81 FR 68000 - Annual Notice of Variable Interest Rates of Federal Student Loans Made Under the Federal Family Education Loan Program Prior to July 1, 2010
DEPARTMENT OF EDUCATION Federal Register Volume 81, Issue 191 (October 3, 2016)
Federal Register Volume 81, Issue 191 (October 3, 2016)
| Page Range | 68000-68002 | |
| FR Document | 2016-23766 |
[Federal Register Volume 81, Number 191 (Monday, October 3, 2016)] [Notices] [Pages 68000-68002] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-23766] ======================================================================= ----------------------------------------------------------------------- DEPARTMENT OF EDUCATION Annual Notice of Variable Interest Rates of Federal Student Loans Made Under the Federal Family Education Loan Program Prior to July 1, 2010 AGENCY: Federal Student Aid, Department of Education. ACTION: Notice. ----------------------------------------------------------------------- Catalog of Federal Domestic Assistance (CFDA) Number: 84.032. SUMMARY: In accordance with section 427A of the Higher Education Act of 1965, as amended, (HEA), 20 U.S.C. 1077a, the Chief Operating Officer for Federal Student Aid announces the variable interest rates for the period July 1, 2016, through June 30, 2017, for certain loans made under the Federal Family Education Loan (FFEL) Program. The Chief Operating Officer takes this action to give notice of FFEL Program loan variable interest rates to the public. DATES: This notice is effective October 3, 2016. FOR FURTHER INFORMATION CONTACT: Rene Tiongquico, U.S. Department of Education, 830 First Street NE., 11th Floor, Washington, DC 20202. Telephone: (202) 377-4270 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 427A of the HEA, provides formulas for determining the interest rates charged to borrowers on loans made under the Federal Family Education Loan (FFEL) Program, including Federal Subsidized and Unsubsidized Stafford Loans, Federal PLUS Loans, and Federal Consolidation Loans. The FFEL Program includes loans with variable interest rates and loans with fixed interest rates. Most loans made under the FFEL 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 427A(l) of the HEA, FFEL Program loans first disbursed on or after July 1, 2006, and before July 1, 2010, have a fixed interest rate. The Chief Operating Officer is discontinuing providing the fixed interest rates for FFEL Program loans first disbursed on or after July 1, 2006 and before July 1, 2010. Interest rates for these loans may be found in a Federal Register notice published on September 15, 2015 (80 FR 55342). Federal Consolidation Loans made prior to November 13, 1997, and on or after October 1, 1998, have a fixed interest rate that is based on the weighted average of the loans that are consolidated. Interest rates for Federal Consolidation Loans made between November 13, 1997 and September 30, 1998 are provided in Chart 3. FFEL variable interest rates are based on formulas that use the bond equivalent rate of the 91-day Treasury bills auctioned at the final auction held before June 1 of each year plus a statutorily established add-on. These formulas apply to: All Federal Subsidized and Unsubsidized Stafford Loans first disbursed before October 1, 1992, that have been converted to variable rate loans; all Federal Subsidized and Unsubsidized Stafford Loans first disbursed on or after October 1, 1992, and before July 1, 2006; Federal PLUS Loans first disbursed on or after July 1, 1998, and before July 1, 2006; and Federal Consolidation Loans for which the Federal Consolidation Loan application was received on or after November 13, 1997, and before October 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 31, 2016, which is used to calculate the interest rates on these loans, is 0.345 rounded up to 0.35 percent. For Federal PLUS loans first disbursed before July 1, 1998, the interest rate 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 27, 2016, which is used to calculate the interest rate on these loans, is 0.55 percent. This notice includes three charts containing specific information on the calculation of variable interest rates for loans made under the FFEL Program: Chart 1 contains information on the interest rates for Federal Subsidized and Unsubsidized Stafford Loans that were made as fixed-rate loans, but were subsequently converted to variable-rate loans. Chart 2 contains information on the interest rates for variable- rate Federal Subsidized and Unsubsidized Stafford Loans. Chart 3 contains information on the interest rates for variable- rate Federal PLUS Loans, certain Federal Consolidation Loans, and Consolidation Loans that include loans made by the U.S. Department of Health and Human Services under subpart I of part A of title VII of the Public Health Service Act. Chart 1--``Converted'' Variable-Rate Federal Subsidized and Unsubsidized Stafford Loans Interest Rates in Effect for the Period 7/1/2016 Through 6/30/ 2017 -------------------------------------------------------------------------------------------------------------------------------------------------------- Cohort -------------------------------------------------------- First Original fixed interest rate Max. rate (%) 91-Day T-bill Margin (%) Total rate (%) First disbursed on or after disbursed rate (%) before -------------------------------------------------------------------------------------------------------------------------------------------------------- 7/1/1988............................... 