Annual Notice of Interest Rates for Variable-Rate Federal Student Loans Made Under the William D. Ford Federal Direct Loan Program, 2413-2414 [2020-00572]
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Federal Register / Vol. 85, No. 10 / Wednesday, January 15, 2020 / Notices
Type of Review: A new information
collection.
Respondents/Affected Public:
Individuals or Households.
Total Estimated Number of Annual
Responses: 262,400.
Total Estimated Number of Annual
Burden Hours: 74,975.
Abstract: Federal Student Aid (FSA)
seeks to obtain OMB approval of a Fast
Track Process (5-day) generic clearance
to collect qualitative feedback for the
Next Generation Financial Services
Environment (Next Gen). FSA will
collect, analyze, and interpret
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generic clearance to identify strengths
and weaknesses of current service
delivery and make improvements based
on feedback. The solicitation of
feedback will target areas such as:
consistency, personalization,
intuitiveness, accessibility, ease of use,
proactive communication, and
efficiency. The collection of this
information will allow FSA to deliver
clear, consistent information and readily
accessible self-service options at every
stage of the student aid lifecycle. The
insights collected from our customers
and stakeholders will help ensure that
users have a consistent, efficient, and
satisfying experience with FSA’s
programs.
Dated: January 10, 2020.
Kate Mullan,
PRA Coordinator, Strategic Collections and
Clearance Governance and Strategy Division
Office of Chief Data Officer.
[FR Doc. 2020–00498 Filed 1–14–20; 8:45 am]
BILLING CODE 4000–01–P
DEPARTMENT OF EDUCATION
Annual Notice of Interest Rates for
Variable-Rate Federal Student Loans
Made Under the William D. Ford
Federal Direct Loan Program
Federal Student Aid,
Department of Education.
ACTION: Notice.
AGENCY:
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 Loan) with first
disbursement dates before July 1, 2006,
and for Federal Direct Consolidation
Loans (Direct Consolidation Loans) for
which the application was received
before February 1, 1999. The rates
announced in this notice are in effect for
the period July 1, 2019, through June 30,
jbell on DSKJLSW7X2PROD with NOTICES
SUMMARY:
VerDate Sep<11>2014
17:18 Jan 14, 2020
Jkt 250001
2020. Catalog of Federal Domestic
Assistance (CFDA) Number: 84.268.
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.
FOR FURTHER INFORMATION CONTACT:
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 before July 1,
2006, and Direct Consolidation Loans
for which the application was received
before February 1, 1999, have variable
interest rates. For these loans, a new rate
is determined annually and is in effect
during the period from July 1 of one
year through June 30 of the following
year.
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.
This notice announces the interest
rates for variable-rate Direct Loans that
will apply during the period from July
1, 2019, through June 30, 2020. Interest
rate information for fixed-rate Direct
Loans is announced in a separate notice
published in the Federal Register.
Interest rates for variable-rate Direct
Loans are determined in accordance
with formulas specified in section
455(b) of the Higher Education Act of
1965, as amended (HEA) (20 U.S.C.
1087e(b)). The formulas vary depending
on loan type and when the loan was
first disbursed or, for certain Direct
Consolidation Loans, when the
application for the loan was received.
The HEA specifies a maximum interest
rate for these loan types. If the interest
rate formula results in a rate that
exceeds the statutory maximum rate, the
rate is the statutory maximum rate.
SUPPLEMENTARY INFORMATION:
PO 00000
Frm 00031
Fmt 4703
Sfmt 4703
2413
Variable-Rate Direct Subsidized Loans,
Direct Unsubsidized Loans, and Direct
PLUS Loans
For Direct Subsidized Loans and
Direct Unsubsidized Loans with first
disbursement dates before July 1, 2006,
and for Direct PLUS Loans with first
disbursement dates on or after July 1,
1998, and before July 1, 2006, the
interest rate is equal to the lesser of—
(1) The bond equivalent rate of 91-day
Treasury bills auctioned at the final
auction held before the June 1
immediately preceding the 12-month
period to which the interest rate applies,
plus a statutory add-on percentage; or
(2) 8.25 percent (for Direct Subsidized
Loans and Direct Unsubsidized Loans)
or 9.00 percent (for Direct PLUS Loans).
For Direct Subsidized Loans and
Direct Unsubsidized Loans with first
disbursement dates on or after July 1,
1995, and before July 1, 2006, the
statutory add-on percentage varies
depending on whether the loan is in an
in-school, grace, or deferment status, or
in any other status. For all other loans,
the statutory add-on percentage is the
same during any status.
The bond equivalent rate of 91-day
Treasury bills auctioned on May 28,
2019, is 2.362 percent, rounded to 2.36
percent.
For Direct PLUS Loans with first
disbursement dates before July 1, 1998,
the interest rate is equal to the lesser
of—
(1) The weekly average 1-year
constant maturity Treasury yield, as
published by the Board of Governors of
the Federal Reserve System, for the last
calendar week ending on or before the
June 26 preceding the 12-month period
to which the interest rate applies, plus
a statutory add-on percentage; or
(2) 9.00 percent.
