William D. Ford Federal Direct Loan Program, 67999-68002 [05-22366]

Download as PDF Federal Register / Vol. 70, No. 216 / Wednesday, November 9, 2005 / Notices the interest rates on the loans consolidated, rounded to the nearest whole percent, but may not be less than nine percent. 2. FFEL Consolidation loans for which the consolidation loan was made by the lender on or after July 1, 1994, and before November 13, 1997—the interest rate is the weighted average of the interest rates on the loans consolidated, rounded to the nearest whole percent. 3. FFEL Consolidation loans for which the consolidation loan application was received by the lender on or after November 13, 1997, and before October 1, 1998—the interest rate may not exceed 8.25 percent: The interest rate for the period from July 1, 2005, through June 30, 2006, is 6.10 percent (3.00 percent plus 3.1 percent). 4. FFEL Consolidation loans for which the consolidation loan application was received by the lender on or after October 1, 1998, and before July 1, 2006—the interest rate may not exceed 8.25 percent: The interest rate is the weighted average of the interest rates on the loans consolidated, rounded to the nearest higher 1⁄8 of one percent. 5. If a portion of a Consolidation loan is attributable to a loan made under subpart I of part A of title VII of the Public Health Service Act, the maximum interest rate for that portion of a Consolidation loan is determined annually, for each 12-month period beginning on July 1 and ending on June 30. The interest rate equals the average of the bond equivalent rates of the 91day Treasury bills auctioned for the quarter ending prior to July 1, plus three percent. For the quarter ending before July 1, 2005, the average 91-day Treasury bill rate was 2.943 percent (rounded to 2.94 percent). The maximum interest rate for the period from July 1, 2005, through June 30, 2006, is 5.94 percent (2.94 percent plus 3.0 percent). Electronic Access to This Document: You may 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) on the Internet at the following site: https://www.ed.gov/news/ federegister. To use PDF you must have Adobe Acrobat Reader, which is available free at this site. If you have questions about using PDF, call the U.S. Government Printing Office (GPO), toll free at 1–888– 293–6498; or in the Washington, DC area at (202) 512–1530. Note: The official version of this document is the document published in the Federal Register. Free Internet access to the official VerDate jul<14>2003 16:18 Nov 08, 2005 Jkt 208001 edition of the Federal Register and the Code of Federal Regulations is available on GPO Access at: https://www.gpoaccess.gov/nara/ index.html Program Authority: 20 U.S.C. 1087 et seq. Dated: November 3, 2005. Theresa S. Shaw, Chief Operating Officer, Federal Student Aid. [FR Doc. 05–22365 Filed 11–8–05; 8:45 am] BILLING CODE 4000–01–P DEPARTMENT OF EDUCATION William D. Ford Federal Direct Loan Program Federal Student Aid, Department of Education. ACTION: Notice of interest rates for the William D. Ford Federal Direct Loan Program for the period July 1, 2005 through June 30, 2006. AGENCY: SUMMARY: The Chief Operating Officer for Federal Student Aid announces the interest rates for loans made under the William D. Ford Federal Direct Loan (Direct Loan) Program for the period July 1, 2005 through June 30, 2006. FOR FURTHER INFORMATION CONTACT: Don Watson, U.S. Department of Education, room 114I2, UCP, 400 Maryland Avenue, SW., Washington, DC 20202– 5400. Telephone: (202) 377–4008. If you use a telecommunications device for the deaf (TDD), you may call the Federal Relay Service (FRS) at 1– 800–877–8339. Individuals with disabilities may obtain this document in an alternative format (e.g., Braille, large print, audiotape, or computer diskette) 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 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). The Direct Loan Program includes loans with variable interest rates and loans with fixed interest rates. Most loans made under the Direct Loan Program have variable interest rates that change each year. The variable interest rate formula that applies to a particular loan depends on the date of the first PO 00000 Frm 00014 Fmt 4703 Sfmt 4703 67999 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. 