William D. Ford Federal Direct Loan Program, 36758-36763 [06-5772]

Download as PDF 36758 Federal Register / Vol. 71, No. 124 / Wednesday, June 28, 2006 / Notices from members of the public is to make these submissions available for public viewing on the Internet at http:// www.regulations.gov as they are receive without change, including any personal identifiers or contact information. FOR FURTHER INFORMATION CONTACT: To request more information on this proposed information collection or to obtain a copy of the proposal and associated collection instruments, please write to the Defense Finance and Accounting Service—Cleveland, DFAS– CGA, ATTN: Mr. Charles Moss, 1240 East Ninth Street, Room 2323, Cleveland, OH 44199, or call 216–204– 4426. Title, Associated Form, and OMB Number: Application for Trusteeship; DD Form 2827; OMB License 0730– 0013. Needs and Uses: This form is used to report on the administration of the funds received on behalf of a mentally incompetent member of the uniformed services pursuant to 37 U.S.C. 602–604. Affected Public: Individuals or households. Annual Burden Hours: 18.75 hours. Number of respondents: 75. Responses per Respondent: 1. Average Burden per Response: 15 minutes. Frequency: On occasion. SUPPLEMENTARY INFORMATION: Summary of Information Collection When members of the uniformed services are declared mentally incompetent, the need arises to have a trustee appointed to act on their behalf with regard to military pay matters. Individuals will complete this form to apply for appointment as a trustee on behalf of the member. The requirement to complete this form helps alleviate the opportunity for fraud, waste and abuse of Government funds and member’s benefits. Dated: June 20, 2006. Patricia L. Toppings, Alternate OSD Federal Register Liaison Officer, Department of Defense. [FR Doc. 06–5727 Filed 6–27–06; 8:45am] BILLING CODE 5001–06–M DEPARTMENT OF EDUCATION jlentini on PROD1PC65 with NOTICES Safe and Drug-Free Schools and Communities Advisory Committee Office of Safe and Drug-Free Schools, Department of Education. ACTION: Notice of open meeting. AGENCY: SUMMARY: This notice sets forth the schedule and proposed agenda of an VerDate Aug<31>2005 16:52 Jun 27, 2006 Jkt 208001 upcoming open meeting of The Safe and Drug-Free Schools and Communities Advisory Committee. The notice also describes the functions of the Committee. Notice of this meeting is required by section 10(a)(2) of the Federal Advisory Committee Act and is intended to notify the public of their opportunity to attend. DATES: Monday, July 10, 2006. Time: 2 p.m. Eastern Time. ADDRESSES: The Committee will meet by telephone conference call. FOR FURTHER INFORMATION CONTACT: Phyllis Scattergood, Designated Federal Officer: The Safe and Drug-Free Schools and Communities Advisory Committee, Room 3E212, 400 Maryland Avenue, SW., Washington, DC 20202; telephone: (202) 260–0504; e-mail: OSDFSC@ed.gov. The Committee was established to provide advice to the Secretary on Federal, state and local programs designed to create safe and drug-free schools, and on issues related to crisis planning. The agenda for the July 10th meeting will include activities designed to prepare for an August 21–22, 2006 hearing to be conducted by the Advisory Committee. The activities will include developing an agenda for that hearing, as well as identifying possible participants. The August hearing will focus on issues related to the Safe and Drug-Free Schools and Communities Act State Grants program, as well the collection and use of data to effectively manage youth drug and violence prevention programs. The Safe and Drug-Free Schools and Communities Advisory Committee is giving less than 15 days notice due to scheduling difficulties. There will not be an opportunity for public comment during this meeting; however, the public may listen to the conference call by calling 866–215– 1938, Chairperson: Deborah Price. Individuals who will need accommodations for a disability in order to listen to the meeting may access a TDD line by calling 800–877–8973, Chairperson: Deborah Price. Request for Written Comments: We invite the public to submit written comments relevant to the overall focus and deliberations of the Advisory Committee. We would like to receive written comments from members of the public no later than April 30, 2007. ADDRESSES: Submit all comments to the Advisory Committee using one of the following methods: 1. Internet. We encourage the public to submit comments through the Internet to the following address: OSDFSC@ed.gov. 2. Mail. The public may also submit your comments via mail to Phyllis Scattergood, Office of Safe and Drug Free Schools, U.S. Department of Education, 400 Maryland Avenue, SW., Room 3E212, Washington, DC 20202. Due to delays in mail delivery caused by heightened security, please allow adequate time for the mail to be received. Records are kept of all Committee proceedings and are available for public inspection at the staff office for the Committee from the hours of 9 a.m. to 5 p.m. Dated: June 23, 2006. Raymond Simon, Deputy Secretary, U.S. Department of Education. [FR Doc. 06–5759 Filed 6–27–06; 8:45 am] BILLING CODE 4000–01–M SUPPLEMENTARY INFORMATION: PO 00000 Frm 00006 Fmt 4703 Sfmt 4703 DEPARTMENT OF EDUCATION William D. Ford Federal Direct Loan Program Federal Student Aid, Department of Education. ACTION: Notice of the annual updates to the Income Contingent Repayment (ICR) plan formula for 2006. AGENCY: SUMMARY: The Secretary announces the annual updates to the ICR plan formula for 2006. Under the William D. Ford Federal Direct Loan (Direct Loan) Program, borrowers may choose to repay their student loans (Direct Subsidized Loan, Direct Unsubsidized Loan, and Direct Consolidation Loan) under the ICR plan, which bases the repayment amount on the borrower’s income, family size, loan amount, and interest rate. Each year, we adjust the formula for calculating a borrower’s payment to reflect changes due to inflation. This notice contains the adjusted income percentage factors for 2006 and charts showing sample repayment amounts based on the adjusted ICR plan formula. It also contains examples of how the calculation of the monthly ICR amount is performed and a constant multiplier chart for use in performing the calculations. The adjustments for the ICR plan formula contained in this notice are effective from July 1, 2006 to June 30, 2007. 