7/23/1992 8.00%, increasing to 10.00%.... 10.00 0.35 3.25 3.60 7/23/1992.............................. 10/1/1992 8.00%, increasing to 10.00%.... 10.00 0.35 3.25 3.60 7/23/1992.............................. 7/1/1994 7.00%.......................... 7.00 0.35 3.10 3.45 7/23/1992.............................. 7/1/1994 8.00%.......................... 8.00 0.35 3.10 3.45 7/23/1992.............................. 7/1/1994 9.00%.......................... 9.00 0.35 3.10 3.45 [[Page 68001]] 7/23/1992.............................. 7/1/1994 8.00%, increasing to 10.00%.... 10.00 0.35 3.10 3.45 -------------------------------------------------------------------------------------------------------------------------------------------------------- Note: The FFEL Program loans represented by the second row of the chart were only made to ``new borrowers'' on or after July 23, 1992. Whether the FFEL Program loans represented by the third through sixth rows of the chart were made to a specific borrower depends on the interest rate on the borrower's existing loans (see the `Original Fixed Interest Rate' column in Chart 1) at the time the borrower received the loan(s) on or after July 23, 1992 and prior to July 1, 1994. In Charts 2 and 3, a dagger following a date in a cohort field indicates that the trigger for the rate to apply is a period of enrollment for which the loan was intended either ``ending before'' or ``beginning on or after'' the date in the cohort field. Chart 2--Variable-Rate Federal Subsidized and Unsubsidized Stafford Loans Interest Rates in Effect for the Period 7/1/2016 Through 6/30/2017 -------------------------------------------------------------------------------------------------------------------------------------------------------- Cohort Margin Total rate --------------------------------------------------------- --------------------------------------------------------------- First Max. rate (%) 91-Day T-bill In-school, In-school, First disbursed on or after disbursed rate (%) grace, All other grace, All other before deferment (%) periods (%) deferment (%) periods (%) -------------------------------------------------------------------------------------------------------------------------------------------------------- 10/1/1992............................... 7/1/1994 9.00 0.35 3.10 3.10 3.45 3.45 7/1/1994................................ 7/1/1994 9.00 0.35 3.10 3.10 3.45 3.45 [dagger] 7/1/1994................................ 7/1/1995 8.25 0.35 3.10 3.10 3.45 3.45 7/1/1995................................ 7/1/1998 8.25 0.35 2.50 3.10 2.85 3.45 7/1/1998................................ 7/1/2006 8.25 0.35 1.70 2.30 2.05 2.65 -------------------------------------------------------------------------------------------------------------------------------------------------------- Note: The FFEL Program loans represented in the first row in Chart 2 were only made to ``new borrowers'' on or after October 1, 1992. The FFEL Program loans represented in the second row in Chart 2 were only made to ``new borrowers'' on or after July 1, 1994. The FFEL Program loans represented in the third row in Chart 2 must--in addition to having been first disbursed on or after July 1, 1994, and before July 1, 1995--have been made for a period of enrollment that began on or included July 1, 1994. Chart 3--Variable-Rate Federal PLUS, SLS, and Consolidation Loans Interest Rates in Effect for the Period 7/1/2016 Through 6/30/2017 -------------------------------------------------------------------------------------------------------------------------------------------------------- Cohort Index rate -------------------------------- -------------------------------- 1-Year Loan type First First Max. rate (%) 91-Day T-bill constant Margin (%) Total rate (%) disbursed on disbursed rate (%) treasury or after before maturity -------------------------------------------------------------------------------------------------------------------------------------------------------- PLUS and SLS............................ .............. 10/1/1992 12.00 .............. 0.55 3.25 3.80 SLS..................................... 10/1/1992 [dagger] 7/1/ 11.00 .............. 0.55 3.10 3.65 1994 PLUS.................................... 10/1/1992 7/1/1994 10.00 .............. 0.55 3.10 3.65 PLUS.................................... 7/1/1994 7/1/1998 9.00 .............. 0.55 3.10 3.65 PLUS.................................... 7/1/1998 7/1/2006 9.00 0.35 .............. 3.10 3.45 -------------------------------------------------------------------------------------------------------------------------------------------------------- Average of the bond equivalent Application Application 91-Day T-bill rates of the Loan type received on or received Max. rate (%) rate (%) 91-Day T-bill Margin (%) Total rate (%) after before for the quarter prior to July 1 -------------------------------------------------------------------------------------------------------------------------------------------------------- Consolidation........................... 