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 based on the weighted average of the loans that are consolidated, rounded up to the nearest higher 1/8 of one percent. Pursuant to section 455(b) of the HEA, 20 U.S.C. § 1087e(b), the Direct Loan interest rate formulas use the bond equivalent rates of the 91-day Treasury bills at the final auction held before June 1 of each year plus a statutory addon percentage to determine the variable interest rate for 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. The bond equivalent rate of the 91day Treasury bills auctioned on May 31, 2005, which is used to calculate the interest rates on these loans, is 2.998 percent, which is rounded to 3.00 percent. In addition, pursuant to section 455(b) of the HEA, 20 U.S.C. 1087e(b), as amended by Public Law 106–554, the Consolidated Appropriations Act 2001, the interest rate for Direct PLUS Loans that were disbursed on or after July 1, 1994 and on or before July 1, 1998, is calculated based on the weekly average of a 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 June 26 plus a statutory add-on percentage. The last calendar week ending on or before June 26, 2005 began on June 19, 2005 and ended on June 25, 2005. On June 27, 2005, the Board of Governors of the Federal Reserve System published the 1-year constant maturity Treasury yield average as 3.40 percent. Below is specific information on the calculation of the interest rates for the Direct Loan Program. This information is listed in order by the date a loan was first disbursed or by the date that the Consolidation Application was received. In addition, a summary of the interest rates that are effective for the period July 1, 2005 through June 30, 2006, is included on charts at the end of this notice. These charts are organized by E:\FR\FM\09NON1.SGM pfrm13 PsN: 09NON1 68000 Federal Register / Vol. 70, No. 216 / Wednesday, November 9, 2005 / Notices loan type. In each chart, the interest rates are arranged by the date a loan was first disbursed or by the date that the consolidation application was received. For Direct Loan Program Loans First Disbursed on or After July 1, 1994, and Before July 1, 1995— The interest rate for Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct Subsidized and Unsubsidized Consolidation Loans is the bond equivalent rate of the 91-day Treasury bills auctioned at the final auction held before June 1 plus 3.1 percent. These interest rates may not exceed 8.25 percent during any period. From July 1, 2005, to June 30, 2006, the interest rate for Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct Subsidized and Unsubsidized Consolidation Loans that were first disbursed on or after July 1, 1994, and before July 1, 1995, is 6.1 percent during all periods. The interest rate for Direct PLUS Loans and Direct PLUS Consolidation Loans is the weekly average of a 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 June 26 plus 3.1 percent. These interest rates may not exceed 9.0 percent during any period. From July 1, 2005, to June 30, 2006, the interest rate for Direct PLUS Loans and Direct PLUS Consolidation Loans that were first disbursed on or after July 1, 1994 and before July 1, 1995, is 6.50 percent for all periods. For Direct Loan Program Loans First Disbursed on or After July 1, 1995, and Before July 1, 1998— The interest rate for Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct Subsidized and Unsubsidized Consolidation Loans is the bond equivalent rate of the 91-day Treasury bills auctioned at the final auction held before June 1 plus 3.1 percent. However, during in-school, grace, and deferment periods, the interest rate formula is the bond equivalent rate of the 91-day Treasury bills auctioned at the final auction held before June 1 plus 2.5 percent. These interest rates may not exceed 8.25 percent during any period. From July 1, 2005, to June 30, 2006, the interest rate for Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct Subsidized and Unsubsidized Consolidation Loans that were first disbursed on or after July 1, 1995, and before July 1, 1998, is 5.50 percent during in-school, grace, and deferment periods and 6.10 percent during all other periods. VerDate jul<14>2003 16:18 Nov 08, 2005 Jkt 208001 The interest rate for Direct PLUS Loans and Direct PLUS Consolidation Loans is the weekly average of a 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 June 26 plus 3.1 percent. These interest rates may not exceed 9.0 percent during any period. From July 1, 2005, to June 30, 2006, the interest rate for Direct PLUS Loans and Direct PLUS Consolidation Loans that were first disbursed on or after July 1, 1995 and before July 1, 1998, is 6.50 percent during all periods. For Direct Loans First Disbursed On or After July 1, 1998, and Before