83 FR 53864 - Annual Notice of Interest Rates for Fixed-Rate Federal Student Loans Made Under the William D. Ford Federal Direct Loan Program
DEPARTMENT OF EDUCATION Federal Register Volume 83, Issue 207 (October 25, 2018)
Federal Register Volume 83, Issue 207 (October 25, 2018)
| Page Range | 53864-53866 | |
| FR Document | 2018-23372 |
[Federal Register Volume 83, Number 207 (Thursday, October 25, 2018)] [Notices] [Pages 53864-53866] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-23372] ----------------------------------------------------------------------- DEPARTMENT OF EDUCATION Annual Notice of Interest Rates for Fixed-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 Federal Direct PLUS Loans (Direct PLUS Loans) made under the William D. Ford Federal Direct Loan (Direct Loan) Program with first disbursement dates on or after July 1, 2018, and before July 1, 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. 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 on or after [[Page 53865]] 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. 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 that are determined annually and are in effect during the period from July 1 of one year through June 30 of the following year. This notice announces the fixed interest rates for Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct PLUS Loans with first disbursement dates on or after July 1, 2018, and before July 1, 2019, and provides interest rate information for other fixed-rate Direct Loans. Interest rate information for variable-rate Direct Loans is announced in a separate Federal Register Notice. Fixed-Rate Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct PLUS Loans First Disbursed on or After July 1, 2013 Section 455(b) of the Higher Education Act of 1965, as amended (HEA) (20 U.S.C. 1087e(b)) includes formulas for determining the interest rates for all Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct PLUS Loans first disbursed on or after July 1, 2013. The interest rate for these loans is a fixed rate that is determined annually for all loans first disbursed during any 12-month period beginning on July 1 and ending on June 30. The rate is equal to the high yield of the 10-year Treasury notes auctioned at the final auction held before June 1 of that 12-month period, plus a statutory add-on percentage that varies depending on the loan type and, for Direct Unsubsidized Loans, whether the loan was made to an undergraduate or graduate student. The calculated interest rate may not exceed a maximum rate specified in the HEA. If the interest rate formula results in a rate that exceeds the statutory maximum rate, the rate is the statutory maximum rate. Loans first disbursed during different 12-month periods that begin on July 1 and end on June 30 may have different interest rates, but the rate determined for any loan is a fixed interest rate for the life of the loan. On May 9, 2018, the United States Treasury Department held a 10- year Treasury note auction that resulted in a high yield of 2.995 percent. Chart 1 shows the fixed interest rates for Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct PLUS Loans first disbursed on or after July 1, 2018, and before July 1, 2019. Chart 1--Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct Plus Loans First Disbursed on or After 07/01/2018 and Before 07/01/2019 ---------------------------------------------------------------------------------------------------------------- 10-year treasury note Maximum rate Fixed interest Loan type Borrower type high yield 05/ Add-on (%) (%) rate (%) 09/2018 (%) ---------------------------------------------------------------------------------------------------------------- Direct Subsidized Loans....... Undergraduate 2.995 2.05 8.25 5.05 students. Direct Unsubsidized Loans Direct Unsubsidized Loans \1\. Graduate and 2.995 3.60 9.50 6.60 professional students. Direct PLUS Loans............. Parents of 2.995 4.60 10.50 7.60 dependent undergraduate students. Graduate and professional students. ---------------------------------------------------------------------------------------------------------------- For reference, Chart 2 compares the fixed interest rates for Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct PLUS Loans first disbursed during the period July 1, 2018, through June 30, 2019, with the fixed interest rates for loans first disbursed during each previous 12-month period from July 1, 2013, through June 30, 2018. --------------------------------------------------------------------------- \1\ Graduate and professional students are not eligible to receive Direct Subsidized Loans. Chart 2--Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct Plus Loans