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. E:\FR\FM\28JNN1.SGM 28JNN1 Federal Register / Vol. 71, No. 124 / Wednesday, June 28, 2006 / Notices 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. Direct Loan Program borrowers may choose to repay their Direct Subsidized Loan, Direct Unsubsidized Loan, and Direct Consolidation Loan under the ICR plan. The attachment to this notice provides updates to examples of how the calculation of the monthly ICR amount is performed, the income percentage factors, the constant multiplier chart, and charts showing sample repayment amounts. We have updated the income percentage factors to reflect changes based on inflation. We have revised the table of income percentage factors by changing the dollar amounts of the incomes shown by a percentage equal to the estimated percentage change in the Consumer Price Index for all urban consumers from December 2005 to December 2006. Further, we provide examples of monthly repayment amount calculations and two charts that show sample repayment amounts for single and married or head-of-household borrowers at various income and debt levels based on the updated income percentage factors. The updated income percentage factors, at any given income, may cause a borrower’s payments to be slightly lower than they were in prior years. This updated amount more accurately reflects the impact of inflation on a borrower’s current ability to repay. SUPPLEMENTARY INFORMATION: Electronic Access to This Document jlentini on PROD1PC65 with NOTICES You may review 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. VerDate Aug<31>2005 16:52 Jun 27, 2006 Jkt 208001 Dated: June 23, 2006. Theresa S. Shaw, Chief Operating Officer, Federal Student Aid. Attachment—Examples of the Calculations of Monthly Repayment Amounts Example 1. This example assumes you are a single borrower with $15,000 in Direct Loans, the interest rate being charged is 6.80 percent, and you have an adjusted gross income (AGI) of $35,260. (The 6.80 percent interest rate used in this example is a fixed interest rate that is charged on all Direct Loans, excluding Direct PLUS Loans and certain Direct PLUS Consolidation Loans, disbursed on or after July 1, 2006; your actual interest rate may be less than or greater than 6.80 percent.) Step 1: Determine your annual payments based on what you would pay over 12 years using standard amortization. To do this, multiply your loan balance by the constant multiplier for 6.80 percent interest (0.122130). The constant multiplier is a factor used to calculate amortized payments at a given interest rate over a fixed period of time. You can view the constant multiplier chart at the end of this notice to determine the constant multiplier that you should use for the interest rate on your loan. If your exact interest rate is not listed, use the next highest rate for estimation purposes. • 0.122130 × $15,000 = $1,831.95. Step 2: Multiply the result of Step 1 by the income percentage factor shown in the income percentage factors table that corresponds to your income and then divide the result by 100 (if your income is not listed in the income percentage factors table, calculate the applicable income percentage factor by following the instructions under the ‘‘Interpolation’’ heading later in this notice): • 88.77 × $1,831.95 ÷ 100 = $1,626.22. Step 3: Determine 20 percent of your discretionary income (your discretionary income is your AGI minus the U.S. Department of Health and Human Services (HHS) Poverty Guideline amount for your family size). Because you are a single borrower, subtract the poverty level for a family of one, as published in the Federal Register on January 24, 2006 (71 FR 3848), from your AGI and multiply the result by 20 percent: • $35,260 ¥ $9,800 = $25,460. • $25,460 × 0.20 = $5,092.00. Step 4: Compare the amount from Step 2 with the amount from Step 3. The lower of the two will be your annual payment amount. In this PO 00000 Frm 00007 Fmt 4703 Sfmt 4703 36759 example, you will be paying the amount calculated under Step 2. To determine your monthly repayment amount, divide the annual amount by 12. • $1,626.22 ÷ 12 = $135.52. Example 2. In this example, you are married. You and your spouse have a combined AGI of $66,631 and are repaying your loans jointly under the ICR plan. You have no children. You have a Direct Loan balance of $10,000, and your spouse has a Direct Loan balance of $15,000. Your interest rate is 6.80 percent. (The 6.80 percent interest rate used in this example is a fixed interest rate that is charged on all Direct Loans, excluding Direct PLUS Loans and certain Direct PLUS Consolidation Loans, disbursed on or after July 1, 2006; your actual interest rate may be less than or greater than 6.80 percent.) Step 1: Add your and your spouse’s Direct Loan balances together to determine your aggregate loan balance: • $10,000 + $15,000 = $25,000. Step 2: Determine the annual payment based on what you would pay over 12 years using standard amortization. To do this, multiply your loan balance by the constant multiplier for 6.80 percent interest (0.122130). You can view the constant multiplier chart at the end of this notice to determine the constant multiplier that you should use for the interest rate on