October 1, 1998— The interest rate for Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct Subsidized and Unsubsidized Consolidation Loans is the bond equivalent rate of the 91-day Treasury bills auctioned at the final auction held before June 1 plus 2.3 percent. However, during in-school, grace, and deferment periods, the interest rate formula is the bond equivalent rate of the 91-day Treasury bills auctioned at the final auction held before June 1 plus 1.7 percent. These interest rates may not exceed 8.25 percent during any period. From July 1, 2005, to June 30, 2006, the interest rate for Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct Subsidized and Unsubsidized Consolidation Loans that were first disbursed on or after July 1, 1998 and before October 1, 1998, is 4.70 percent during in-school, grace, and deferment periods and 5.30 percent during all other periods. The interest rate for Direct PLUS Loans and Direct PLUS Consolidation Loans is the bond equivalent rate of the 91-day Treasury bills auctioned at the final auction held before June 1 plus 3.1 percent. These interest rates may not exceed 9.0 percent during any period. From July 1, 2005, to June 30, 2006, the interest rate for Direct PLUS Loans and Direct PLUS Consolidation Loans that were disbursed on or after July 1, 1998, and before October 1, 1998, is 6.10 percent during all periods. For Direct Subsidized Loans, Direct Unsubsidized Loans, Direct PLUS Loans First Disbursed On or After October 1, 1998, and Before July 1, 2006— The interest rate for Direct Subsidized Loans and Direct Unsubsidized Loans is the bond equivalent rate of the 91-day Treasury bills auctioned at the final auction held before June 1 plus 2.3 percent. However, during in-school, grace, and deferment periods, the PO 00000 Frm 00015 Fmt 4703 Sfmt 4703 interest rate formula is the bond equivalent rate of the 91-day Treasury bills plus 1.7 percent. These interest rates may not exceed 8.25 percent during any period. From July 1, 2005, to June 30, 2006, the interest rate for Direct Subsidized Loans and Direct Unsubsidized Loans that were disbursed after July 1, 1998, and before July 1, 2005, is 4.70 percent during in-school, grace, and deferment periods and 5.30 percent during all other periods. The interest rate for Direct PLUS Loans is the bond equivalent rate of the 91-day Treasury bills auctioned at the final auction held before June 1 plus 3.1 percent. These interest rates may not exceed 9.0 percent during any period. From July 1, 2005, to June 30, 2006, the interest rate for Direct PLUS Loans that were disbursed after July 1, 1998, and before July 1, 2006, is 6.10 percent during all periods. For Direct Consolidation Loans First Disbursed On or After October 1, 1998 and for Which the Application Was Received Before October 1, 1998— The interest rate for Direct Subsidized and Unsubsidized Consolidation Loans is the bond equivalent rate of the 91-day Treasury bills auctioned at the final auction held before June 1 plus 2.3 percent. However, during in-school, grace, and deferment periods, the interest rate formula is the bond equivalent rate of the 91-day Treasury bills auctioned at the final auction held before June 1 plus 1.7 percent. These interest rates may not exceed 8.25 percent during any period. From July 1, 2005, to June 30, 2006, the interest rate for Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct Subsidized and Unsubsidized Consolidation Loans that were first disbursed on or after July 1, 1998 and before October 1, 1998, is 4.70 percent during in-school, grace, and deferment periods and 5.30 percent during all other periods. The interest rate for Direct PLUS Consolidation Loans is the bond equivalent rate of the 91-day Treasury bills auctioned at the final auction held before June 1 plus 3.1 percent. These interest rates may not exceed 9.0 percent during any period. From July 1, 2005, to June 30, 2006, the interest rate for Direct PLUS Loans and Direct PLUS Consolidation Loans that were disbursed on or after July 1, 1998, and before October 1, 1998, is 6.10 percent during all periods. E:\FR\FM\09NON1.SGM pfrm13 PsN: 09NON1 Federal Register / Vol. 70, No. 216 / Wednesday, November 9, 2005 / Notices For Direct Consolidation Loans for Which the Application Was Received on or After October 1, 1998, and Before February 1, 1999— The interest rate for Direct Consolidation Loans for which the application was received on or after October 1, 1998 and before February 1, 1999 is the bond equivalent rate of the 91-day Treasury bills auctioned at