 4 contains information on the interest rates for variable- rate Direct PLUS Consolidation Loans. Chart 5 contains information on the interest rates for fixed-rate Direct Subsidized, Direct Unsubsidized, and Direct PLUS Loans, and Direct Consolidation Loans. Chart 1--Variable-Rate Direct Subsidized and Direct Unsubsidized Loans -------------------------------------------------------------------------------------------------------------------------------------------------------- Cohort Index rate Margin Total rate --------------------------------------------------------------------------- ---------------------------------------------------------------- Max. rate In-school, In-school, First (%) 91-Day T- grace, All other grace, All other First disbursed on or after disbursed bill rate deferment periods (%) deferment periods (%) before (%) (%) (%) -------------------------------------------------------------------------------------------------------------------------------------------------------- 7/1/1994..................................................... 7/1/1995 8.25 0.02 3.10 3.10 3.12 3.12 7/1/1995..................................................... 7/1/1998 8.25 0.02 2.50 3.10 2.52 3.12 7/1/1998..................................................... 7/1/2006 8.25 0.02 1.70 2.30 1.72 2.32 -------------------------------------------------------------------------------------------------------------------------------------------------------- Chart 2--Variable-Rate Direct PLUS Loans ---------------------------------------------------------------------------------------------------------------- Cohort Index rate ------------------------------------------------ -------------------------- 1-Year First Max. rate 91-Day T- constant Margin (%) Total rate First disbursed on or after disbursed (%) bill rate treasury (%) before (%) maturity (%) ---------------------------------------------------------------------------------------------------------------- 7/1/1994.......................... 7/1/1998 9.00 ........... 0.29 3.10 3.39 7/1/1998.......................... 7/1/2006 8.25 0.02 ........... 3.10 3.12 ---------------------------------------------------------------------------------------------------------------- In Charts 3 through 5, an asterisk following a date in a cohort field indicates that the trigger for the rate to apply is an application for a Direct Consolidation Loan being received either ``on or after'' or ``before'' the date in the cohort field. For example, the fourth row in Chart 3 describes the interest rate for Direct Subsidized and Unsubsidized Consolidation Loans for which the application was received before October 1, 1998, and that were first disbursed on or after October 1, 1998. Chart 3--Variable-Rate Direct Subsidized and Direct Unsubsidized Consolidation Loans -------------------------------------------------------------------------------------------------------------------------------------------------------- Cohort Index rate Margin Total rate --------------------------------------------------------------------------- ---------------------------------------------------------------- Max. rate In-school, In-school, First (%) 91-Day T- grace, All other grace, All other First disbursed on or after disbursed bill rate deferment periods (%) deferment periods (%) before (%) (%) (%) -------------------------------------------------------------------------------------------------------------------------------------------------------- 7/1/1994..................................................... 7/1/1995 8.25 0.02 3.10 3.10 3.12 3.12 7/1/1995..................................................... 7/1/1998 8.25 0.02 2.50 3.10 2.52 3.12 7/1/1998..................................................... 10/1/1998 8.25 0.02 1.70 2.30 1.72 2.32 10/1/1998.................................................... * 10/1/1998 8.25 0.02 1.70 2.30 1.72 2.32 * 10/1/1998.................................................. * 2/1/1999 8.25 0.02 2.30 2.30 2.32 2.32 -------------------------------------------------------------------------------------------------------------------------------------------------------- [[Page 55346]] Chart 4--Variable-Rate Direct PLUS Consolidation Loans -------------------------------------------------------------------------------------------------------------------------------------------------------- Cohort Index rate Margin Total rate -------------------------------------------------------------- ----------------------------------------------------------------------------- 1-Year First Max. rate 91-Day T- constant In-school, In-school, First disbursed on or after disbursed (%) bill rate treasury grace, All other grace, All other before (%) maturity deferment periods (%) deferment periods (%) (%) (%) (%) -------------------------------------------------------------------------------------------------------------------------------------------------------- 7/1/1994........................................ 7/1/1998 9.00 ........... 0.29 3.10 3.10 3.39 3.39 7/1/1998........................................ 10/1/1998 9.00 0.02 ........... 3.10 3.10 3.12 3.13 10/1/1998....................................... * 10/1/1998 9.00 0.02 ........... 3.10 3.10 3.12 3.12 * 10/1/1998..................................... * 2/1/1999* 8.25 0.02 ........... 