your loan. If your exact interest rate is not listed, use the next highest rate for estimation purposes. • 0.122130 × $25,000 = $3,053.25. Step 3: Multiply the result of Step 2 by the income percentage factor shown in the income percentage factors table that corresponds to your and your spouse’s income and then divide the result by 100 (if your and your spouse’s aggregate income is not listed in the income percentage factors table, calculate the applicable income percentage factor by following the instructions under the ‘‘Interpolation’’ heading later in this notice): • 109.40 × $3,053.25 ÷ 100 = $3,340.26. Step 4: Determine 20 percent of your discretionary income. To do this, subtract the poverty level for a family of two, as published in the Federal Register on January 24, 2006 (71 FR 3848), from your combined AGI and multiply the result by 20 percent: • $66,631 ¥ $13,200 = $53,431.00. • $53,431.00 × 0.20 = $10,686.20. Step 5: Compare the amount from Step 3 with the amount from Step 4. The lower of the two will be your annual payment amount. You and your spouse will pay the amount calculated under Step 3. To determine your E:\FR\FM\28JNN1.SGM 28JNN1 36760 Federal Register / Vol. 71, No. 124 / Wednesday, June 28, 2006 / Notices jlentini on PROD1PC65 with NOTICES monthly repayment amount, divide the annual amount by 12. • $3,340.26 ÷ 12 = $278.36. Example 3. This example assumes you are a single borrower with $15,000 in Direct Loans, the interest rate being charged is 8.25 percent, and you have an adjusted gross income (AGI) of $28,071. (The 8.25 percent interest rate used in this example is the maximum interest rate that may be charged for all Direct Loans excluding Direct PLUS Loans and certain Direct PLUS Consolidation Loans that were disbursed before July 1, 2006; your actual interest rate may be lower.) Step 1: Determine your annual payments based on what you would pay over 12 years using standard amortization. To do this, multiply your loan balance by the constant multiplier for 8.25 percent interest (0.131545). The constant multiplier is a factor used to calculate amortized payments at a given interest rate over a fixed period of time. You can view the constant multiplier chart at the end of this notice to determine the constant multiplier that you should use for the interest rate on your loan. If your exact interest rate is not listed, use the next highest rate for estimation purposes. • 0.131545 × $15,000 = $1,973.18. Step 2: Multiply the result of Step 1 by the income percentage factor shown in the income percentage factors table that corresponds to your income and then divide the result by 100 (if your income is not listed in the income percentage factors table, calculate the applicable income percentage factor by following the instructions under the ‘‘Interpolation’’ heading later in this notice): • 80.33 × $1,973.18 ÷ 100 = $1,585.06. Step 3: Determine 20 percent of your discretionary income (your discretionary income is your AGI minus the HHS Poverty Guideline amount for your family size). Because you are a single borrower, subtract the poverty level for a family of one, as published in the Federal Register on January 24, 2006 (71 FR 3848), from your AGI and multiply the result by 20 percent: • $28,071 ¥ $9,800 = $18,271. • $18,271 × 0.20 = $3,654.20. Step 4: Compare the amount from Step 2 with the amount from Step 3. The lower of the two will be your VerDate Aug<31>2005 16:52 Jun 27, 2006 Jkt 208001 annual payment amount. In this example, you will be paying the amount calculated under Step 2. To determine your monthly repayment amount, divide the annual amount by 12. • $1,585.06 ÷ 12 = $132.09. Example 4. In this example, you are married. You and your spouse have a combined AGI of $53,185 and are repaying your loans jointly under the ICR plan. You have no children. You have a Direct Loan balance of $10,000, and your spouse has a Direct Loan balance of $15,000. Your interest rate is 8.25 percent. (The 8.25 percent interest rate used in this example is the maximum interest rate that may be charged for all Direct Loans excluding Direct PLUS Loans and certain Direct PLUS Consolidation Loans that were disbursed before July 1, 2006; your actual interest rate may be lower.) Step 1: Add your and your spouse’s Direct Loan balances together to determine your aggregate loan balance: • $10,000 + $15,000 = $25,000. Step 2: Determine the annual payment based on what you would pay over 12 years using standard amortization. To do this, multiply your aggregate loan balance by the constant multiplier for 8.25 percent interest (0.131545). You can view the constant multiplier chart at the end of this notice to determine the constant multiplier that you should use for the interest rate on your loan. If your exact interest rate is not listed, use the next highest rate for estimation purposes. • 0.131545 × $25,000 = $3,288.63. Step 3: Multiply the result of Step 2 by the income percentage factor shown in the income percentage factors table that corresponds to your and your spouse’s income and then divide the result by 100 (if your and your spouse’s aggregate income is not listed in the income percentage factors table, calculate the applicable income percentage factor by following the instructions under the ‘‘Interpolation’’ heading later in this notice): • 100.00 × $3,288.63 ÷ 100 = $3,288.63. Step 4: Determine 20 percent of your discretionary income. To do this, subtract the poverty level for a family of two, as published in the Federal Register on January 24, 2006 (71 FR 3848), from your combined AGI and multiply the result by 20 percent: PO 00000 Frm 00008 Fmt 4703 Sfmt 4703 • $53,185 ¥ $13,200 = $39,985. • $39,985 × 0.20 = $7,997. Step 5: Compare the amount from Step 3 with the amount from Step 4. The lower of the two will be your annual payment amount. You and