the final auction held before June 1 plus 2.3 percent. These interest rates may not exceed 8.25 percent during any period. From July 1, 2005, to June 30, 2006, the interest rate for Direct Consolidation Loans for which the application was received on or after October 1, 1998 and before February 1, 1999, is 5.30 percent during all periods. For Direct Consolidation Loans for Which the Application Was Received On or After February 1, 1999, and Before July 1, 2006— The interest rate for Direct Consolidation Loans for which the application was received on or after February 1, 1999, and before July 1, 2006, is the lesser of 8.25 percent, or the weighted average of the loans consolidated, rounded to the nearest higher 1/8 of one percent. Electronic Access to This Document: You may 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) on the Internet at the following site: http:www.ed.gov/news/ federegister. To use PDF you must have Adobe Acrobat Reader, which is available free at this site. If you have questions about using PDF, call the U.S. Government Printing Office (GPO), toll free at 1–888– 293–6498; or in the Washington, DC, area at (202) 512–1530. Note: 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 on GPO Access at: http:www.gpoaccess.gov/nara/ index.html Program Authority: 20 U.S.C. 1087 et seq. Dated: November 3, 2005. Theresa S. Shaw, Chief Operating Officer, Federal Student Aid. Treasury instrument Status 68001 Interest rate for 7/1/2004 through 6/30/2005 Add-on Maximum interest rate Federal Direct Subsidized Loans and Federal Direct Unsubsidized Loans Loans with first disbursement date between 7/1/1994 and 6/ 30/1995: Any status. Loans with first disbursement date between 7/1/1995 and 6/ 30/1998: Repayment or forbearance ................................................. 91-day T-bill 3.00 In-school, grace, or deferment ............................................ = 6.10 8.25 + 3.1 = 6.10 8.25 + 2.5 = 5.50 8.25 91-day T-bill 3.00 91-day T-bill 3.00 Loans with first disbursement date on or after 7/1/1998: Repayment or forbearance ................................................. 3.1 91-day T-bill 3.00 91-day T-bill 3.00 In-school, grace, or deferment ............................................ + + 2.3 = 5.30 8.25 + 1.7 = 4.70 8.25 Federal Direct Subsidized Consolidation Loans and Federal Direct Unsubsidized Consolidation Loans Loans with first disbursement date between 7/1/1994 and 6/ 30/1995: Any status. Loans with first disbursement date between 7/1/1995 and 6/ 30/1998: Repayment or forbearance ................................................. 91-day T-bill 3.00 Loans with first disbursement date between 7/1/1998 and 9/ 30/1998 and loans with first disbursement date on or after 10/1/1998 for which the application was received before 10/ 1/1998: Repayment or forbearance ................................................. In-school, grace, or deferment ............................................ Loans for which the application was received between 10/01/ 1998 and 1/31/1999: Any status. Loans for the application was received on or after 2/01/1999: Any status. 3.1 = 6.10 8.25 91-day T-bill 3.00 91-day T-bill 3.00 In-school, grace, or deferment ............................................ + + 3.1 = 6.10 8.25 + 2.5 = 5.50 8.25 91-day T-bill + 2.3 = 5.30 3.00 91-day T-bill + 1.7 = 4.70 3.00 91-day T-bill + 2.3 = 5.30 3.00 The lesser of 8.25 percent or the weighted average of the loans application consolidated, rounded to the next higher 1/8 of one percent. 8.25 8.25 8.25 8.25 Federal Direct PLUS Loans Loans with first disbursement date before 7/1/1998: Any status VerDate jul<14>2003 16:18 Nov 08, 2005 Jkt 208001 PO 00000 Frm 00016 1-year constant maturity Treasury yield 3.40 Fmt 4703 Sfmt 4703 + E:\FR\FM\09NON1.SGM 3.1 pfrm13 = 6.50 PsN: 09NON1 9.00 68002 Federal Register / Vol. 70, No. 216 / Wednesday, November 9, 2005 / Notices Status Treasury instrument Loans with first disbursement date on or after 7/1/1998: Any status. 