Annual Notice of Interest Rates for Fixed-Rate Federal Student Loans Made Under the William D. Ford Federal Direct Loan Program, 53864-53866 [2018-23372]

Download as PDF 53864 Federal Register / Vol. 83, No. 207 / Thursday, October 25, 2018 / Notices Federal Digital System at: www.gpo.gov/ fdsys. At this site you can view this document, as well as all other documents of this Department published in the Federal Register, in text or Portable Document Format (PDF). To use PDF you must have Adobe Acrobat Reader, which is available free at the site. You may also access documents of the Department published in the Federal Register by using the article search feature at: www.federalregister.gov. Specifically, through the advanced search feature at this site, you can limit your search to documents published by the Department. Program Authority: 20 U.S.C. 1071 et seq. Dated: October 22, 2018. James F. Manning, Acting Chief Operating Officer, Federal Student Aid. [FR Doc. 2018–23371 Filed 10–24–18; 8:45 am] BILLING CODE 4000–01–P DEPARTMENT OF EDUCATION [Docket No.: ED–2018–ICCD–0111] Agency Information Collection Activities; Comment Request; Student Assistance General Provisions—NonTitle IV Revenue Requirements (90/10) Federal Student Aid (FSA), Department of Education (ED). ACTION: Notice. AGENCY: In accordance with the Paperwork Reduction Act of 1995, ED is proposing an extension of an existing information collection. DATES: Interested persons are invited to submit comments on or before December 24, 2018. ADDRESSES: To access and review all the documents related to the information collection listed in this notice, please use https://www.regulations.gov by searching the Docket ID number ED– 2018–ICCD–0111. Comments submitted in response to this notice should be submitted electronically through the Federal eRulemaking Portal at https:// www.regulations.gov by selecting the Docket ID number or via postal mail, commercial delivery, or hand delivery. Please note that comments submitted by fax or email and those submitted after the comment period will not be accepted. Written requests for information or comments submitted by postal mail or delivery should be addressed to the Director of the Information Collection Clearance Division, U.S. Department of Education, 550 12th Street SW, PCP, Room 9086, Washington, DC 20202–0023. daltland on DSKBBV9HB2PROD with NOTICES SUMMARY: VerDate Sep<11>2014 18:10 Oct 24, 2018 Jkt 247001 For specific questions related to collection activities, please contact Beth Grebeldinger, 202–377–4018. SUPPLEMENTARY INFORMATION: The Department of Education (ED), in accordance with the Paperwork Reduction Act of 1995 (PRA) (44 U.S.C. 3506(c)(2)(A)), provides the general public and Federal agencies with an opportunity to comment on proposed, revised, and continuing collections of information. This helps the Department assess the impact of its information collection requirements and minimize the public’s reporting burden. It also helps the public understand the Department’s information collection requirements and provide the requested data in the desired format. ED is soliciting comments on the proposed information collection request (ICR) that is described below. The Department of Education is especially interested in public comment addressing the following issues: (1) Is this collection necessary to the proper functions of the Department; (2) will this information be processed and used in a timely manner; (3) is the estimate of burden accurate; (4) how might the Department enhance the quality, utility, and clarity of the information to be collected; and (5) how might the Department minimize the burden of this collection on the respondents, including through the use of information technology. Please note that written comments received in response to this notice will be considered public records. Title of Collection: Student Assistance General Provisions—Non-Title IV Revenue Requirements (90/10). OMB Control Number: 1845–0096. Type of Review: An extension of an existing information collection. Respondents/Affected Public: Private Sector. Total Estimated Number of Annual Responses: 1,872. Total Estimated Number of Annual Burden Hours: 2,808. Abstract: As enacted by the Higher Education Opportunity Act (Pub. L. 110–315), the regulations in 34 CFR 668.28 provide that a proprietary institution must derive at least 10% of its annual revenue from sources other than Title IV, HEA funds, sanctions for failing to meet this requirement, and otherwise implement the statute by (1) specifying a Net Present Value (NPV) formula used to establish the revenue for institutional loans, (2) providing an administratively easier alternative to the NPV calculation, and (3) describing more fully the non-Title IV eligible programs from which revenue may be FOR FURTHER INFORMATION CONTACT: PO 00000 Frm 00018 Fmt 4703 Sfmt 4703 counted for 90/10 purposes. The regulations require an institution to disclose in a footnote to its audited financial statements the amounts of Federal and non-Federal revenues, by category, that it used in calculating its 90/10 ratio (see section 487(d) of the HEA). This is a request to extend the information collection that identifies the reporting burden for this regulation. Dated: October 22, 2018. Kate Mullan, Acting Director, Information Collection Clearance Division, Office of the Chief Privacy Officer, Office of Management. [FR Doc. 2018–23364 Filed 10–24–18; 8:45 am] BILLING CODE 4000–01–P DEPARTMENT OF EDUCATION Annual Notice of Interest Rates for Fixed-Rate Federal Student Loans Made Under the William D. Ford Federal Direct Loan Program Federal Student Aid, Department of Education. ACTION: Notice. AGENCY: 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: Jon.Utz@ed.gov. 