your spouse will pay the amount calculated under Step 3. To determine your monthly repayment amount, divide the annual amount by 12. • $3,288.63 ÷ 12 = $274.05. Interpolation: If your income does not appear on the income percentage factor table, you will have to calculate the income percentage factor through interpolation. For example, assume you are single and your income is $30,000. Step 1: Find the closest income listed that is less than your income of $30,000 and the closest income listed that is greater than your income of $30,000. Step 2: Subtract the lower amount from the higher amount (for this discussion, we will call the result the ‘‘income interval’’): • $35,260 ¥ $28,071 = $7,189. Step 3: Determine the difference between the two income percentage factors that are given for these incomes (for this discussion, we will call the result the ‘‘income percentage factor interval’’): • 88.77% ¥ 80.33% = 8.44%. Step 4: Subtract from your income the closest income shown on the chart that is less than your income of $30,000: • $30,000 ¥ $28,071 = $1,929. Step 5: Divide the result of Step 4 by the income interval determined in Step 2: • $1,929 ÷ $7,189 = 0.2683. Step 6: Multiply the result of Step 5 by the income percentage factor interval: • 8.44% × 0.2683 = 2.2645%. Step 7: Add the result of Step 6 to the lower of the two income percentage factors used in Step 3 to calculate the income percentage factor interval for $30,000 in income: • 2.2645% + 80.33% = 82.59% (rounded to the nearest hundredth). The result is the income percentage factor that will be used to calculate the monthly repayment amount under the ICR plan. E:\FR\FM\28JNN1.SGM 28JNN1 Federal Register / Vol. 71, No. 124 / Wednesday, June 28, 2006 / Notices 36761 INCOME PERCENTAGE FACTORS FOR 2006 [Based on annual income] Single Married/head of household Factor (percent) Income 9,218 ............................................................................. 12,683 ........................................................................... 16,320 ........................................................................... 20,040 ........................................................................... 23,592 ........................................................................... 28,071 ........................................................................... 35,260 ........................................................................... 44,221 ........................................................................... 53,185 ........................................................................... 63,922 ........................................................................... 81,849 ........................................................................... 115,925 ......................................................................... 132,919 ......................................................................... 236,752 ......................................................................... 55.00 57.79 60.57 66.23 71.89 80.33 88.77 100.00 100.00 111.80 123.50 141.20 150.00 200.00 Factor (percent) Income 9,218 ............................................................................ 14,544 .......................................................................... 17,333 .......................................................................... 22,659 .......................................................................... 28,071 .......................................................................... 35,260 .......................................................................... 44,220 .......................................................................... 53,185 .......................................................................... 66,631 .......................................................................... 89,035 .......................................................................... 120,404 ........................................................................ 168,391 ........................................................................ 275,163 ........................................................................ 50.52 56.68 59.56 67.79 75.22 87.61 100.00 100.00 109.40 125.00 140.60 150.00 200.00 CONSTANT MULTIPLIER CHART FOR 12- CONSTANT MULTIPLIER CHART FOR 12- CONSTANT MULTIPLIER CHART FOR 12YEAR AMORTIZATION YEAR AMORTIZATION—Continued YEAR AMORTIZATION—Continued Interest rate (percent) jlentini on PROD1PC65 with NOTICES 3.500 4.000 4.500 5.000 Annual constant multiplier ................................. ................................. ................................. ................................. VerDate Aug<31>2005 16:52 Jun 27, 2006 0.102174 0.105063 0.108001 0.110987 Jkt 208001 Interest rate (percent) 5.500 6.000 6.800 7.000 PO 00000 Annual constant multiplier ................................. ................................. ................................. ................................. Frm 00009 Fmt 4703 Sfmt 4703 0.114021 0.117102 0.122130 0.123406 Interest rate (percent) 7.900 ................................. 8.000 ................................. 8.250 ................................. E:\FR\FM\28JNN1.SGM 28JNN1 Annual constant multiplier 0.129237 0.129894 0.131545 VerDate Aug<31>2005 Federal Register / Vol. 71, No. 124 / Wednesday, June 28, 2006 / Notices 16:52 Jun 27, 2006 Jkt 208001 PO 00000 Frm 00010 Fmt 4703 Sfmt 4725 E:\FR\FM\28JNN1.SGM 28JNN1 EN28JN06.006</GPH> jlentini on PROD1PC65 with NOTICES 36762 36763 [FR Doc. 06–5772 Filed 6–27–06; 8:45 am] BILLING CODE 4000–01–C VerDate Aug<31>2005 16:52 Jun 27, 2006 Jkt 208001 PO 00000 Frm 00011 Fmt 4703 Sfmt 4703 E:\FR\FM\28JNN1.SGM 28JNN1 EN28JN06.007</GPH> jlentini on PROD1PC65 with NOTICES Federal Register / Vol. 71, No. 124 / Wednesday, June 28, 2006 / Notices