91-day T-bill 3.00 Interest rate for 7/1/2004 through 6/30/2005 Add-on Maximum interest rate + 3.1 = 6.10 9.00 + 3.1 = 6.50 9.00 + 3.1 = 6.10 9.00 Federal Direct PLUS Consolidation Loans Loans with first disbursement date before 7/1/1998: Any status Loans with first disbursement date between 7/1/1998 and 9/ 30/1998 and loans with first disbursement date on or after 10/1/1998 for which the application was received before 10/ 1/1998: Any status. Loans for which the application was received between 10/01/ 1998 and 1/31/1999: Any status. Loans for which the application was received on or after 2/01/ 1999: Any status. [FR Doc. 05–22366 Filed 11–8–05; 8:45 am] BILLING CODE 4000–01–P DEPARTMENT OF ENERGY Federal Energy Regulatory Commission [Docket No. AD06–2–000] Assessment of Demand Response Resources 1-year constant maturity Treasury yield 3.40 91-day T-bill 3.00 91-day T-bill + 2.3 = 5.30 3.00 The lesser of 8.25 percent or the weighted average of the loans application consolidated, rounded to the next higher was received 1/8 of one percent. Commission’s Web site at https:// www.ferc.gov. Commenters unable to file comments electronically must send an original and 14 copies of their comments to: Federal Energy Regulatory Commission, Office of the Secretary, 888 First Street NE., Washington, DC 20426. Please refer to the Comment Procedures section of the preamble for additional information on how to file comments. FOR FURTHER INFORMATION CONTACT: November 3, 2005. Federal Energy Regulatory Commission, DOE. ACTION: Notice of Proposed Voluntary Survey and Technical Conference. AGENCY: David Kathan (Technical Information), Office of Markets, Tariffs and Rates, Federal Energy Regulatory Commission, 888 First Street, NE., Washington, DC 20426, (202) 502–6404, David.Kathan@ferc.gov. Aileen Roder (Legal Information), Office of the General Counsel, Federal Energy Regulatory Commission, 888 First Street, NE., Washington, DC 20426, (202) 502–6022, Aileen.Roder@ferc.gov. SUMMARY: Pursuant to the Energy Policy Act of 2005 (EPAct 2005) section 1252(e)(3),1 the Federal Energy Regulatory Commission (Commission) is preparing a report, by appropriate region, that assesses demand response resources, including those available from all consumer classes. A voluntary survey and technical conference are proposed to obtain information that will assist in preparing and publishing this report. DATES: (1) Comments on the proposed survey questions should be filed December 5, 2005. (2) Requests to participate in the technical conference are due December 5, 2005. (3) Comments on the proposed technical conference topics are due December 19, 2005. ADDRESSES: Comments may be filed electronically via the eFiling link on the 1. Take notice that a survey on the saturation and penetration of advanced meters is being proposed and that a technical conference, with comments, on issues raised by the Energy Policy Act of 2005 (EPAct 2005) section 1252(e)(3) 2 will be held. Comments on the survey are due by December 5, 2005. The date, location, and agenda of the conference will be announced in a subsequent notice. Those wishing to participate in the technical conference should notify Commission staff by December 5, 2005. Finally, comments on the demand response issues addressed in the statute are due by December 19, 2005. These 1 Energy Policy Act of 2005, Pub. L. 109–58, § 1252(e)(3), 119 Stat. 594, (2005) (EPAct section 1252(e)(3)). 2 Energy Policy Act of 2005, Pub. L. 109–58, § 1252(e)(3), 119 Stat. 594, (2005) (EPAct section 1252(e)(3)). VerDate jul<14>2003 16:18 Nov 08, 2005 Jkt 208001 SUPPLEMENTARY INFORMATION: PO 00000 Frm 00017 Fmt 4703 Sfmt 4703 8.25 8.25 comments will help inform the discussion at the technical conference. I. Background 2. Section 1252(e)(3) of EPAct 2005 requires the Commission to draft and publish a report, by appropriate region, that assesses demand response resources, including those available from all consumer classes. Specifically, EPAct 2005 requires that the Commission identify and review: (A) Saturation and penetration rates of advanced meters and communications technologies, devices and systems; (B) Existing demand response programs and time-based rate programs; (C) The annual resource contribution of demand resources; (D) The potential for demand response as a quantifiable, reliable resource for regional planning purposes; (E) Steps taken to ensure that, in regional transmission planning and operations, demand resources are provided equitable treatment as a quantifiable, reliable resource relative to the resource obligations of any load-serving entity, transmission provider, or transmitting party; and (F) Regulatory barriers to improved customer participation in demand response, peak reduction and critical period pricing programs. 3. A survey is proposed to obtain the needed information on meter saturation and penetration. With respect to the other issues the Commission must address in the report, input from state regulators and members of the industry will enhance its ability to present a comprehensive and well informed E:\FR\FM\09NON1.SGM pfrm13 PsN: 09NON1