2.30 2.30 2.32 2.32 -------------------------------------------------------------------------------------------------------------------------------------------------------- Chart 5--Fixed-Rate Direct Subsidized, Direct Unsubsidized, Direct PLUS Loans, and Direct Consolidation Loans ---------------------------------------------------------------------------------------------------------------- First First Loan type Student grade level disbursed disbursed Rate on or after before ---------------------------------------------------------------------------------------------------------------- Subsidized.......................... Undergraduates......... 7/1/2006 7/1/2008 6.80% Subsidized.......................... Undergraduates......... 7/1/2008 7/1/2009 6.00% Subsidized.......................... Undergraduates......... 7/1/2009 7/1/2010 5.60% Subsidized.......................... Undergraduates......... 7/1/2010 7/1/2011 4.50% Subsidized.......................... Undergraduates......... 7/1/2011 7/1/2013 3.40% Subsidized.......................... Graduate/Professional 7/1/2006 7/1/2012 6.80% Students. Unsubsidized........................ All.................... 7/1/2006 7/1/2013 6.80% PLUS................................ Parents and Graduate/ 7/1/2006 7/1/2013 7.90% Professionals. Consolidation....................... All.................... 2/1/1999 7/1/2013 Weighted average of rates on the loans included in the consolidation, rounded to 1/8 of 1 percent, up to 8.25 percent. ---------------------------------------------------------------------------------------------------------------- Note: Interest rates for Direct Loans first disbursed on or after July 1, 2013, are published in a separate Federal Register notices, as follows:For Direct Loans first disbursed on or after July 1, 2013, and prior to July 1, 2014, see 78 FR 59011. For Direct Loans first disbursed on or after July 1, 2014, and prior to July 1, 2015, see 79 FR 37301. For Direct Loans first disbursed on or after July 1, 2015, and prior to July 1, 2016, see 80 FR 42488. Electronic Access to This Document: The official version of this document is the document published in the Federal Register. Free Internet access to the official edition of the Federal Register and the Code of Federal Regulations is available via the Federal Digital System at: www.thefederalregister.org/fdsys. At this site you can view this document, as well as all other documents of this Department published in the Federal Register, in text or Adobe Portable Document Format (PDF). To use PDF you must have Adobe Acrobat Reader, which is available free at the site. You may also access documents of the Department published in the Federal Register by using the article search feature at: www.federalregister.gov. Specifically, through the advanced search feature at this site, you can limit your search to documents published by the Department. Program Authority: 20 U.S.C. 1087 et seq. Dated: September 10, 2015. James W. Runcie, Chief Operating Officer, Federal Student Aid. [FR Doc. 2015-23160 Filed 9-14-15; 8:45 am] BILLING CODE 4000-01-P
![55344 Federal Register / Vol. 80, No. 178 / Tuesday, September 15, 2015 / Notices
CHART 4—FIXED-RATE CONSOLIDATION LOANS
First disbursed Max. rate
First disbursed on or after Rate
before (%)
7/1/1994 .................................. ........................ Weighted average of rates on the loans included in the con-
solidation, rounded to nearest whole percent, but not less
than 9.00%.
7/1/1994 ................................... 11/13/1997 * ............................ ........................ Weighted average of rates on the loans included in the con-
solidation, rounded upward to nearest whole percent.
10/1/1998 ................................. 7/1/2010 .................................. 8.25 Weighted average of rates on the loans included in the con-
solidation, rounded to the nearest higher 1/8 of 1 percent.
CHART 5—FIXED-RATE FEDERAL SUBSIDIZED AND UNSUBSIDIZED STAFFORD AND PLUS LOANS
First disbursed on First disbursed Rate
Loan type Student grade level or after before (%)
Subsidized ........................ Undergraduate Students ............................................. 7/1/2006 7/1/2008 6.80
Subsidized ........................ Undergraduate Students ............................................. 7/1/2008 7/1/2009 6.00
Subsidized ........................ Undergraduate Students ............................................. 7/1/2009 7/1/2010 5.60
Subsidized ........................ Graduate/Professional Students ................................. 7/1/2006 7/1/2010 6.80
Unsubsidized .................... All Students ................................................................. 7/1/2006 7/1/2010 6.80
PLUS ................................ Parents and Graduate/Professional Students ............ 7/1/2006 7/1/2010 8.50
Note: No new loans have been made under Catalog of Federal Domestic Unsubsidized Loans); Federal Direct
the FFEL Program since June 30, 2010. Assistance (CFDA) Number: 84.268. PLUS Loans (Direct PLUS Loans); and
Electronic Access to This Document: DATES: This notice is effective Federal Direct Consolidation Loans
The official version of this document is September 15, 2015. (Direct Consolidation Loans)
the document published in the Federal SUMMARY: In accordance with section (collectively, ‘‘Direct Loans.’’).