Agencies

[Federal Register Volume 71, Number 124 (Wednesday, June 28, 2006)]
[Notices]
[Pages 36758-36763]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 06-5772]


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

DEPARTMENT OF EDUCATION


William D. Ford Federal Direct Loan Program

AGENCY: Federal Student Aid, Department of Education.

ACTION: Notice of the annual updates to the Income Contingent Repayment 
(ICR) plan formula for 2006.

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

SUMMARY: The Secretary announces the annual updates to the ICR plan 
formula for 2006. Under the William D. Ford Federal Direct Loan (Direct 
Loan) Program, borrowers may choose to repay their student loans 
(Direct Subsidized Loan, Direct Unsubsidized Loan, and Direct 
Consolidation Loan) under the ICR plan, which bases the repayment 
amount on the borrower's income, family size, loan amount, and interest 
rate. Each year, we adjust the formula for calculating a borrower's 
payment to reflect changes due to inflation. This notice contains the 
adjusted income percentage factors for 2006 and charts showing sample 
repayment amounts based on the adjusted ICR plan formula. It also 
contains examples of how the calculation of the monthly ICR amount is 
performed and a constant multiplier chart for use in performing the 
calculations. The adjustments for the ICR plan formula contained in 
this notice are effective from July 1, 2006 to June 30, 2007.

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.