Agencies

DEPARTMENT OF EDUCATION

[Federal Register Volume 70, Number 216 (Wednesday, November 9, 2005)]
[Notices]
[Pages 67999-68002]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 05-22366]

-----------------------------------------------------------------------

DEPARTMENT OF EDUCATION

William D. Ford Federal Direct Loan Program

AGENCY: Federal Student Aid, Department of Education.

ACTION: Notice of interest rates for the William D. Ford Federal Direct
Loan Program for the period July 1, 2005 through June 30, 2006.

-----------------------------------------------------------------------

SUMMARY: The Chief Operating Officer for Federal Student Aid announces
the interest rates for loans made under the William D. Ford Federal
Direct Loan (Direct Loan) Program for the period July 1, 2005 through
June 30, 2006.

FOR FURTHER INFORMATION CONTACT: Don Watson, U.S. Department of
Education, room 114I2, UCP, 400 Maryland Avenue, SW., Washington, DC
20202-5400. Telephone: (202) 377-4008.
If you use a telecommunications device for the deaf (TDD), you may
call the Federal Relay Service (FRS) at 1-800-877-8339.
Individuals with disabilities may obtain this document in an
alternative format (e.g., Braille, large print, audiotape, or computer
diskette) 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 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).
The Direct Loan Program includes loans with variable interest rates
and loans with fixed interest rates. Most loans made under the Direct
Loan Program have variable interest rates that change each year. 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.
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 based on the weighted average of the loans that are
consolidated, rounded up to the nearest higher 1/8 of one percent.
Pursuant to section 455(b) of the HEA, 20 U.S.C. Sec. 1087e(b),
the Direct Loan interest rate formulas use the bond equivalent rates of
the 91-day Treasury bills at the final auction held before June 1 of
each year plus a statutory add-on percentage to determine the variable
interest rate for 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.
The bond equivalent rate of the 91-day Treasury bills auctioned on
May 31, 2005, which is used to calculate the interest rates on these
loans, is 2.998 percent, which is rounded to 3.00 percent.
In addition, pursuant to section 455(b) of the HEA, 20 U.S.C.
1087e(b), as amended by Public Law 106-554, the Consolidated
Appropriations Act 2001, the interest rate for Direct PLUS Loans that
were disbursed on or after July 1, 1994 and on or before July 1, 1998,
is calculated based on the weekly average of a 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 June 26
plus a statutory add-on percentage.
The last calendar week ending on or before June 26, 2005 began on
June 19, 2005 and ended on June 25, 2005. On June 27, 2005, the Board
of Governors of the Federal Reserve System published the 1-year
constant maturity Treasury yield average as 3.40 percent.
Below is specific information on the calculation of the interest
rates for the Direct Loan Program. This information is listed in order
by the date a loan was first disbursed or by the date that the
Consolidation Application was received.
In addition, a summary of the interest rates that are effective for
the period July 1, 2005 through June 30, 2006, is included on charts at
the end of this notice. These charts are organized by

[[Page 68000]]

loan type. In each chart, the interest rates are arranged by the date a
loan was first disbursed or by the date that the consolidation
application was received.

For Direct Loan Program Loans First Disbursed on or After July 1, 1994,
and Before July 1, 1995--

The interest rate for Direct Subsidized Loans, Direct Unsubsidized
Loans, and Direct Subsidized and Unsubsidized Consolidation Loans is
the bond equivalent rate of the 91-day Treasury bills auctioned at the
final auction held before June 1 plus 3.1 percent. These interest rates
may not exceed 8.25 percent during any period. From July 1, 2005, to
June 30, 2006, the interest rate for Direct Subsidized Loans, Direct
Unsubsidized Loans, and Direct Subsidized and Unsubsidized
Consolidation Loans that were first disbursed on or after July 1, 1994,
and before July 1, 1995, is 6.1 percent during all periods.
The interest rate for Direct PLUS Loans and Direct PLUS
Consolidation Loans is the weekly average of a 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 June 26
plus 3.1 percent. These interest rates may not exceed 9.0 percent
during any period. From July 1, 2005, to June 30, 2006, the interest
rate for Direct PLUS Loans and Direct PLUS Consolidation Loans that
were first disbursed on or after July 1, 1994 and before July 1, 1995,
is 6.50 percent for all periods.

For Direct Loan Program Loans First Disbursed on or After July 1, 1995,
and Before July 1, 1998--

The interest rate for Direct Subsidized Loans, Direct Unsubsidized
Loans, and Direct Subsidized and Unsubsidized Consolidation Loans is
the bond equivalent rate of the 91-day Treasury bills auctioned at the
final auction held before June 1 plus 3.1 percent. However, during in-
school, grace, and deferment periods, the interest rate formula is the
bond equivalent rate of the 91-day Treasury bills auctioned at the
final auction held before June 1 plus 2.5 percent. These interest rates
may not exceed 8.25 percent during any period. From July 1, 2005, to
June 30, 2006, the interest rate for Direct Subsidized Loans, Direct
Unsubsidized Loans, and Direct Subsidized and Unsubsidized
Consolidation Loans that were first disbursed on or after July 1, 1995,
and before July 1, 1998, is 5.50 percent during in-school, grace, and
deferment periods and 6.10 percent during all other periods.
The interest rate for Direct PLUS Loans and Direct PLUS
Consolidation Loans is the weekly average of a 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 June 26
plus 3.1 percent. These interest rates may not exceed 9.0 percent
during any period. From July 1, 2005, to June 30, 2006, the interest
rate for Direct PLUS Loans and Direct PLUS Consolidation Loans that
were first disbursed on or after July 1, 1995 and before July 1, 1998,
is 6.50 percent during all periods.