First Disbursed on or After 07/01/2013 and Before 07/01/2019 -------------------------------------------------------------------------------------------------------------------------------------------------------- First disbursed Fixed interest rates (%) -------------------------------------------------------------------------------------------------------- Direct subsidized Direct loans Direct unsubsidized Federal Register Notice On/after Before unsubsidized loans Direct PLUS loans (graduate or loans (undergraduate professional students) students) -------------------------------------------------------------------------------------------------------------------------------------------------------- 07/01/2018............................. 07/01/2019 5.05 6.60 7.60 N/A. 07/01/2017............................. 07/01/2018 4.45 6.00 7.00 82 FR 29062 (June 27, 2017). 07/01/2016............................. 07/01/2017 3.76 5.31 6.31 81 FR 38159 (June 13, 2016). 07/01/2015............................. 07/01/2016 4.29 5.84 6.84 80 FR 42488 (July 17, 2015). 07/01/2014............................. 07/01/2015 4.66 6.21 7.21 79 FR 37301 (July 1, 2014). 07/01/2013............................. 07/01/2014 3.86 5.41 6.41 78 FR 59011 (September 25, 2013). -------------------------------------------------------------------------------------------------------------------------------------------------------- [[Page 53866]] Fixed-Rate Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct PLUS Loans First Disbursed on or After July 1, 2006, and Before July 2, 2013 Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct PLUS Loans first disbursed on or after July 1, 2006, and before July 1, 2013, have fixed interest rates that are specified in section 455(b) of the HEA (20 U.S.C. 1087e(b)). Chart 3 shows the interest rates for these loans. Chart 3--Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct Plus Loans First Disbursed on or After 07/01/2006 and Before 07/01/2013 ---------------------------------------------------------------------------------------------------------------- First First Loan type Borrower type disbursed on/ disbursed Interest rate after before (%) ---------------------------------------------------------------------------------------------------------------- Subsidized............................ Undergraduate students.. 07/01/2011 07/01/2013 3.40 Subsidized............................ Undergraduate students.. 07/01/2010 07/01/2011 4.50 Subsidized............................ Undergraduate students.. 07/01/2009 07/01/2010 5.60 Subsidized............................ Undergraduate students.. 07/01/2008 07/01/2009 6.00 Subsidized............................ Undergraduate students.. 07/01/2006 07/01/2008 6.80 Subsidized............................ Graduate or professional 07/01/2006 \2\ 07/01/2012 6.80 students. Unsubsidized.......................... Undergraduate and 07/01/2006 07/01/2013 6.80 graduate or professional. PLUS.................................. Graduate or professional 07/01/2006 07/01/2013 7.90 students and parents of dependent undergraduate students. ---------------------------------------------------------------------------------------------------------------- Fixed-Rate Direct Consolidation Loans Section 455(b) of the HEA specifies that all Direct Consolidation Loans for which the application was received on or after February 1, 1999, have a fixed interest rate that is equal to the weighted average of the interest rates on the loans consolidated, rounded to the nearest higher one-eighth of one percent. For Direct Consolidation Loans for which the application was received on or after February 1, 1999, and before July 1, 2013, the interest rate may not exceed 8.25 percent. However, under 455(b) of the HEA the 8.25 percent interest rate cap does not apply to Direct Consolidation Loans made based on applications received on or after July 1, 2013. Chart 4 shows the interest rates for fixed-rate Direct Consolidation Loans. Chart 4--Direct Consolidation Loans Made Based on Applications Received on or After 02/01/1999 ------------------------------------------------------------------------ Maximum Application received Interest rate (%) interest rate (%) ------------------------------------------------------------------------ On/after 07/01/2013............... Weighted average of None the interest rates on the loans consolidated, rounded to the nearest higher one- eighth of one percent. On/after 02/01/1999 and before 07/ (same as above)..... 8.25 01/2013. ------------------------------------------------------------------------ Accessible Format: Individuals with disabilities can obtain this document in an accessible format (e.g., braille, large print, audiotape, or compact disc) by contacting the person listed under FOR FURTHER INFORMATION CONTACT. --------------------------------------------------------------------------- \2\ Effective for loan periods beginning on or after July 1, 2012, graduate and professional students are no longer eligible to receive Direct Subsidized Loans. --------------------------------------------------------------------------- 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 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. 1087, et seq. Dated: October 22, 2018. James F. Manning, Acting Chief Operating Officer, Federal Student Aid. [FR Doc. 2018-23372 Filed 10-24-18; 8:45 am] BILLING CODE 4000-01-P