11/13/1997 10/1/1998 8.25 0.35 .............. 3.10 3.45 HHS Portion of Consolidation............ 11/13/1997 .............. .............. .............. 0.27 3.00 3.27 -------------------------------------------------------------------------------------------------------------------------------------------------------- The last row in Chart 3 refers to portions of Federal Consolidation Loans attributable to loans made by the U.S. Department of Health and Human Services under subpart I of part A of title VII of the Public Health Service Act. Note: No new loans have been made under the FFEL Program since June 30, 2010. 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 [[Page 68002]] 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. 1071 et seq. Dated: September 27, 2016. James W. Runcie, Chief Operating Officer, Federal Student Aid. [FR Doc. 2016-23766 Filed 9-30-16; 8:45 am] BILLING CODE 4000-01-P
![68000 Federal Register / Vol. 81, No. 191 / Monday, October 3, 2016 / Notices
provided to the membership for their SUPPLEMENTARY INFORMATION: Section Subsidized and Unsubsidized Stafford
consideration. 427A of the HEA, provides formulas for Loans first disbursed on or after October
Dated: September 28, 2016. determining the interest rates charged to 1, 1992, and before July 1, 2006; Federal
Aaron Siegel,
borrowers on loans made under the PLUS Loans first disbursed on or after
Federal Family Education Loan (FFEL) July 1, 1998, and before July 1, 2006;
Alternate OSD Federal Register Liaison
Program, including Federal Subsidized and Federal Consolidation Loans for
Officer, Department of Defense.
and Unsubsidized Stafford Loans, which the Federal Consolidation Loan
[FR Doc. 2016–23822 Filed 9–30–16; 8:45 am]
Federal PLUS Loans, and Federal application was received on or after
BILLING CODE 5001–06–P
Consolidation Loans. November 13, 1997, and before October
The FFEL Program includes loans 1, 1998. In each case, the calculated rate
with variable interest rates and loans is capped by a maximum interest rate.
DEPARTMENT OF EDUCATION with fixed interest rates. Most loans The bond equivalent rate of the 91-day
made under the FFEL Program before Treasury bills auctioned on May 31,
Annual Notice of Variable Interest July 1, 2006, have variable interest rates 2016, which is used to calculate the
Rates of Federal Student Loans Made that change each year. In most cases, the interest rates on these loans, is 0.345
Under the Federal Family Education variable interest rate formula that rounded up to 0.35 percent.
Loan Program Prior to July 1, 2010 applies to a particular loan depends on For Federal PLUS loans first
the date of the first disbursement of the disbursed before July 1, 1998, the
AGENCY: Federal Student Aid, loan. The variable rates are determined
Department of Education. interest rate is based on the weekly
annually and are effective for each 12- average of the one-year constant
ACTION: Notice. month period beginning July 1 of one maturity Treasury yield, as published by
year and ending June 30 of the following the Board of Governors of the Federal
Catalog of Federal Domestic Assistance year. Reserve System on the last day of the
(CFDA) Number: 84.032. Under section 427A(l) of the HEA, calendar week ending on or before June
SUMMARY: In accordance with section FFEL Program loans first disbursed on 26 of each year, plus a statutory add-on
427A of the Higher Education Act of or after July 1, 2006, and before July 1, percentage. The calculated rate is
1965, as amended, (HEA), 20 U.S.C. 2010, have a fixed interest rate. The capped by a maximum interest rate. The
1077a, the Chief Operating Officer for Chief Operating Officer is discontinuing weekly average of the one-year constant
Federal Student Aid announces the providing the fixed interest rates for maturity Treasury yield published on
variable interest rates for the period July FFEL Program loans first disbursed on June 27, 2016, which is used to
1, 2016, through June 30, 2017, for or after July 1, 2006 and before July 1, calculate the interest rate on these loans,
certain loans made under the Federal 2010. Interest rates for these loans may is 0.55 percent.
Family Education Loan (FFEL) Program. be found in a Federal Register notice
This notice includes three charts
The Chief Operating Officer takes this published on September 15, 2015 (80 FR
containing specific information on the
action to give notice of FFEL Program 55342).
calculation of variable interest rates for
loan variable interest rates to the public. Federal Consolidation Loans made
loans made under the FFEL Program:
prior to November 13, 1997, and on or
DATES: This notice is effective October after October 1, 1998, have a fixed Chart 1 contains information on the
3, 2016. interest rate that is based on the interest rates for Federal Subsidized and
FOR FURTHER INFORMATION CONTACT: weighted average of the loans that are Unsubsidized Stafford Loans that were
Rene Tiongquico, U.S. Department of consolidated. made as fixed-rate loans, but were
Education, 830 First Street NE., 11th Interest rates for Federal subsequently converted to variable-rate
Floor, Washington, DC 20202. Consolidation Loans made between loans.
