Annual Notice of Interest Rates for Fixed-Rate Federal Student Loans Made Under the William D. Ford Federal Direct Loan Program, 2417-2419 [2020-00569]

Download as PDF 2417 Federal Register / Vol. 85, No. 10 / Wednesday, January 15, 2020 / Notices CHART 4—FEDERAL CONSOLIDATION LOANS Consolidation loan component Cohort Portion of loan that repaid loans other than HEAL loans. Portion of the loan that repaid HEAL loans. Application received on/after 11/13/97 and before 10/01/98. Application received on/after 11/13/97 ... Accessible Format: Individuals with disabilities can obtain this document in an accessible format (e.g., Braille, large print, audiotape, or compact disc) on request to the contact person listed under FOR FURTHER INFORMATION CONTACT. 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 at www.govinfo.gov. 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: January 9, 2020. Mark A. Brown, Chief Operating Officer, Federal Student Aid. [FR Doc. 2020–00570 Filed 1–14–20; 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. jbell on DSKJLSW7X2PROD with NOTICES AGENCY: The Chief Operating Officer for Federal Student Aid announces the interest rates for Federal Direct Stafford/ Ford Loans (Direct Subsidized Loans), SUMMARY: VerDate Sep<11>2014 17:18 Jan 14, 2020 91-Day T-bill rate 05/28/19 (%) Jkt 250001 Average of the bond equivalent rates of the 91-day Tbills auctioned for the quarter ending 06/30/19 (%) Frm 00035 Fmt 4703 Sfmt 4703 Maximum rate (%) Interest rate 07/01/19 through 06/30/20 (%) 2.36 N/A 3.10 8.25 5.46 N/A 2.37 3.00 None 5.37 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, 2019, and before July 1, 2020. Catalog of Federal Domestic Assistance (CFDA) Number: 84.268. 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. SUPPLEMENTARY INFORMATION: 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 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, PO 00000 Add-on (%) 2019, and before July 1, 2020, 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 8, 2019, the United States Treasury Department held a 10-year Treasury note auction that resulted in a high yield of 2.479 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, 2019, and before July 1, 2020. E:\FR\FM\15JAN1.SGM 15JAN1 2418 Federal Register / Vol. 85, No. 10 / Wednesday, January 15, 2020 / Notices CHART 1—DIRECT SUBSIDIZED LOANS, DIRECT UNSUBSIDIZED LOANS, AND DIRECT PLUS LOANS FIRST DISBURSED ON OR AFTER 07/01/2019 AND BEFORE 07/01/2020 10-Year treasury note high yield 05/08/2019 (%) Add-on (%) Maximum rate (%) Fixed interest rate (%) Loan type Borrower type Direct Subsidized Loans, Direct Unsubsidized Loans. Direct Unsubsidized Loans 1 ............. Direct PLUS Loans ........................... Undergraduate students ................... 2.479 2.05 8.25 4.53 Graduate and professional students Parents of dependent undergraduate students, Graduate and professional students. 2.479 2.479 3.60 4.60 9.50 10.50 6.08 7.08 1 Graduate and professional students are not eligible to receive Direct Subsidized Loans. 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, 2019, through June 30, 2020, with the fixed interest rates for loans first disbursed during each previous 12-month period from July 1, 2013, through June 30, 2019. CHART 2—DIRECT SUBSIDIZED LOANS, DIRECT UNSUBSIDIZED LOANS, AND DIRECT PLUS LOANS FIRST DISBURSED ON OR AFTER 07/01/2013 AND BEFORE 07/01/2020 First disbursed Fixed interest rates (%) On/after 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 07/01/2013 07/01/2020 07/01/2019 07/01/2018 07/01/2017 07/01/2016 07/01/2015 07/01/2014 4.53 5.05 4.45 3.76 4.29 4.66 3.86 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 Direct Unsubsidized Loans (graduate or professional students) Direct PLUS Loans Federal Register notice 6.08 6.60 6.00 5.31 5.84 6.21 5.41 7.08 7.60 7.00 6.31 6.84 7.21 6.41 N/A. 83 FR 82 FR 81 FR 80 FR 79 FR 78 FR 53864 29062 38159 42488 37301 59011 (October 25, 2018). (June 27, 2017). (June 13, 2016). (July 17, 2015). (July 1, 2014). (September 25, 2013). 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. jbell on DSKJLSW7X2PROD with NOTICES 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. 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 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 Interest rate (%) 3.40 4.50 5.60 6.00 6.80 6.80 6.80 7.90 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 17:18 Jan 14, 2020 Jkt 250001 PO 00000 Frm 00036 Fmt 4703 Sfmt 4703 E:\FR\FM\15JAN1.SGM 15JAN1 Federal Register / Vol. 85, No. 10 / Wednesday, January 15, 2020 / Notices 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 2419 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 .............................. 