| Page Range | 53858-53860 | |
| FR Document | 2018-23370 |
[Federal Register Volume 83, Number 207 (Thursday, October 25, 2018)] [Notices] [Pages 53858-53860] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-23370] ======================================================================= ----------------------------------------------------------------------- DEPARTMENT OF EDUCATION Annual Notice of Interest Rates for Variable-Rate Federal Student Loans Made Under the William D. Ford Federal Direct Loan Program AGENCY: Federal Student Aid, Department of Education. ACTION: Notice. ----------------------------------------------------------------------- SUMMARY: The Acting Chief Operating Officer for Federal Student Aid announces the interest rates for Federal Direct Stafford/Ford Loans (Direct Subsidized Loans), Federal Direct Unsubsidized Stafford/Ford Loans (Direct Unsubsidized Loans), and [[Page 53859]] Federal Direct PLUS Loans (Direct PLUS Loan) with first disbursement dates before July 1, 2006, and for Federal Direct Consolidation Loans (Direct Consolidation Loans) for which the application was received before February 1, 1999. The rates announced in this notice are in effect for the period July 1, 2018, through June 30, 2019. FOR FURTHER INFORMATION CONTACT: Jon Utz, U.S. Department of Education, 830 First Street NE, 11th Floor, Washington, DC 20202. Telephone: (202) 377-4040 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: Catalog of Federal Domestic Assistance (CFDA) Number: 84.268. Direct Subsidized Loans, Direct Unsubsidized Loans, Direct PLUS Loans, and Direct Consolidation Loans (collectively referred to as ``Direct Loans'') may have either fixed or variable interest rates, depending on when the loan was first disbursed or, in the case of a Direct Consolidation Loan, when the application for the loan was received. Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct PLUS Loans first disbursed before July 1, 2006, and Direct Consolidation Loans for which the application was received before February 1, 1999, have variable interest rates. For these loans, a new rate is determined annually and is in effect during the period from July 1 of one year through June 30 of the following year. Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct PLUS Loans first disbursed on or after July 1, 2006, and Direct Consolidation Loans for which the application was received on or after February 1, 1999, have fixed interest rates that apply for the life of the loan. This notice announces the interest rates for variable-rate Direct Loans that will apply during the period from July 1, 2018, through June 30, 2019. Interest rate information for fixed-rate Direct Loans is announced in a separate notice published in the Federal Register. Interest rates for variable-rate Direct Loans are determined in accordance with formulas specified in section 455(b) of the Higher Education Act of 1965, as amended (HEA) (20 U.S.C. 1087e(b)). The formulas vary depending on loan type and when the loan was first disbursed or, for certain Direct Consolidation Loans, when the application for the loan was received. The HEA specifies a maximum interest rate for these loan types. If the interest rate formula results in a rate that exceeds the statutory maximum rate, the rate is the statutory maximum rate. Variable-Rate Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct PLUS Loans For Direct Subsidized Loans and Direct Unsubsidized Loans with first disbursement dates before July 1, 2006, and for Direct PLUS Loans with first disbursement dates on or after July 1, 1998, and before July 1, 2006, the interest rate is equal to the lesser of-- (1) The bond equivalent rate of 91-day Treasury bills auctioned at the final auction held before the June 1 immediately preceding the 12- month period to which the interest rate applies, plus a statutory add- on percentage; or (2) 8.25 percent (for Direct Subsidized Loans and Direct Unsubsidized Loans) or 9.00 percent (for Direct PLUS Loans). For Direct Subsidized Loans and Direct Unsubsidized Loans with first disbursement dates on or after July 1, 1995, and before July 1, 2006, the statutory add-on percentage varies depending on whether the loan is in an in-school, grace, or deferment status, or in any other status. For all other loans, the statutory add-on percentage is the same during any status. The bond equivalent rate of 91-day Treasury bills auctioned on May 29, 2018, is 1.931 percent, rounded to 1.93 percent. For Direct PLUS Loans with first disbursement dates before July 1, 1998, the interest rate is equal to the lesser of-- (1) The weekly average 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 the June 26 preceding the 12-month period to which the interest rate applies, plus a statutory add-on percentage; or (2) 9.00 percent. The weekly average of the one-year constant maturity Treasury yield published on June 26, 2018, is 2.34 percent. Variable-Rate Direct Consolidation Loans A Direct Consolidation Loan may have up to three components, depending on the types of loans that were repaid by the consolidation loan and when the application for the consolidation loan was received. The three components are called Direct Subsidized Consolidation Loans, Direct Unsubsidized Consolidation Loans, and (only for Direct Consolidation Loans made based on applications received