![53864 Federal Register / Vol. 83, No. 207 / Thursday, October 25, 2018 / Notices
Federal Digital System at: www.gpo.gov/ FOR FURTHER INFORMATION CONTACT: For counted for 90/10 purposes. The
fdsys. At this site you can view this specific questions related to collection regulations require an institution to
document, as well as all other activities, please contact Beth disclose in a footnote to its audited
documents of this Department Grebeldinger, 202–377–4018. financial statements the amounts of
published in the Federal Register, in SUPPLEMENTARY INFORMATION: The Federal and non-Federal revenues, by
text or Portable Document Format Department of Education (ED), in category, that it used in calculating its
(PDF). To use PDF you must have accordance with the Paperwork 90/10 ratio (see section 487(d) of the
Adobe Acrobat Reader, which is Reduction Act of 1995 (PRA) (44 U.S.C. HEA). This is a request to extend the
available free at the site. 3506(c)(2)(A)), provides the general information collection that identifies the
You may also access documents of the public and Federal agencies with an reporting burden for this regulation.
Department published in the Federal opportunity to comment on proposed, Dated: October 22, 2018.
Register by using the article search revised, and continuing collections of Kate Mullan,
feature at: www.federalregister.gov. information. This helps the Department
Specifically, through the advanced Acting Director, Information Collection
assess the impact of its information Clearance Division, Office of the Chief Privacy
search feature at this site, you can limit collection requirements and minimize Officer, Office of Management.
your search to documents published by the public’s reporting burden. It also [FR Doc. 2018–23364 Filed 10–24–18; 8:45 am]
the Department. helps the public understand the BILLING CODE 4000–01–P
Program Authority: 20 U.S.C. 1071 et seq. Department’s information collection
Dated: October 22, 2018. requirements and provide the requested
James F. Manning, data in the desired format. ED is DEPARTMENT OF EDUCATION
Acting Chief Operating Officer, Federal soliciting comments on the proposed
Student Aid. information collection request (ICR) that Annual Notice of Interest Rates for
is described below. The Department of Fixed-Rate Federal Student Loans
[FR Doc. 2018–23371 Filed 10–24–18; 8:45 am]
Education is especially interested in Made Under the William D. Ford
BILLING CODE 4000–01–P
public comment addressing the Federal Direct Loan Program
following issues: (1) Is this collection
AGENCY: Federal Student Aid,
DEPARTMENT OF EDUCATION necessary to the proper functions of the
Department of Education.
Department; (2) will this information be
[Docket No.: ED–2018–ICCD–0111] processed and used in a timely manner; ACTION: Notice.
(3) is the estimate of burden accurate; SUMMARY: The Acting Chief Operating
Agency Information Collection
(4) how might the Department enhance Officer for Federal Student Aid
Activities; Comment Request; Student
the quality, utility, and clarity of the announces the interest rates for Federal
Assistance General Provisions—Non-
information to be collected; and (5) how Direct Stafford/Ford Loans (Direct
Title IV Revenue Requirements (90/10)
might the Department minimize the Subsidized Loans), Federal Direct
AGENCY: Federal Student Aid (FSA), burden of this collection on the Unsubsidized Stafford/Ford Loans
Department of Education (ED). respondents, including through the use (Direct Unsubsidized Loans), and
ACTION: Notice. of information technology. Please note Federal Direct PLUS Loans (Direct PLUS
that written comments received in Loans) made under the William D. Ford
SUMMARY: In accordance with the response to this notice will be
Paperwork Reduction Act of 1995, ED is Federal Direct Loan (Direct Loan)
considered public records. Program with first disbursement dates
proposing an extension of an existing Title of Collection: Student Assistance
information collection. on or after July 1, 2018, and before July
General Provisions—Non-Title IV 1, 2019.