[[Page 36759]]

    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: Direct Loan Program borrowers may choose to 
repay their Direct Subsidized Loan, Direct Unsubsidized Loan, and 
Direct Consolidation Loan under the ICR plan. The attachment to this 
notice provides updates to examples of how the calculation of the 
monthly ICR amount is performed, the income percentage factors, the 
constant multiplier chart, and charts showing sample repayment amounts.
    We have updated the income percentage factors to reflect changes 
based on inflation. We have revised the table of income percentage 
factors by changing the dollar amounts of the incomes shown by a 
percentage equal to the estimated percentage change in the Consumer 
Price Index for all urban consumers from December 2005 to December 
2006. Further, we provide examples of monthly repayment amount 
calculations and two charts that show sample repayment amounts for 
single and married or head-of-household borrowers at various income and 
debt levels based on the updated income percentage factors.
    The updated income percentage factors, at any given income, may 
cause a borrower's payments to be slightly lower than they were in 
prior years. This updated amount more accurately reflects the impact of 
inflation on a borrower's current ability to repay.

Electronic Access to This Document

    You may review 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: June 23, 2006.
Theresa S. Shaw,
Chief Operating Officer, Federal Student Aid.

Attachment--Examples of the Calculations of Monthly Repayment Amounts

    Example 1. This example assumes you are a single borrower with 
$15,000 in Direct Loans, the interest rate being charged is 6.80 
percent, and you have an adjusted gross income (AGI) of $35,260. (The 
6.80 percent interest rate used in this example is a fixed interest 
rate that is charged on all Direct Loans, excluding Direct PLUS Loans 
and certain Direct PLUS Consolidation Loans, disbursed on or after July 
1, 2006; your actual interest rate may be less than or greater than 
6.80 percent.)
    Step 1: Determine your annual payments based on what you would pay 
over 12 years using standard amortization. To do this, multiply your 
loan balance by the constant multiplier for 6.80 percent interest 
(0.122130). The constant multiplier is a factor used to calculate 
amortized payments at a given interest rate over a fixed period of 
time. You can view the constant multiplier chart at the end of this 
notice to determine the constant multiplier that you should use for the 
interest rate on your loan. If your exact interest rate is not listed, 
use the next highest rate for estimation purposes.

 0.122130 x $15,000 = $1,831.95.

    Step 2: Multiply the result of Step 1 by the income percentage 
factor shown in the income percentage factors table that corresponds to 
your income and then divide the result by 100 (if your income is not 
listed in the income percentage factors table, calculate the applicable 
income percentage factor by following the instructions under the 
``Interpolation'' heading later in this notice):

 88.77 x $1,831.95 / 100 = $1,626.22.

    Step 3: Determine 20 percent of your discretionary income (your 
discretionary income is your AGI minus the U.S. Department of Health 
and Human Services (HHS) Poverty Guideline amount for your family 
size). Because you are a single borrower, subtract the poverty level 
for a family of one, as published in the Federal Register on January 
24, 2006 (71 FR 3848), from your AGI and multiply the result by 20 
percent:

 $35,260 - $9,800 = $25,460.
 $25,460 x 0.20 = $5,092.00.

    Step 4: Compare the amount from Step 2 with the amount from Step 3. 
The lower of the two will be your annual payment amount. In this 
example, you will be paying the amount calculated under Step 2. To 
determine your monthly repayment amount, divide the annual amount by 
12.

 $1,626.22 / 12 = $135.52.

    Example 2. In this example, you are married. You and your spouse 
have a combined AGI of $66,631 and are repaying your loans jointly 
under the ICR plan. You have no children. You have a Direct Loan 
balance of $10,000, and your spouse has a Direct Loan balance of 
$15,000. Your interest rate is 6.80 percent. (The 6.80 percent interest 
rate used in this example is a fixed interest rate that is charged on 
all Direct Loans, excluding Direct PLUS Loans and certain Direct PLUS 
Consolidation Loans, disbursed on or after July 1, 2006; your actual 
interest rate may be less than or greater than 6.80 percent.)
    Step 1: Add your and your spouse's Direct Loan balances together to 
determine your aggregate loan balance:

     $10,000 + $15,000 = $25,000.

    Step 2: Determine the annual payment based on what you would pay 
over 12 years using standard amortization. To do this, multiply your 
loan balance by the constant multiplier for 6.80 percent interest 
(0.122130). You can view the constant multiplier chart at the end of 
this notice to determine the constant multiplier that you should use 
for the interest rate on your loan. If your exact interest rate is not 
listed, use the next highest rate for estimation purposes.