before July 1, 2006) Direct PLUS Consolidation Loans. In most cases the interest rates for variable-rate Direct Subsidized Consolidation Loans, Direct Unsubsidized Consolidation Loans, and Direct PLUS Consolidation Loans are determined in accordance with the same formulas that apply to Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct PLUS Loans, respectively. Interest Rate Charts Charts 1 and 2 show the interest rate formulas used to determine the interest rates for all variable-rate Direct Loans and the rates that are in effect during the 12-month period from July 1, 2018, through June 30, 2019. Chart 1 shows the interest rates for loans with rates based on the 91-day Treasury bill rate. Chart 2 shows the interest rates for loans with rates based on the weekly average of the one-year constant maturity Treasury yield. [[Page 53860]] Chart 1--Direct Subsidized Loans, Direct Unsubsidized Loans, Direct Subsidized Consolidation Loans, Direct Unsubsidized Consolidation Loans, Direct Plus Loans, and Direct Plus Consolidation Loans [Interest rates based on 91-day Treasury bill] -------------------------------------------------------------------------------------------------------------------------------------------------------- Loan type Cohort.......... 91-day T-bill Add-on (%) Maximum rate Interest rate 07/01/18 through 06/ rate 05/29/18 (%) 30/19 (%) (%) -------------------------------------------------------------------------------------------------------------------------------------------------------- Subsidized.................... First disbursed 1.93 1.70 (in-school, 2.30 (any other 8.25 3.63 (in-school, 4.23 (any other Unsubsidized.................. on/after 07/01/ grace, status). grace, status). 98 and before deferment). deferment). 07/01/06. Subsidized Consolidation...... First disbursed Unsubsidized Consolidation.... on/after 07/01/ 98 and before 10/01/98; or Application received before 10/01/98 and first disbursed on/after 10/01/ 98 -------------------------------------------------------------------------------------------------------------------------------------------------------- PLUS.......................... First disbursed 1.93 3.10 9.00 5.03 on/after 07/01/ 98 and before 07/01/06. -------------------------------------------------------------------------------------------------------------------------------------------------------- PLUS Consolidation............ First disbursed on/after 07/01/ 1998 and before 10/01/1998; or Application received before 10/01/98 and first disbursed on/after 10/01/ 98. -------------------------------------------------------------------------------------------------------------------------------------------------------- Subsidized.................... First disbursed 1.93 2.50 (in-school, 3.10 (any other 8.25 4.43 (in-school, 5.03 (any other Unsubsidized.................. on/after 07/01/ grace, status). grace, status). Subsidized Consolidation...... 95 and before deferment). deferment). Unsubsidized Consolidation.... 07/01/98. -------------------------------------------------------------------------------------------------------------------------------------------------------- Subsidized.................... First disbursed 1.93 3.10 8.25 5.03 Unsubsidized.................. before 07/01/95. Subsidized Consolidation...... Unsubsidized Consolidation.... -------------------------------------------------------------------------------------------------------------------------------------------------------- Subsidized Consolidation...... Application 1.93 2.30 8.25 4.23 Unsubsidized Consolidation.... received on/ PLUS Consolidation............ after 10/01/98 and before 02/ 01/99. -------------------------------------------------------------------------------------------------------------------------------------------------------- Chart 2--Direct Plus Loans and Direct Plus Consolidation Loans [Interest rates based on weekly average of one-year constant maturity treasury yield] ---------------------------------------------------------------------------------------------------------------- Weekly average of 1-year constant maturity treasury Interest rate yield for last Maximum rate 07/01/18 Loan type Cohort calendar week Add-on (%) (%) through 06/30/ ending on or 19 (%) before 06/26/18 (%) ---------------------------------------------------------------------------------------------------------------- PLUS........................ First disbursed 2.34 3.10 9.00 5.44 PLUS Consolidation.......... before 07/01/ 98. ---------------------------------------------------------------------------------------------------------------- Electronic Access to This Document: The official version of this document is the document published in the Federal Register. You may access the official edition of the Federal Register and the Code of Federal Regulations via the Federal Digital Syste Federal Register, in text or 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: October 22, 2018. James F. Manning, Acting Chief Operating Officer, Federal Student Aid. [FR Doc. 2018-23370 Filed 10-24-18; 8:45 am] BILLING CODE 4000-01-P
| 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. | |
| Contact | Jon Utz, U.S. Department of Education, 830 First Street NE, 11th Floor, Washington, DC 20202. Telephone: (202) 377-4040 or by email: [email protected] | |
| FR Citation | 83 FR 53858 |