For Direct Loans First Disbursed On or After July 1, 1998, and Before
October 1, 1998--

The interest rate for Direct Subsidized Loans, Direct Unsubsidized
Loans, and Direct Subsidized and Unsubsidized Consolidation Loans is
the bond equivalent rate of the 91-day Treasury bills auctioned at the
final auction held before June 1 plus 2.3 percent. However, during in-
school, grace, and deferment periods, the interest rate formula is the
bond equivalent rate of the 91-day Treasury bills auctioned at the
final auction held before June 1 plus 1.7 percent. These interest rates
may not exceed 8.25 percent during any period. From July 1, 2005, to
June 30, 2006, the interest rate for Direct Subsidized Loans, Direct
Unsubsidized Loans, and Direct Subsidized and Unsubsidized
Consolidation Loans that were first disbursed on or after July 1, 1998
and before October 1, 1998, is 4.70 percent during in-school, grace,
and deferment periods and 5.30 percent during all other periods.
The interest rate for Direct PLUS Loans and Direct PLUS
Consolidation Loans is the bond equivalent rate of the 91-day Treasury
bills auctioned at the final auction held before June 1 plus 3.1
percent. These interest rates may not exceed 9.0 percent during any
period. From July 1, 2005, to June 30, 2006, the interest rate for
Direct PLUS Loans and Direct PLUS Consolidation Loans that were
disbursed on or after July 1, 1998, and before October 1, 1998, is 6.10
percent during all periods.

For Direct Subsidized Loans, Direct Unsubsidized Loans, Direct PLUS
Loans First Disbursed On or After October 1, 1998, and Before July 1,
2006--

The interest rate for Direct Subsidized Loans and Direct
Unsubsidized Loans is the bond equivalent rate of the 91-day Treasury
bills auctioned at the final auction held before June 1 plus 2.3
percent. However, during in-school, grace, and deferment periods, the
interest rate formula is the bond equivalent rate of the 91-day
Treasury bills plus 1.7 percent. These interest rates may not exceed
8.25 percent during any period. From July 1, 2005, to June 30, 2006,
the interest rate for Direct Subsidized Loans and Direct Unsubsidized
Loans that were disbursed after July 1, 1998, and before July 1, 2005,
is 4.70 percent during in-school, grace, and deferment periods and 5.30
percent during all other periods.
The interest rate for Direct PLUS Loans is the bond equivalent rate
of the 91-day Treasury bills auctioned at the final auction held before
June 1 plus 3.1 percent. These interest rates may not exceed 9.0
percent during any period. From July 1, 2005, to June 30, 2006, the
interest rate for Direct PLUS Loans that were disbursed after July 1,
1998, and before July 1, 2006, is 6.10 percent during all periods.

For Direct Consolidation Loans First Disbursed On or After October 1,
1998 and for Which the Application Was Received Before October 1,
1998--

The interest rate for Direct Subsidized and Unsubsidized
Consolidation Loans is the bond equivalent rate of the 91-day Treasury
bills auctioned at the final auction held before June 1 plus 2.3
percent. However, during in-school, grace, and deferment periods, the
interest rate formula is the bond equivalent rate of the 91-day
Treasury bills auctioned at the final auction held before June 1 plus
1.7 percent. These interest rates may not exceed 8.25 percent during
any period. From July 1, 2005, to June 30, 2006, the interest rate for
Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct
Subsidized and Unsubsidized Consolidation Loans that were first
disbursed on or after July 1, 1998 and before October 1, 1998, is 4.70
percent during in-school, grace, and deferment periods and 5.30 percent
during all other periods.
The interest rate for Direct PLUS Consolidation Loans is the bond
equivalent rate of the 91-day Treasury bills auctioned at the final
auction held before June 1 plus 3.1 percent. These interest rates may
not exceed 9.0 percent during any period. From July 1, 2005, to June
30, 2006, the interest rate for Direct PLUS Loans and Direct PLUS
Consolidation Loans that were disbursed on or after July 1, 1998, and
before October 1, 1998, is 6.10 percent during all periods.

[[Page 68001]]

For Direct Consolidation Loans for Which the Application Was Received
on or After October 1, 1998, and Before February 1, 1999--

The interest rate for Direct Consolidation Loans for which the
application was received on or after October 1, 1998 and before
February 1, 1999 is the bond equivalent rate of the 91-day Treasury
bills auctioned at the final auction held before June 1 plus 2.3
percent. These interest rates may not exceed 8.25 percent during any
period. From July 1, 2005, to June 30, 2006, the interest rate for
Direct Consolidation Loans for which the application was received on or
after October 1, 1998 and before February 1, 1999, is 5.30 percent
during all periods.

For Direct Consolidation Loans for Which the Application Was Received
On or After February 1, 1999, and Before July 1, 2006--

The interest rate for Direct Consolidation Loans for which the
application was received on or after February 1, 1999, and before July
1, 2006, is the lesser of 8.25 percent, or the weighted average of the
loans consolidated, rounded to the nearest higher 1/8 of one percent.
Electronic Access to This Document: You may 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) on the
Internet at the following site: http:www.ed.gov/news/federegister.
To use PDF you must have Adobe Acrobat Reader, which is available
free at this site. If you have questions about using PDF, call the U.S.
Government Printing Office (GPO), toll free at 1-888-293-6498; or in
the Washington, DC, area at (202) 512-1530.