Telephone: (202) 377–4270 or by email: November 13, 1997 and September 30, Chart 2 contains information on the
Rene.Tiongquico@ed.gov. 1998 are provided in Chart 3. interest rates for variable-rate Federal
If you use a telecommunications FFEL variable interest rates are based Subsidized and Unsubsidized Stafford
device for the deaf (TDD) or a text on formulas that use the bond Loans.
telephone (TTY), call the Federal Relay equivalent rate of the 91-day Treasury Chart 3 contains information on the
Service (FRS), toll free, at 1–800–877– bills auctioned at the final auction held interest rates for variable-rate Federal
8339. before June 1 of each year plus a PLUS Loans, certain Federal
Individuals with disabilities can statutorily established add-on. These Consolidation Loans, and Consolidation
obtain this document in an accessible formulas apply to: All Federal Loans that include loans made by the
format (e.g., braille, large print, Subsidized and Unsubsidized Stafford U.S. Department of Health and Human
audiotape, or compact disc) on request Loans first disbursed before October 1, Services under subpart I of part A of
to the contact person listed under FOR 1992, that have been converted to title VII of the Public Health Service
FURTHER INFORMATION CONTACT. variable rate loans; all Federal Act.
CHART 1—‘‘CONVERTED’’ VARIABLE-RATE FEDERAL SUBSIDIZED AND UNSUBSIDIZED STAFFORD LOANS INTEREST RATES
IN EFFECT FOR THE PERIOD 7/1/2016 THROUGH 6/30/2017
Cohort 91-Day T-bill
Max. rate Margin Total rate
sradovich on DSK3GMQ082PROD with NOTICES
Original fixed interest rate rate
First disbursed on First disbursed (%) (%) (%)
(%)
or after before
7/1/1988 ............... 7/23/1992 8.00%, increasing to 10.00% ............ 10.00 0.35 3.25 3.60
7/23/1992 ............. 10/1/1992 8.00%, increasing to 10.00% ............ 10.00 0.35 3.25 3.60
7/23/1992 ............. 7/1/1994 7.00% ................................................. 7.00 0.35 3.10 3.45
7/23/1992 ............. 7/1/1994 8.00% ................................................. 8.00 0.35 3.10 3.45
7/23/1992 ............. 7/1/1994 9.00% ................................................. 9.00 0.35 3.10 3.45
VerDate Sep<11>2014 17:56 Sep 30, 2016 Jkt 241001 PO 00000 Frm 00045 Fmt 4703 Sfmt 4703 E:\FR\FM\03OCN1.SGM 03OCN1](https://thefederalregister.org/doc/81_FR_68191/page/1.svg)
![68002 Federal Register / Vol. 81, No. 191 / Monday, October 3, 2016 / Notices
available via the Federal Digital System accepted. Written requests for to apply for funding under Title III, Part
at: www.gpo.gov/fdsys. At this site you information or comments submitted by A and Title V of the Higher Education
can view this document, as well as all postal mail or delivery should be Act of 1965, as amended. An institution
other documents of this Department addressed to the Director of the must apply to the Secretary to be
published in the Federal Register, in Information Collection Clearance designated as an eligible institution. The
text or Adobe Portable Document Division, U.S. Department of Education, programs authorized include the
Format (PDF). To use PDF you must 400 Maryland Avenue SW., LBJ, Room Strengthening Institutions, Alaskan
have Adobe Acrobat Reader, which is 2E–347, Washington, DC 20202–4537. Native and Native Hawaiian-Serving
available free at the site. FOR FURTHER INFORMATION CONTACT: For Institutions, Asian-American and Native
You may also access documents of the specific questions related to collection American Pacific Islander-Serving
Department published in the Federal activities, please contact Jason Cottrell, Institutions, Native American Serving
Register by using the article search 202–453–7530. Institutions, Hispanic-Serving
feature at: www.federalregister.gov. SUPPLEMENTARY INFORMATION: The Institutions, Hispanic-Serving
Specifically, through the advanced Department of Education (ED), in Institutions (Science, Technology,
search feature at this site, you can limit accordance with the Paperwork Engineering and Math and Articulation),
your search to documents published by Reduction Act of 1995 (PRA) (44 U.S.C. Promoting Postbaccalaureate
the Department. 3506(c)(2)(A)), provides the general Opportunities for Hispanic Americans,
Program Authority: 20 U.S.C. 1071 et seq. public and Federal agencies with an and Predominantly Black Institutions
Dated: September 27, 2016. opportunity to comment on proposed, Programs. These programs award
James W. Runcie, revised, and continuing collections of discretionary grants to eligible
information. This helps the Department institutions of higher education so that
Chief Operating Officer, Federal Student Aid.
assess the impact of its information they might increase their self-
[FR Doc. 2016–23766 Filed 9–30–16; 8:45 am]
collection requirements and minimize sufficiency by improving academic
BILLING CODE 4000–01–P
the public’s reporting burden. It also programs, institutional management and
helps the public understand the fiscal stability.