The weekly average of the one-year
constant maturity Treasury yield, as
published by the Board of Governors of
the Federal Reserve System, for the last
calendar week ending on or before June
26, 2019, is 1.98 percent.
Variable-Rate Direct Consolidation
Loans
A Direct Consolidation Loan may
have up to three components,
depending on the types of loans that
were repaid by the consolidation loan
and when the application for the
consolidation loan was received. The
three components are called Direct
Subsidized Consolidation Loans, Direct
Unsubsidized Consolidation Loans, and
(only for Direct Consolidation Loans
made based on applications received
before July 1, 2006) Direct PLUS
E:\FR\FM\15JAN1.SGM
15JAN1
2414
Federal Register / Vol. 85, No. 10 / Wednesday, January 15, 2020 / Notices
Consolidation Loans. In most cases the
interest rates for variable-rate Direct
Subsidized Consolidation Loans, Direct
Unsubsidized Consolidation Loans, and
Direct PLUS Consolidation Loans are
determined in accordance with the same
formulas that apply to Direct Subsidized
Loans, Direct Unsubsidized Loans, and
Direct PLUS Loans, respectively.
Interest Rate Charts
Charts 1 and 2 show the interest rate
formulas used to determine the interest
rates for all variable-rate Direct Loans
and the rates that are in effect during the
12-month period from July 1, 2019,
through June 30, 2020.
Chart 1 shows the interest rates for
loans with rates based on the 91-day
Treasury bill rate. Chart 2 shows the
interest rates for loans with rates based
on the weekly average of the one-year
constant maturity Treasury yield.
CHART 1—DIRECT SUBSIDIZED LOANS, DIRECT UNSUBSIDIZED LOANS, DIRECT SUBSIDIZED CONSOLIDATION LOANS,
DIRECT UNSUBSIDIZED CONSOLIDATION LOANS, DIRECT PLUS LOANS, AND DIRECT PLUS CONSOLIDATION LOANS
[Interest rates based on 91-day Treasury bill]
Loan type
Cohort
Subsidized, Unsubsidized .............
First disbursed on/after 07/01/98
and before 07/01/06.
First disbursed on/after 07/01/98
and before 10/01/98; or Application received before 10/01/98
and first disbursed on/after 10/
01/98.
2.36
PLUS .............................................
First disbursed on/after 07/01/98
and before 07/01/06.
2.36
PLUS Consolidation ......................
First disbursed on/after 07/01/
1998 and before 10/01/1998; or
Application received before 10/
01/98 and first disbursed on/
after 10/01/98.
Subsidized, Unsubsidized, Subsidized Consolidation, Unsubsidized Consolidation.
Subsidized Consolidation, Unsubsidized Consolidation.
91-Day T-bill
rate 05/28/19
(%)
Add-on
(%)
* 1.70
Maximum rate
(%)
† 2.30
Interest rate 07/01/19
through 06/30/20
(%)
8.25
3.10
* 4.06
9.00
† 4.66
5.46
........................
....................
....................
........................
....................
....................
First disbursed on/after 07/01/95
and before 07/01/98.
2.36
* 2.50
† 3.10
8.25
* 4.86
† 5.46
Subsidized, Unsubsidized, Subsidized Consolidation, Unsubsidized Consolidation.
First disbursed before 07/01/95 ....
2.36
3.10
8.25
5.46
Subsidized Consolidation, Unsubsidized Consolidation, PLUS
Consolidation.
Application received on/after 10/
01/98 and before 02/01/99.
2.36
2.30
8.25
4.66
CHART 2—DIRECT PLUS LOANS AND DIRECT PLUS CONSOLIDATION LOANS
[Interest rates based on weekly average of one-year constant maturity Treasury yield]
Loan type
Cohort
jbell on DSKJLSW7X2PROD with NOTICES
PLUS, PLUS Consolidation ........
First disbursed before 07/01/98
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
VerDate Sep<11>2014
17:18 Jan 14, 2020
Weekly average of
1-year constant
maturity treasury
yield for last
calendar week
ending on or
before 06/26/19
(%)
Jkt 250001
1.98
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
PO 00000
Frm 00032
Fmt 4703
Sfmt 9990
Add-on
(%)
Maximum rate
(%)
3.10
Interest rate
07/01/19
through 06/30/20
(%)
9.00
5.08
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. 2020–00572 Filed 1–14–20; 8:45 am]
BILLING CODE 4000–01–P
E:\FR\FM\15JAN1.SGM
15JAN1
]]>Agencies
[Federal Register Volume 85, Number 10 (Wednesday, January 15, 2020)]
[Notices]
[Pages 2413-2414]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-00572]
-----------------------------------------------------------------------
DEPARTMENT OF EDUCATION
Annual Notice of Interest Rates for Variable-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
Loan) with first disbursement dates before July 1, 2006, and for
Federal Direct Consolidation Loans (Direct Consolidation Loans) for
which the application was received before February 1, 1999. The rates
announced in this notice are in effect for the period July 1, 2019,
through June 30, 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 before July 1, 2006, and Direct
Consolidation Loans for which the application was received before
February 1, 1999, have variable interest rates. For these loans, a new
rate is determined annually and is in effect during the period from
July 1 of one year through June 30 of the following year.