Note: 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 on GPO Access at: http:www.gpoaccess.gov/
nara/

Program Authority: 20 U.S.C. 1087 et seq.

Dated: November 3, 2005.
Theresa S. Shaw,
Chief Operating Officer, Federal Student Aid.

----------------------------------------------------------------------------------------------------------------
Interest
rate for 7/ Maximum
Status Treasury instrument Add-on 1/2004 interest
through 6/ rate
30/2005
----------------------------------------------------------------------------------------------------------------
Federal Direct Subsidized Loans and Federal Direct Unsubsidized Loans
----------------------------------------------------------------------------------------------------------------
Loans with first disbursement date 91-day T-bill........... + 3.1 = 6.10 8.25
between 7/1/1994 and 6/30/1995: Any 3.00....................
status.
Loans with first disbursement date
between 7/1/1995 and 6/30/1998:
Repayment or forbearance.......... 91-day T-bill........... + 3.1 = 6.10 8.25
3.00....................
In-school, grace, or deferment.... 91-day T-bill........... + 2.5 = 5.50 8.25
3.00....................
Loans with first disbursement date on
or after 7/1/1998:
Repayment or forbearance.......... 91-day T-bill........... + 2.3 = 5.30 8.25
3.00....................
In-school, grace, or deferment.... 91-day T-bill........... + 1.7 = 4.70 8.25
3.00....................
---------------------------------------
Federal Direct Subsidized Consolidation Loans and Federal Direct Unsubsidized Consolidation Loans
----------------------------------------------------------------------------------------------------------------
Loans with first disbursement date 91-day T-bill........... + 3.1 = 6.10 8.25
between 7/1/1994 and 6/30/1995: Any 3.00....................
status.
Loans with first disbursement date
between 7/1/1995 and 6/30/1998:
Repayment or forbearance.......... 91-day T-bill........... + 3.1 = 6.10 8.25
3.00....................
In-school, grace, or deferment.... 91-day T-bill........... + 2.5 = 5.50 8.25
3.00....................
Loans with first disbursement date
between 7/1/1998 and 9/30/1998 and
loans with first disbursement date on
or after 10/1/1998 for which the
application was received before 10/1/
1998:
Repayment or forbearance.......... 91-day T-bill........... + 2.3 = 5.30 8.25
3.00....................
In-school, grace, or deferment.... 91-day T-bill........... + 1.7 = 4.70 8.25
3.00....................
Loans for which the application was 91-day T-bill........... + 2.3 = 5.30 8.25
received between 10/01/1998 and 1/31/ 3.00....................
1999: Any status.
Loans for the application was received The lesser of 8.25 percent or the weighted average of the 8.25
on or after 2/01/1999: Any status. loans application consolidated, rounded to the next
higher 1/8 of one percent.
---------------------------------------
Federal Direct PLUS Loans
----------------------------------------------------------------------------------------------------------------
Loans with first disbursement date 1-year constant maturity + 3.1 = 6.50 9.00
before 7/1/1998: Any status. Treasury yield.
3.40....................

[[Page 68002]]

Loans with first disbursement date on 91-day T-bill........... + 3.1 = 6.10 9.00
or after 7/1/1998: Any status. 3.00....................
---------------------------------------
Federal Direct PLUS Consolidation Loans
----------------------------------------------------------------------------------------------------------------
Loans with first disbursement date 1-year constant maturity + 3.1 = 6.50 9.00
before 7/1/1998: Any status. Treasury yield.
3.40....................
Loans with first disbursement date 91-day T-bill........... + 3.1 = 6.10 9.00
between 7/1/1998 and 9/30/1998 and 3.00....................
loans with first disbursement date on
or after 10/1/1998 for which the
application was received before 10/1/
1998: Any status.
Loans for which the application was 91-day T-bill........... + 2.3 = 5.30 8.25
received between 10/01/1998 and 1/31/ 3.00....................
1999: Any status.
Loans for which the application was The lesser of 8.25 percent or the weighted average of the 8.25
received on or after 2/01/1999: Any loans application consolidated, rounded to the next
status. higher was received 1/8 of one percent.
----------------------------------------------------------------------------------------------------------------

[FR Doc. 05-22366 Filed 11-8-05; 8:45 am]
BILLING CODE 4000-01-P

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.