Register. Free Internet access to the 455(b)(9) of the Higher Education Act of The Direct Loan Program includes
official edition of the Federal Register 1965, as amended, the Chief Operating loans with variable interest rates and
and the Code of Federal Regulations is Officer for Federal Student Aid loans with fixed interest rates. Most
available via the Federal Digital System announces the interest rates for the loans made under the Direct Loan
at: www.gpo.gov/fdsys. At this site you period July 1, 2015, through June 30, Program before July 1, 2006, have
can view this document, as well as all 2016, for loans made under the William variable interest rates that change each
other documents of this Department D. Ford Federal Direct Loan (Direct year. In most cases, the variable interest
published in the Federal Register, in Loan) Program prior to July 1, 2013. The rate formula that applies to a particular
text or Adobe Portable Document Chief Operating Officer takes this action loan depends on the date of the first
Format (PDF). To use PDF you must to give notice of Direct Loan interest disbursement of the loan. The variable
have Adobe Acrobat Reader, which is rates to the public. rates are determined annually and are
available free at the site. effective for each 12-month period
FOR FURTHER INFORMATION CONTACT: Ian
You may also access documents of the beginning July 1 of one year and ending
Foss, U.S. Department of Education, 830 June 30 of the following year.
Department published in the Federal First Street NE., Room 114I1,
Register by using the article search Under section 455(b) of the HEA,
Washington, DC 20202. Telephone: Direct Loans first disbursed on or after
feature at: www.federalregister.gov.
(202) 377–3681 or by email: ian.foss@ July 1, 2006, have a fixed interest rate.
Specifically, through the advanced
ed.gov. In the case of some Direct
search feature at this site, you can limit
If you use a telecommunications Consolidation Loans, the interest rate is
your search to documents published by
device for the deaf (TDD) or a text determined by the date on which the
the Department.
telephone (TTY), call the Federal Relay Direct Consolidation Loan application
Program Authority: 20 U.S.C. 1071 et seq. Service (FRS), toll free, at 1–800–877– was received. Direct Consolidation
Dated: September 10, 2015. 8339. Loans for which the application was
James W. Runcie, Individuals with disabilities can received on or after February 1, 1999,
Chief Operating Officer, Federal Student Aid. obtain this document in an accessible have a fixed interest rate. This fixed rate
[FR Doc. 2015–23165 Filed 9–14–15; 8:45 am]
format (e.g., braille, large print, is based on the weighted average of the
BILLING CODE 4000–01–P
audiotape, or compact disc) on request loans that are consolidated, rounded up
to the contact person listed under FOR to the nearest higher 1/8 of one percent.
FURTHER INFORMATION CONTACT. Direct Consolidation Loans for which
DEPARTMENT OF EDUCATION SUPPLEMENTARY INFORMATION: Section the application was received on or after
455(b) of the Higher Education Act of February 1, 1999, and prior to July 1,
Annual Notice of Interest Rates of
mstockstill on DSK4VPTVN1PROD with NOTICES
1965, as amended (HEA) (20 U.S.C. 2013, have a maximum interest rate of
Federal Student Loans Made Under the 1087e(b)), provides formulas for 8.25 percent.
William D. Ford Federal Direct Loan determining the interest rates charged to Under section 455(b) of the HEA, the
Program Prior to July 1, 2013 borrowers for loans made under the Direct Loan variable interest rates are
AGENCY: Federal Student Aid, Direct Loan Program including: Federal based on formulas that use the bond
Department of Education. Direct Subsidized Stafford Loans (Direct equivalent rates of the 91-day Treasury
Subsidized Loans); Federal Direct bills auctioned at the final auction held
ACTION: Notice.
