| Page Range | 53861-53864 | |
| FR Document | 2018-23371 |
[Federal Register Volume 83, Number 207 (Thursday, October 25, 2018)] [Notices] [Pages 53861-53864] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-23371] ----------------------------------------------------------------------- DEPARTMENT OF EDUCATION Annual Notice of Interest Rates for Variable-Rate 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. ----------------------------------------------------------------------- SUMMARY: The Acting Chief Operating Officer for Federal Student Aid announces the interest rates for loans made under the Federal Family Education Loan (FFEL) Program that have variable interest rates. 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: 84.032. Section 427A of the Higher Education Act of 1965, as amended (HEA) (20 U.S.C. 1077a), provides formulas for determining the interest rates charged to borrowers on loans made under the FFEL Program, including Federal Subsidized and Unsubsidized Stafford Loans (Stafford Loans), Federal PLUS Loans (PLUS Loans), Federal Consolidation Loans (Consolidation Loans), and Federal Supplemental Loans for Students (SLS Loans). No new loans have been made under the FFEL Program since June 30, 2010. The FFEL Program includes loans with variable interest rates that change each year and loans with fixed interest rates that remain the same for the life of the loan. For loans with a variable interest rate, the specific interest rate formula that applies to a particular loan depends on the date of the first disbursement of the loan or, in the case of a Consolidation Loan, the date the application for the loan was received. If a loan has a variable interest rate, 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. This notice announces the interest rates for variable-rate FFEL Program loans that will be in effect during the period from July 1, 2018, through June 30, 2019. Interest rates for fixed-rate FFEL Program loans may be found in a Federal Register notice published on September 15, 2015 (80 FR 55342). For the majority of variable-rate FFEL Program loans, the annual interest rate is equal to the lesser of-- [[Page 53862]] (1) The bond equivalent rate of the 91-day Treasury bills auctioned at the final auction held before June 1 of each year, plus a statutory add-on percentage; or (2) A statutorily established maximum interest rate. The bond equivalent rate of the 91-day Treasury bills auctioned on May 29, 2018, is 1.931 percent, rounded to 1.93 percent. For PLUS Loans first disbursed before July 1, 1998, and for all SLS Loans, the annual interest rate is equal to the lesser of-- (1) The weekly average of the one-year constant maturity Treasury yield, as published by the Board of Governors of the Federal Reserve System for the last day of the calendar week ending on or before June 26 of each year, plus a statutory add-on percentage; or (2) A statutorily established maximum interest rate. The weekly average of the one-year constant maturity Treasury yield as published for the week ending on or before June 26, 2018, is 2.34 percent. For Consolidation Loans that have a variable interest rate, the annual interest rate for the portion of a Consolidation Loan that repaid loans other than loans made under the Health Education Assistance Loans (HEAL) Program is equal to-- (1) The bond equivalent rate of the 91-day Treasury bill auctioned at the final auction held before June 1 of each year, plus a statutory add-on percentage; or (2) A statutorily established maximum interest rate. If a Consolidation Loan (whether a variable-rate loan or a fixed- rate loan) repaid loans made under the HEAL Program, the interest rate on the portion of the Consolidation Loan that repaid HEAL loans is a variable rate that is equal to the average of the bond equivalent rates of the 91-day Treasury bills auctioned for the quarter ending June 30, plus a statutory add-on percentage. For the portion of a Consolidation Loan that repaid HEAL loans, there is no maximum interest rate. The average of the bond equivalent rates of the 91-day Treasury bills auctioned for the quarter ending on June 30, 2018, is 1.88 percent. The statutory add-on percentages and maximum interest rates vary depending on loan type and when the loan was first disbursed. In addition, the add-on percentage for certain Stafford Loans is different depending on whether the loan is in an in-school, grace, or deferment status, or in any other status. If the interest rate calculated in accordance with the applicable formula exceeds the statutory maximum interest rate, the statutory maximum rate applies. Charts 1 through 4 show the interest rate formulas that are used to determine the interest rates for all variable-rate FFEL Program loans and the interest rates that are in effect during the 12-month period from July 1, 2018, through June 30, 2019. Unless otherwise indicated, the cohorts shown in each chart include all borrowers, regardless of prior borrowing. Chart 1 shows the interest rates for loans with rates based on the 91-day Treasury bill, with the exception of ``converted'' variable-rate Federal Stafford Loans and certain Federal Consolidation Loans. Chart 2 shows the interest rates for loans with rates based on the weekly average of the one-year constant maturity Treasury yield. Chart 3 shows the interest rates for ``converted'' variable-rate Federal Stafford Loans. These are loans that originally had varying fixed interest rates. Finally, Chart 4 shows the interest rates for variable-rate Federal Consolidation Loans, and for the portion of any Federal Consolidation Loan that repaid loans made under the HEAL Program. Chart 1--Subsidized Federal Stafford Loans, Unsubsidized Federal Stafford Loans, and Federal Plus Loans [Interest rate 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 Stafford........... First disbursed 1.93 1.70 (in-school, 2.30 (any other 8.25 3.63 (in-school, 4.23 (any other Unsubsidized Stafford......... on/after 07/01/ grace, status). grace, status). 