     0.122130 x $25,000 = $3,053.25.

    Step 3: Multiply the result of Step 2 by the income percentage 
factor shown in the income percentage factors table that corresponds to 
your and your spouse's income and then divide the result by 100 (if 
your and your spouse's aggregate income is not listed in the income 
percentage factors table, calculate the applicable income percentage 
factor by following the instructions under the ``Interpolation'' 
heading later in this notice):

 109.40 x $3,053.25 / 100 = $3,340.26.

    Step 4: Determine 20 percent of your discretionary income. To do 
this, subtract the poverty level for a family of two, as published in 
the Federal Register on January 24, 2006 (71 FR 3848), from your 
combined AGI and multiply the result by 20 percent:

 $66,631 - $13,200 = $53,431.00.
 $53,431.00 x 0.20 = $10,686.20.

    Step 5: Compare the amount from Step 3 with the amount from Step 4. 
The lower of the two will be your annual payment amount. You and your 
spouse will pay the amount calculated under Step 3. To determine your

[[Page 36760]]

monthly repayment amount, divide the annual amount by 12.

 $3,340.26 / 12 = $278.36.

    Example 3. This example assumes you are a single borrower with 
$15,000 in Direct Loans, the interest rate being charged is 8.25 
percent, and you have an adjusted gross income (AGI) of $28,071. (The 
8.25 percent interest rate used in this example is the maximum interest 
rate that may be charged for all Direct Loans excluding Direct PLUS 
Loans and certain Direct PLUS Consolidation Loans that were disbursed 
before July 1, 2006; your actual interest rate may be lower.)
    Step 1: Determine your annual payments based on what you would pay 
over 12 years using standard amortization. To do this, multiply your 
loan balance by the constant multiplier for 8.25 percent interest 
(0.131545). The constant multiplier is a factor used to calculate 
amortized payments at a given interest rate over a fixed period of 
time. You can view the constant multiplier chart at the end of this 
notice to determine the constant multiplier that you should use for the 
interest rate on your loan. If your exact interest rate is not listed, 
use the next highest rate for estimation purposes.

 0.131545 x $15,000 = $1,973.18.

    Step 2: Multiply the result of Step 1 by the income percentage 
factor shown in the income percentage factors table that corresponds to 
your income and then divide the result by 100 (if your income is not 
listed in the income percentage factors table, calculate the applicable 
income percentage factor by following the instructions under the 
``Interpolation'' heading later in this notice):

 80.33 x $1,973.18 / 100 = $1,585.06.

    Step 3: Determine 20 percent of your discretionary income (your 
discretionary income is your AGI minus the HHS Poverty Guideline amount 
for your family size). Because you are a single borrower, subtract the 
poverty level for a family of one, as published in the Federal Register 
on January 24, 2006 (71 FR 3848), from your AGI and multiply the result 
by 20 percent:

 $28,071 - $9,800 = $18,271.
 $18,271 x 0.20 = $3,654.20.

    Step 4: Compare the amount from Step 2 with the amount from Step 3. 
The lower of the two will be your annual payment amount. In this 
example, you will be paying the amount calculated under Step 2. To 
determine your monthly repayment amount, divide the annual amount by 
12.

 $1,585.06 / 12 = $132.09.

    Example 4. In this example, you are married. You and your spouse 
have a combined AGI of $53,185 and are repaying your loans jointly 
under the ICR plan. You have no children. You have a Direct Loan 
balance of $10,000, and your spouse has a Direct Loan balance of 
$15,000. Your interest rate is 8.25 percent. (The 8.25 percent interest 
rate used in this example is the maximum interest rate that may be 
charged for all Direct Loans excluding Direct PLUS Loans and certain 
Direct PLUS Consolidation Loans that were disbursed before July 1, 
2006; your actual interest rate may be lower.)
    Step 1: Add your and your spouse's Direct Loan balances together to 
determine your aggregate loan balance:

 $10,000 + $15,000 = $25,000.

    Step 2: Determine the annual payment based on what you would pay 
over 12 years using standard amortization. To do this, multiply your 
aggregate loan balance by the constant multiplier for 8.25 percent 
interest (0.131545). You can view the constant multiplier chart at the 
end of this notice to determine the constant multiplier that you should 
use for the interest rate on your loan. If your exact interest rate is 
not listed, use the next highest rate for estimation purposes.