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 at www.govinfo.gov. 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: January 9, 2020. Mark A. Brown, Chief Operating Officer, Federal Student Aid. [FR Doc. 2020–00569 Filed 1–14–20; 8:45 am] BILLING CODE 4000–01–P DEPARTMENT OF ENERGY President’s Council of Advisors on Science and Technology Meeting Office of Science, Department of Energy. ACTION: Notice of partially-closed meeting. AGENCY: jbell on DSKJLSW7X2PROD with NOTICES Maximum interest rate (%) Application received This notice sets forth the schedule and summary agenda for an open meeting of the President’s Council SUMMARY: VerDate Sep<11>2014 17:18 Jan 14, 2020 Jkt 250001 of Advisors on Science and Technology (PCAST), and describes the functions of the Council. The Federal Advisory Committee Act (FACA) requires that public notice of these meetings be announced in the Federal Register. DATES: February 3, 2020; 8:30 a.m. to 5:30 p.m. February 4, 2020; 8:30 a.m. to 12:30 p.m. ADDRESSES: The meeting will be held at the Eisenhower Executive Office Building, 1650 Pennsylvania Avenue NW, Washington, DC 20502. FOR FURTHER INFORMATION CONTACT: Individuals from the public who wish to attend must register using the following email address: PCAST@ostp.eop.gov. Please note that public seating for this meeting is limited and is available on a first-come, first-served basis. Questions about the meeting should be directed to Edward McGinnis, Executive Director, PCAST, at: (202) 456–6076 or email: PCAST@ostp.eop.gov. SUPPLEMENTARY INFORMATION: PCAST is an advisory group of the nation’s leading scientists and engineers, appointed by the President to augment the science and technology advice available to him from inside the White House, cabinet departments, and other Federal agencies. See the Executive Order at whitehouse.gov. PCAST is consulted about and provides analyses and recommendations concerning a wide range of issues where understandings from the domains of science, technology, and innovation may bear on the policy choices before the President. PCAST is chaired by Dr. Kelvin Droegemeier, Director, Office of Science and Technology Policy, Executive Office of the President, The White House. Information about PCAST can be found at: https://science.osti.gov/ About/PCAST. Type of Meeting: Open and Closed. Proposed Schedule and Agenda: PO 00000 Frm 00037 Fmt 4703 Sfmt 4703 None 8.25 Open Portion of the Meeting: During this open portion of the meeting, PCAST is scheduled to discuss the new PCAST subcommittees and the NSB Science and Engineering Indicators Report, among other PCAST-related matters. Closed Portion of the Meeting: PCAST may hold a closed portion of the meeting currently estimated to last for up to approximately one hour. This meeting will be closed to the public because such portion of the meeting is likely to disclose matters that are to be kept secret in the interest of national defense or foreign policy under 5 U.S.C. 552b(c)(1). Public Comments: It is the policy of the PCAST to accept written public comments no longer than 20 pages and to accommodate oral public comments whenever possible. The PCAST expects that public statements presented at its meetings will not be repetitive of previously submitted oral or written statements. The public comment period for this meeting will take place on February 4, 2020, at a time specified in the meeting agenda. This public comment period is designed only for substantive commentary on PCAST’s work, not for business marketing purposes. Oral Comments: To be considered for the public speaker list at the meeting, interested parties should register to speak at PCAST@ostp.eop.gov, no later than 9:00 a.m. Eastern Time on January 29, 2020. To accommodate as many speakers as possible, the time for public comments will be limited to two (2) minutes per person, with a total public comment period of up to 10 minutes. If more speakers register than there is space available on the agenda, PCAST will select speakers on a first-come, first-served basis from those who applied. Those not able to present oral comments may always file written comments with the committee. Speakers E:\FR\FM\15JAN1.SGM 15JAN1