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. SUMMARY: 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 SUPPLEMENTARY INFORMATION: E:\FR\FM\25OCN1.SGM 25OCN1 53865 Federal Register / Vol. 83, No. 207 / Thursday, October 25, 2018 / Notices 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 10year Treasury notes auctioned at the final auction held before June 1 of that 12-month period, plus a statutory addon 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 Loan type Direct Direct Direct Direct 10-year treasury note high yield 05/ 09/2018 (%) Borrower type Subsidized Loans ................... Unsubsidized Loans Unsubsidized Loans 1 ............. PLUS Loans ........................... Add-on (%) Maximum rate (%) Fixed interest rate (%) Undergraduate students ................... 2.995 2.05 8.25 5.05 Graduate and professional students Parents of dependent undergraduate students. Graduate and professional students. 2.995 2.995 3.60 4.60 9.50 10.50 6.60 7.60 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. 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 daltland on DSKBBV9HB2PROD with NOTICES On/after 07/01/2018 07/01/2017 07/01/2016 07/01/2015 07/01/2014 07/01/2013 Fixed interest rates (%) Before .................................................. .................................................. .................................................. .................................................. .................................................. .................................................. Direct subsidized loans Direct unsubsidized loans (undergraduate students) 07/01/2019 07/01/2018 07/01/2017 07/01/2016 07/01/2015 07/01/2014 Direct unsubsidized loans (graduate or professional students) 5.05 4.45 3.76 4.29 4.66 3.86 Federal Register Notice Direct PLUS loans 6.60 6.00 5.31 5.84 6.21 5.41 7.60 7.00 6.31 6.84 7.21 6.41 1 Graduate and professional students are not eligible to receive Direct Subsidized Loans. VerDate Sep<11>2014 19:45 Oct 24, 2018 Jkt 247001 PO 00000 Frm 00019 Fmt 4703 Sfmt 4703 E:\FR\FM\25OCN1.SGM 25OCN1 N/A. 82 FR 29062 81 FR 38159 80 FR 42488 79 FR 37301 78 FR 59011 2013). (June 27, 2017). (June 13, 2016). (July 17, 2015). (July 1, 2014). (September 25, 53866 Federal Register / Vol. 83, No. 207 / Thursday, October 25, 2018 / Notices 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 disbursed on/after Loan type Borrower type Subsidized .................. Subsidized .................. Subsidized .................. Subsidized .................. Subsidized .................. Subsidized .................. Unsubsidized .............. PLUS .......................... Undergraduate students ..................................................................... Undergraduate students ..................................................................... Undergraduate students ..................................................................... Undergraduate students ..................................................................... Undergraduate students ..................................................................... Graduate or professional students ..................................................... Undergraduate and graduate or professional .................................... Graduate or professional 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 07/01/2011 07/01/2010 07/01/2009 07/01/2008 07/01/2006 07/01/2006 07/01/2006 07/01/2006 First disbursed before Interest rate (%) 07/01/2013 07/01/2011 07/01/2010 07/01/2009 07/01/2008 2 07/01/2012 07/01/2013 07/01/2013 3.40 4.50 5.60 6.00 6.80 6.80 6.80 7.90 455(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 Interest rate (%) On/after 07/01/2013 .................................................................... Weighted average of the interest rates on the loans consolidated, rounded to the nearest higher one-eighth of one percent. (same as above) ........................................................................ On/after 02/01/1999 and before 07/01/2013 .............................. daltland on DSKBBV9HB2PROD with NOTICES Maximum interest rate (%) Application received 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. 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.gpo.gov/ 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 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. VerDate Sep<11>2014 18:10 Oct 24, 2018 Jkt 247001 PO 00000 None 8.25 DEPARTMENT OF ENERGY Biomass Research and Development Technical Advisory Committee Energy Efficiency and Renewable Energy, Department of Energy. AGENCY: ACTION: Notice of open meeting. This notice announces an open meeting of the Biomass Research and Development Technical Advisory Committee under Section 9008(d) of the Food, Conservation, and Energy Act of 2008, amended by the Agricultural Act of 2014. The Federal Advisory Committee Act requires that agencies publish these notices in the Federal Register. SUMMARY: November 15, 2018, 8:30 a.m.– 5:30 p.m.; November 16, 2018, 8:00 a.m.–12:30 p.m. DATES: Frm 00020 Fmt 4703 Sfmt 4703 E:\FR\FM\25OCN1.SGM 25OCN1

Agencies

[Federal Register Volume 83, Number 207 (Thursday, October 25, 2018)]
[Notices]
[Pages 53864-53866]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[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.gpo.gov/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