 0.131545 x $25,000 = $3,288.63.

    Step 3: Multiply the result of Step 2 by the income percentage 
factor shown in the income percentage factors table that corresponds to 
your and your spouse's income and then divide the result by 100 (if 
your and your spouse's aggregate income is not listed in the income 
percentage factors table, calculate the applicable income percentage 
factor by following the instructions under the ``Interpolation'' 
heading later in this notice):

 100.00 x $3,288.63 / 100 = $3,288.63.

    Step 4: Determine 20 percent of your discretionary income. To do 
this, subtract the poverty level for a family of two, as published in 
the Federal Register on January 24, 2006 (71 FR 3848), from your 
combined AGI and multiply the result by 20 percent:

 $53,185 - $13,200 = $39,985.
 $39,985 x 0.20 = $7,997.

    Step 5: Compare the amount from Step 3 with the amount from Step 4. 
The lower of the two will be your annual payment amount. You and your 
spouse will pay the amount calculated under Step 3. To determine your 
monthly repayment amount, divide the annual amount by 12.

 $3,288.63 / 12 = $274.05.

    Interpolation: If your income does not appear on the income 
percentage factor table, you will have to calculate the income 
percentage factor through interpolation. For example, assume you are 
single and your income is $30,000.
    Step 1: Find the closest income listed that is less than your 
income of $30,000 and the closest income listed that is greater than 
your income of $30,000.
    Step 2: Subtract the lower amount from the higher amount (for this 
discussion, we will call the result the ``income interval''):

 $35,260 - $28,071 = $7,189.

    Step 3: Determine the difference between the two income percentage 
factors that are given for these incomes (for this discussion, we will 
call the result the ``income percentage factor interval''):

 88.77% - 80.33% = 8.44%.

    Step 4: Subtract from your income the closest income shown on the 
chart that is less than your income of $30,000:

 $30,000 - $28,071 = $1,929.

    Step 5: Divide the result of Step 4 by the income interval 
determined in Step 2:

 $1,929 / $7,189 = 0.2683.

    Step 6: Multiply the result of Step 5 by the income percentage 
factor interval:

 8.44% x 0.2683 = 2.2645%.

    Step 7: Add the result of Step 6 to the lower of the two income 
percentage factors used in Step 3 to calculate the income percentage 
factor interval for $30,000 in income:

 2.2645% + 80.33% = 82.59% (rounded to the nearest hundredth).

    The result is the income percentage factor that will be used to 
calculate the monthly repayment amount under the ICR plan.

[[Page 36761]]



                                       Income Percentage Factors for 2006
                                            [Based on annual income]
----------------------------------------------------------------------------------------------------------------
                            Single                                          Married/head of household
----------------------------------------------------------------------------------------------------------------
                                                    Factor                                            Factor
                    Income                        (percent)                  Income                  (percent)
----------------------------------------------------------------------------------------------------------------
9,218........................................           55.00   9,218...........................           50.52
12,683.......................................           57.79   14,544..........................           56.68
16,320.......................................           60.57   17,333..........................           59.56
20,040.......................................           66.23   22,659..........................           67.79
23,592.......................................           71.89   28,071..........................           75.22
28,071.......................................           80.33   35,260..........................           87.61
35,260.......................................           88.77   44,220..........................          100.00
44,221.......................................          100.00   53,185..........................          100.00
53,185.......................................          100.00   66,631..........................          109.40
63,922.......................................          111.80   89,035..........................          125.00
81,849.......................................          123.50   120,404.........................          140.60
115,925......................................          141.20   168,391.........................          150.00
132,919......................................          150.00   275,163.........................          200.00
236,752......................................          200.00
----------------------------------------------------------------------------------------------------------------


           Constant Multiplier Chart for 12-Year Amortization
------------------------------------------------------------------------
                                                         Annual constant
                Interest rate (percent)                    multiplier
------------------------------------------------------------------------
3.500.................................................          0.102174
4.000.................................................          0.105063
4.500.................................................          0.108001
5.000.................................................          0.110987
5.500.................................................          0.114021
6.000.................................................          0.117102
6.800.................................................          0.122130
7.000.................................................          0.123406
7.900.................................................          0.129237
8.000.................................................          0.129894
8.250.................................................          0.131545
------------------------------------------------------------------------


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[GRAPHIC] [TIFF OMITTED] TN28JN06.007

[FR Doc. 06-5772 Filed 6-27-06; 8:45 am]
BILLING CODE 4000-01-C