Unsubsidized Stafford Loans (Direct before June 1 of each year, plus a
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![55346 Federal Register / Vol. 80, No. 178 / Tuesday, September 15, 2015 / Notices
CHART 4—VARIABLE-RATE DIRECT PLUS CONSOLIDATION LOANS
Cohort Index rate Margin Total rate
1-Year
Max. rate In-school, All In-school, All
First 91-Day constant
(%) grace, other grace, other
First disbursed on or after disbursed T-bill rate treasury deferment periods deferment periods
before (%) maturity (%) (%) (%) (%)
(%)
7/1/1994 ........................... 7/1/1998 9.00 .................... 0.29 3.10 3.10 3.39 3.39
7/1/1998 ........................... 10/1/1998 9.00 0.02 .................... 3.10 3.10 3.12 3.13
10/1/1998 ......................... * 10/1/1998 9.00 0.02 .................... 3.10 3.10 3.12 3.12
* 10/1/1998 ....................... * 2/1/1999* 8.25 0.02 .................... 2.30 2.30 2.32 2.32
CHART 5—FIXED-RATE DIRECT SUBSIDIZED, DIRECT UNSUBSIDIZED, DIRECT PLUS LOANS, AND DIRECT CONSOLIDATION
LOANS
First First
Loan type Student grade level disbursed disbursed Rate
on or after before
Subsidized ......................................... Undergraduates ................................ 7/1/2006 7/1/2008 6.80%
Subsidized ......................................... Undergraduates ................................ 7/1/2008 7/1/2009 6.00%
Subsidized ......................................... Undergraduates ................................ 7/1/2009 7/1/2010 5.60%
Subsidized ......................................... Undergraduates ................................ 7/1/2010 7/1/2011 4.50%
Subsidized ......................................... Undergraduates ................................ 7/1/2011 7/1/2013 3.40%
Subsidized ......................................... Graduate/Professional Students ....... 7/1/2006 7/1/2012 6.80%
Unsubsidized ..................................... All ...................................................... 7/1/2006 7/1/2013 6.80%
PLUS ................................................. Parents and Graduate/Professionals 7/1/2006 7/1/2013 7.90%
Consolidation ..................................... All ...................................................... 2/1/1999 7/1/2013 Weighted average of rates on the
loans included in the consolida-
tion, rounded to 1/8 of 1 percent,
up to 8.25 percent.
Note: Interest rates for Direct Loans your search to documents published by DATES: Interested persons are invited to
first disbursed on or after July 1, 2013, the Department. submit comments on or before October
are published in a separate Federal Program Authority: 20 U.S.C. 1087 et seq. 15, 2015.
Register notices, as follows: ADDRESSES: To access and review all the
Dated: September 10, 2015.
• For Direct Loans first disbursed on documents related to the information
or after July 1, 2013, and prior to July James W. Runcie, collection listed in this notice, please
1, 2014, see 78 FR 59011. Chief Operating Officer, Federal Student Aid. use http://wwww.regulations.gov by
• For Direct Loans first disbursed on [FR Doc. 2015–23160 Filed 9–14–15; 8:45 am] searching the Docket ID number ED–
or after July 1, 2014, and prior to July BILLING CODE 4000–01–P 2015–ICCD–0091. Comments submitted
1, 2015, see 79 FR 37301. in response to this notice should be
• For Direct Loans first disbursed on submitted electronically through the
or after July 1, 2015, and prior to July DEPARTMENT OF EDUCATION Federal eRulemaking Portal at http://
1, 2016, see 80 FR 42488. www.regulations.gov by selecting the
Electronic Access to This Document: [Docket No. ED–2015–ICCD–0091] Docket ID number or via postal mail,
The official version of this document is commercial delivery, or hand delivery.
the document published in the Federal Agency Information Collection Please note that comments submitted by
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official edition of the Federal Register Management and Budget for Review the comment period will not be
and the Code of Federal Regulations is and Approval; Comment Request; accepted. Written requests for
available via the Federal Digital System Early Childhood Longitudinal Study, information or comments submitted by
at: www.gpo.gov/fdsys. At this site you Kindergarten Class of 2010–11 (ECLS– postal mail or delivery should be
can view this document, as well as all K:2011) Spring Fifth-Grade National addressed to the Director of the
other documents of this Department Data Collection Information Collection Clearance
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text or Adobe Portable Document
Statistics (NCES), Department of 2E105, Washington, DC 20202–4537.
Format (PDF). To use PDF you must
Education (ED). FOR FURTHER INFORMATION CONTACT: For
have Adobe Acrobat Reader, which is
mstockstill on DSK4VPTVN1PROD with NOTICES
available free at the site. ACTION: Notice. specific questions related to collection
You may also access documents of the activities, please contact Kashka
Department published in the Federal SUMMARY: In accordance with the Kubzdela, (202) 502–7411 or by email
Register by using the article search Paperwork Reduction Act of 1995 (44 kashka.kubzdela@ed.gov.
feature at: www.federalregister.gov. U.S.C. chapter 3501 et seq.), ED is SUPPLEMENTARY INFORMATION: The
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Document Created: 2015-12-15 10:09:11
Document Modified: 2015-12-15 10:09:11
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Notices | |
| Action | Notice. | |
| Dates | This notice is effective September 15, 2015. | |
| Contact | Ian Foss, U.S. Department of Education, 830 First Street NE., Room 114I1, Washington, DC 20202. Telephone: (202) 377-3681 or by email: [email protected] | |
| FR Citation | 80 FR 55344 |
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