DATES: Interested persons are invited to Revenue Requirements (90/10).
submit comments on or before FOR FURTHER INFORMATION CONTACT: Jon
OMB Control Number: 1845–0096.
December 24, 2018. Type of Review: An extension of an Utz, U.S. Department of Education, 830
ADDRESSES: To access and review all the existing information collection. First Street NE, 11th Floor, Washington,
documents related to the information Respondents/Affected Public: Private DC 20202. Telephone: (202) 377–4040
collection listed in this notice, please Sector. or by email: Jon.Utz@ed.gov.
use http://www.regulations.gov by Total Estimated Number of Annual If you use a telecommunications
searching the Docket ID number ED– Responses: 1,872. device for the deaf (TDD) or a text
2018–ICCD–0111. Comments submitted Total Estimated Number of Annual telephone (TTY), call the Federal Relay
in response to this notice should be Burden Hours: 2,808. Service (FRS), toll free, at 1–800–877–
submitted electronically through the Abstract: As enacted by the Higher 8339.
Federal eRulemaking Portal at http:// Education Opportunity Act (Pub. L. SUPPLEMENTARY INFORMATION: Catalog of
www.regulations.gov by selecting the 110–315), the regulations in 34 CFR Federal Domestic Assistance (CFDA)
Docket ID number or via postal mail, 668.28 provide that a proprietary Number: 84.268.
commercial delivery, or hand delivery. institution must derive at least 10% of Direct Subsidized Loans, Direct
Please note that comments submitted by its annual revenue from sources other Unsubsidized Loans, Direct PLUS
fax or email and those submitted after than Title IV, HEA funds, sanctions for Loans, and Direct Consolidation Loans
the comment period will not be failing to meet this requirement, and (collectively referred to as ‘‘Direct
accepted. Written requests for otherwise implement the statute by (1) Loans’’) may have either fixed or
daltland on DSKBBV9HB2PROD with NOTICES
information or comments submitted by specifying a Net Present Value (NPV) variable interest rates, depending on
postal mail or delivery should be formula used to establish the revenue when the loan was first disbursed or, in
addressed to the Director of the for institutional loans, (2) providing an the case of a Direct Consolidation Loan,
Information Collection Clearance administratively easier alternative to the when the application for the loan was
Division, U.S. Department of Education, NPV calculation, and (3) describing received. Direct Subsidized Loans,
550 12th Street SW, PCP, Room 9086, more fully the non-Title IV eligible Direct Unsubsidized Loans, and Direct
Washington, DC 20202–0023. programs from which revenue may be PLUS Loans first disbursed on or after
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![53866 Federal Register / Vol. 83, No. 207 / Thursday, October 25, 2018 / Notices
Fixed-Rate Direct Subsidized Loans, Loans first disbursed on or after July 1,
Direct Unsubsidized Loans, and Direct 2006, and before July 1, 2013, have fixed
PLUS Loans First Disbursed on or After interest rates that are specified in
July 1, 2006, and Before July 2, 2013 section 455(b) of the HEA (20 U.S.C.
Direct Subsidized Loans, Direct 1087e(b)). Chart 3 shows the interest
Unsubsidized Loans, and Direct PLUS rates for these loans.