Agencies

[Federal Register Volume 85, Number 10 (Wednesday, January 15, 2020)]
[Notices]
[Pages 2417-2419]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-00569]


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

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 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, 2019, and 
before July 1, 2020. Catalog of Federal Domestic Assistance (CFDA) 
Number: 84.268.

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: 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 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, 2019, and before July 1, 
2020, 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 8, 2019, the United States Treasury Department held a 10-
year Treasury note auction that resulted in a high yield of 2.479 
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, 2019, and before July 1, 2020.

[[Page 2418]]



 Chart 1--Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct PLUS Loans First Disbursed on or After
                                        07/01/2019 and Before 07/01/2020
----------------------------------------------------------------------------------------------------------------
                                                      10-Year
                                                  treasury  note                   Maximum rate        Fixed
           Loan type              Borrower type     high  yield     Add-on (%)          (%)        interest rate
                                                  05/08/2019 (%)                                        (%)
----------------------------------------------------------------------------------------------------------------
Direct Subsidized Loans,        Undergraduate              2.479            2.05            8.25            4.53
 Direct Unsubsidized Loans.      students.
Direct Unsubsidized Loans \1\.  Graduate and               2.479            3.60            9.50            6.08
                                 professional
                                 students.
Direct PLUS Loans.............  Parents of                 2.479            4.60           10.50            7.08
                                 dependent
                                 undergraduate
                                 students,
                                 Graduate and
                                 professional
                                 students.
----------------------------------------------------------------------------------------------------------------
\1\ Graduate and professional students are not eligible to receive Direct Subsidized Loans.

    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, 2019, through June 30, 2020, 
with the fixed interest rates for loans first disbursed during each 
previous 12-month period from July 1, 2013, through June 30, 2019.

     Chart 2--Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct PLUS Loans First Disbursed on or After 07/01/2013 and Before 07/01/2020
--------------------------------------------------------------------------------------------------------------------------------------------------------
           First disbursed                               Fixed interest rates (%)
---------------------------------------------------------------------------------------------------
                                         Direct Subsidized
                                           Loans, Direct          Direct
                                           Unsubsidized     Unsubsidized Loans                                     Federal Register notice
     On/after             Before              Loans,           (graduate or      Direct PLUS Loans
                                          (undergraduate       professional
                                             students)           students)
--------------------------------------------------------------------------------------------------------------------------------------------------------
       07/01/2019          07/01/2020                4.53                6.08                7.08   N/A.
       07/01/2018          07/01/2019                5.05                6.60                7.60   83 FR 53864 (October 25, 2018).
       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).
--------------------------------------------------------------------------------------------------------------------------------------------------------

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.
----------------------------------------------------------------------------------------------------------------
\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.


[[Page 2419]]

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 the            None
                                  interest rates on the
                                  loans consolidated,
                                  rounded to the nearest
                                  higher one-eighth of
                                  one percent.
On/after 02/01/1999 and before   (same as above)........            8.25
 07/01/2013.
------------------------------------------------------------------------

    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.
    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 at www.govinfo.gov. 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: January 9, 2020.
Mark A. Brown,
Chief Operating Officer, Federal Student Aid.
[FR Doc. 2020-00569 Filed 1-14-20; 8:45 am]
 BILLING CODE 4000-01-P