Department’s information collection
DEPARTMENT OF EDUCATION This collection of information is
requirements and provide the requested
[Docket No.: ED–2016–ICCD–0103] data in the desired format. ED is gathered electronically by the
soliciting comments on the proposed Department for the purpose of
Agency Information Collection information collection request (ICR) that determining an institution’s eligibility
Activities; Submission to the Office of is described below. The Department of to participate in the Title III and Title
Management and Budget for Review Education is especially interested in V programs based on its enrollment of
and Approval; Comment Request; public comment addressing the needy students and low average
Designation as an Eligible Institution following issues: (1) Is this collection educational and general (E&G)
Under the Title III and Title V Programs necessary to the proper functions of the expenditures per full-time equivalent
and To Request a Waiver of the Non- Department; (2) will this information be undergraduate student. This collection
Federal Cost Share Reimbursement processed and used in a timely manner; also allows an institution to request a
(1894–0001) (3) is the estimate of burden accurate; waiver of certain non-Federal cost-share
(4) how might the Department enhance requirements under Federal Work-Study
AGENCY: Office of Postsecondary Program, Federal Supplemental
the quality, utility, and clarity of the
Education (OPE), Department of Educational Opportunity Grant, Student
information to be collected; and (5) how
Education (ED). Support Services Program and the
might the Department minimize the
ACTION: Notice. burden of this collection on the Undergraduate International Studies
respondents, including through the use and Foreign Language Program.
SUMMARY: In accordance with the of information technology. Please note
Paperwork Reduction Act of 1995 (44 The collection is paired with a
that written comments received in computational exercise that results in
U.S.C. chapter 3501 et seq.), ED is response to this notice will be
proposing an extension of an existing the simultaneous publication of an
considered public records. Eligibility Matrix, a listing of
information collection. Title of Collection: Designation As An postsecondary institutions potentially
DATES: Interested persons are invited to Eligible Institution Under the Title III
submit comments on or before eligible to apply for grants in the
and Title V Programs and to Request A Institutional Service grant programs.
November 2, 2016. Waiver of the Non-Federal Cost Share
Criteria derived from applicable
ADDRESSES: To access and review all the Reimbursement (1894–0001).
legislation and regulations are applied
documents related to the information OMB Control Number: 1840–0103.
to enrollment and financial data from
collection listed in this notice, please Type of Review: An extension of an
Department sources to determine the
use http://www.regulations.gov by existing information collection.
eligibility of each institution for each
searching the Docket ID number ED– Respondents/Affected Public: State,
program. Only those institutions that
2016–ICCD–0103. Comments submitted Local, and Tribal Governments; Private
either do not meet the financial criteria
in response to this notice should be Sector.
or do not appear in the eligibility matrix
submitted electronically through the Total Estimated Number of Annual
sradovich on DSK3GMQ082PROD with NOTICES
need to go through the application
Federal eRulemaking Portal at http:// Responses: 250.
process.
www.regulations.gov by selecting the Total Estimated Number of Annual
Docket ID number or via postal mail, Burden Hours: 1,750. The results of the application process
commercial delivery, or hand delivery. Abstract: This collection of are a determination of eligibility for
Please note that comments submitted by information is necessary in order for the grant application and waiver, and
fax or email and those submitted after Secretary of Education to designate an updated information on institutional
the comment period will not be institution of higher education eligible eligibility which is added to the EM.
VerDate Sep<11>2014 17:56 Sep 30, 2016 Jkt 241001 PO 00000 Frm 00047 Fmt 4703 Sfmt 4703 E:\FR\FM\03OCN1.SGM 03OCN1](https://thefederalregister.org/doc/81_FR_68191/page/3.svg)
Document Created: 2018-02-13 14:11:34
Document Modified: 2018-02-13 14:11:34
| 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 October 3, 2016. | |
| Contact | Rene Tiongquico, U.S. Department of Education, 830 First Street NE., 11th Floor, Washington, DC 20202. Telephone: (202) 377-4270 or by email: [email protected] | |
| FR Citation | 81 FR 68000 |
2025 Federal Register | Disclaimer | Privacy Policy
USC | CFR | eCFR