CHART 3—DIRECT SUBSIDIZED LOANS, DIRECT UNSUBSIDIZED LOANS, AND DIRECT PLUS LOANS FIRST DISBURSED ON OR
AFTER 07/01/2006 AND BEFORE 07/01/2013
First First Interest
Loan type Borrower type disbursed disbursed rate
on/after before (%)
Subsidized .................. Undergraduate students ..................................................................... 07/01/2011 07/01/2013 3.40
Subsidized .................. Undergraduate students ..................................................................... 07/01/2010 07/01/2011 4.50
Subsidized .................. Undergraduate students ..................................................................... 07/01/2009 07/01/2010 5.60
Subsidized .................. Undergraduate students ..................................................................... 07/01/2008 07/01/2009 6.00
Subsidized .................. Undergraduate students ..................................................................... 07/01/2006 07/01/2008 6.80
Subsidized .................. Graduate or professional students ..................................................... 07/01/2006 2 07/01/2012 6.80
Unsubsidized .............. Undergraduate and graduate or professional .................................... 07/01/2006 07/01/2013 6.80
PLUS .......................... Graduate or professional students and parents of dependent under- 07/01/2006 07/01/2013 7.90
graduate students.
Fixed-Rate Direct Consolidation Loans the loans consolidated, rounded to the 455(b) of the HEA the 8.25 percent
Section 455(b) of the HEA specifies nearest higher one-eighth of one interest rate cap does not apply to Direct
that all Direct Consolidation Loans for percent. For Direct Consolidation Loans Consolidation Loans made based on
which the application was received on for which the application was received applications received on or after July 1,
or after February 1, 1999, have a fixed on or after February 1, 1999, and before 2013. Chart 4 shows the interest rates
interest rate that is equal to the July 1, 2013, the interest rate may not for fixed-rate Direct Consolidation
weighted average of the interest rates on exceed 8.25 percent. However, under Loans.
CHART 4—DIRECT CONSOLIDATION LOANS MADE BASED ON APPLICATIONS RECEIVED ON OR AFTER 02/01/1999
Maximum
Interest rate
Application received interest rate
(%) (%)
On/after 07/01/2013 .................................................................... Weighted average of the interest rates on the loans consoli- None
dated, rounded to the nearest higher one-eighth of one per-
cent.
On/after 02/01/1999 and before 07/01/2013 .............................. (same as above) ........................................................................ 8.25
Accessible Format: Individuals with Adobe Acrobat Reader, which is DEPARTMENT OF ENERGY
disabilities can obtain this document in available free at the site.
an accessible format (e.g., braille, large You may also access documents of the Biomass Research and Development
print, audiotape, or compact disc) by Department published in the Federal Technical Advisory Committee
contacting the person listed under FOR Register by using the article search
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Renewable Energy, Department of
Electronic Access to This Document: Specifically, through the advanced
Energy.
The official version of this document is search feature at this site, you can limit
the document published in the Federal your search to documents published by ACTION: Notice of open meeting.
Register. You may access the official the Department.
edition of the Federal Register and the Program Authority: 20 U.S.C. 1087, et seq. SUMMARY: This notice announces an
Code of Federal Regulations via the open meeting of the Biomass Research
Federal Digital System at: www.gpo.gov/ Dated: October 22, 2018. and Development Technical Advisory
fdsys. At this site you can view this James F. Manning, Committee under Section 9008(d) of the
document, as well as all other Acting Chief Operating Officer, Federal Food, Conservation, and Energy Act of
documents of this Department Student Aid. 2008, amended by the Agricultural Act
published in the Federal Register, in [FR Doc. 2018–23372 Filed 10–24–18; 8:45 am] of 2014. The Federal Advisory
daltland on DSKBBV9HB2PROD with NOTICES
text or Portable Document Format BILLING CODE 4000–01–P Committee Act requires that agencies
(PDF). To use PDF you must have publish these notices in the Federal
Register.
2 Effective for loan periods beginning on or after
July 1, 2012, graduate and professional students are DATES: November 15, 2018, 8:30 a.m.–
no longer eligible to receive Direct Subsidized 5:30 p.m.; November 16, 2018, 8:00
Loans. a.m.–12:30 p.m.
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Document Created: 2018-10-25 01:46:03
Document Modified: 2018-10-25 01:46:03
| 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 53864 |
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