98 and before deferment). deferment). 07/01/06. -------------------------------------------------------------------------------------------------------------------------------------------------------- PLUS.......................... First disbursed 1.93 3.10 9.00 5.03 on/after 07/01/ 98 and before 07/01/06. -------------------------------------------------------------------------------------------------------------------------------------------------------- Subsidized Stafford........... First disbursed 1.93 2.50 (in-school, 3.10 (any other 8.25 4.43 (in-school, 5.03 (any other Unsubsidized Stafford......... on/after 07/01/ grace, status). grace, status). 95 and before deferment). deferment). 07/01/98. -------------------------------------------------------------------------------------------------------------------------------------------------------- Subsidized Stafford........... First disbursed 1.93 3.10 8.25 5.03 Unsubsidized Stafford......... on/after 07/01/ 94 and before 07/01/95, for a period of enrollment that included or began on or after 07/01/94. -------------------------------------------------------------------------------------------------------------------------------------------------------- Subsidized Stafford........... First disbursed 1.93 3.10 9.00 5.03 Unsubsidized Stafford......... on/after 10/01/ 92 and before 07/01/94; and First disbursed on/after 07/01/ 94, for a period of enrollment ending before 07/01/94 (new borrowers). -------------------------------------------------------------------------------------------------------------------------------------------------------- [[Page 53863]] Chart 2--Federal Plus Loans and SLS Loans [Interest rate based on weekly average of one-year constant maturity treasury yield] ---------------------------------------------------------------------------------------------------------------- Weekly average of 1-year constant maturity Interest rate treasury yield Maximum rate 07/01/18 Loan type Cohort for last Add-on (%) (%) through 06/30/ calendar week 19 (%) ending on or before 06/26/ 18 (%) ---------------------------------------------------------------------------------------------------------------- PLUS.................... First disbursed on/ 2.34 3.10 9.00 5.44 after 07/01/94 and before 07/01/98. PLUS.................... First disbursed on/ 2.34 3.10 10.00 5.44 after 10/01/92 and before 07/01/94. SLS..................... First disbursed on/ 2.34 3.10 11.00 5.44 after 10/01/92,for a period of enrollment beginning before 07/ 01/94. PLUS.................... First disbursed before 2.34 3.25 12.00 5.59 10/01/92. SLS ---------------------------------------------------------------------------------------------------------------- Chart 3--``Converted'' Variable-Rate Subsidized and Unsubsidized Federal Stafford Loans [Interest rate based on 91-day treasury bill] -------------------------------------------------------------------------------------------------------------------------------------------------------- Interest rate Original fixed interest 91-day T-bill Maximum rate 07/01/18 Loan type Cohort rate (later converted rate 05/29/18 Add-on (%) (%) through 06/30/ to variable rate) (%) (%) 19 (%) -------------------------------------------------------------------------------------------------------------------------------------------------------- Subsidized Stafford.................. First disbursed on or 8.00, increasing to 1.93 3.10 10.00 5.03 Unsubsidized Stafford................ after 07/23/92 and 10.00. before 07/01/94 (prior borrowers). Subsidized Stafford.................. First disbursed on or 9.00................... 1.93 3.10 9.00 5.03 Unsubsidized Stafford................ after 07/23/92 and before 07/01/94 (prior borrowers). Subsidized Stafford.................. First disbursed on or 8.00................... 1.93 3.10 8.00 5.03 Unsubsidized Stafford................ after 07/23/92 and before 07/01/94 (prior borrowers). Subsidized Stafford.................. First disbursed on or 7.00................... 1.93 3.10 7.00 5.03 Unsubsidized Stafford................ after 07/23/92 and before 07/01/94 (prior borrowers). Subsidized Stafford.................. First disbursed on or 8.00, increasing to 1.93 3.25 10.00 5.18 Unsubsidized Stafford................ after 07/23/92 and 10.00. before 10/01/92 (new borrowers). Subsidized Stafford.................. First disbursed on or 8.00, increasing to 1.93 3.25 10.00 5.18 Unsubsidized Stafford................ after 07/01/88 and 10.00. before 07/23/92. -------------------------------------------------------------------------------------------------------------------------------------------------------- Chart 4--Federal Consolidation Loans -------------------------------------------------------------------------------------------------------------------------------------------------------- Average of the bond equivalent rates of the Interest rate Consolidation loan component Cohort 91-day T-bill rate 05/ 91-day T-bills Add-on (%) Maximum rate 07/01/18 29/18 (%) auctioned for (%) through 06/30/ the quarter 19 (%) ending 06/30/ 18 (%) -------------------------------------------------------------------------------------------------------------------------------------------------------- Portion of loan that repaid loans Application received on/ 1.93................... N/A 3.10 8.25 5.03 other than HEAL loans. after 11/13/97 and before 10/01/98. Portion of the loan that repaid HEAL Application received on/ N/A.................... 1.88 3.00 None 4.88 loans. after 11/13/97. -------------------------------------------------------------------------------------------------------------------------------------------------------- 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 [[Page 53864]] 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 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: October 22, 2018. James F. Manning, Acting Chief Operating Officer, Federal Student Aid. [FR Doc. 2018-23371 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 53861 |