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.
This notice announces the interest rates for variable-rate Direct
Loans that will apply during the period from July 1, 2019, through June
30, 2020. Interest rate information for fixed-rate Direct Loans is
announced in a separate notice published in the Federal Register.
Interest rates for variable-rate Direct Loans are determined in
accordance with formulas specified in section 455(b) of the Higher
Education Act of 1965, as amended (HEA) (20 U.S.C. 1087e(b)). The
formulas vary depending on loan type and when the loan was first
disbursed or, for certain Direct Consolidation Loans, when the
application for the loan was received. The HEA specifies a maximum
interest rate for these loan types. If the interest rate formula
results in a rate that exceeds the statutory maximum rate, the rate is
the statutory maximum rate.
Variable-Rate Direct Subsidized Loans, Direct Unsubsidized Loans, and
Direct PLUS Loans
For Direct Subsidized Loans and Direct Unsubsidized Loans with
first disbursement dates before July 1, 2006, and for Direct PLUS Loans
with first disbursement dates on or after July 1, 1998, and before July
1, 2006, the interest rate is equal to the lesser of--
(1) The bond equivalent rate of 91-day Treasury bills auctioned at
the final auction held before the June 1 immediately preceding the 12-
month period to which the interest rate applies, plus a statutory add-
on percentage; or
(2) 8.25 percent (for Direct Subsidized Loans and Direct
Unsubsidized Loans) or 9.00 percent (for Direct PLUS Loans).
For Direct Subsidized Loans and Direct Unsubsidized Loans with
first disbursement dates on or after July 1, 1995, and before July 1,
2006, the statutory add-on percentage varies depending on whether the
loan is in an in-school, grace, or deferment status, or in any other
status. For all other loans, the statutory add-on percentage is the
same during any status.
The bond equivalent rate of 91-day Treasury bills auctioned on May
28, 2019, is 2.362 percent, rounded to 2.36 percent.
For Direct PLUS Loans with first disbursement dates before July 1,
1998, the interest rate is equal to the lesser of--
(1) The weekly average 1-year constant maturity Treasury yield, as
published by the Board of Governors of the Federal Reserve System, for
the last calendar week ending on or before the June 26 preceding the
12-month period to which the interest rate applies, plus a statutory
add-on percentage; or
(2) 9.00 percent.
The weekly average of the one-year constant maturity Treasury
yield, as published by the Board of Governors of the Federal Reserve
System, for the last calendar week ending on or before June 26, 2019,
is 1.98 percent.
Variable-Rate Direct Consolidation Loans
A Direct Consolidation Loan may have up to three components,
depending on the types of loans that were repaid by the consolidation
loan and when the application for the consolidation loan was received.
The three components are called Direct Subsidized Consolidation Loans,
Direct Unsubsidized Consolidation Loans, and (only for Direct
Consolidation Loans made based on applications received before July 1,
2006) Direct PLUS
[[Page 2414]]
Consolidation Loans. In most cases the interest rates for variable-rate
Direct Subsidized Consolidation Loans, Direct Unsubsidized
Consolidation Loans, and Direct PLUS Consolidation Loans are determined
in accordance with the same formulas that apply to Direct Subsidized
Loans, Direct Unsubsidized Loans, and Direct PLUS Loans, respectively.
Interest Rate Charts
Charts 1 and 2 show the interest rate formulas used to determine
the interest rates for all variable-rate Direct Loans and the rates
that are in effect during the 12-month period from July 1, 2019,
through June 30, 2020.
Chart 1 shows the interest rates for loans with rates based on the
91-day Treasury bill rate. Chart 2 shows the interest rates for loans
with rates based on the weekly average of the one-year constant
maturity Treasury yield.
Chart 1--Direct Subsidized Loans, Direct Unsubsidized Loans, Direct Subsidized Consolidation Loans, Direct Unsubsidized Consolidation Loans, Direct PLUS
Loans, and Direct PLUS Consolidation Loans
[Interest rates based on 91-day Treasury bill]
--------------------------------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------------------------------------------
Loan type Cohort.................... 91-Day T-bill Add-on Maximum rate Interest rate 07/01/19
rate 05/28/19 (%) (%) through 06/30/20
(%) (%)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Subsidized, Unsubsidized................ First disbursed on/after 2.36 * 1.70 [dagger] 8.25 * 4.06 [dagger]
07/01/98 and before 07/01/ 2.30 4.66
06.
Subsidized Consolidation, Unsubsidized First disbursed on/after
Consolidation. 07/01/98 and before 10/01/
98; or Application
received before 10/01/98
and first disbursed on/
after 10/01/98.
-----------------------------------------------------------------------------------
PLUS.................................... First disbursed on/after 2.36 3.10 9.00 5.46
07/01/98 and before 07/01/
06.
-----------------------------------------------------------------------------------
PLUS Consolidation...................... First disbursed on/after .............. ........... ........... .............. ........... ...........
07/01/1998 and before 10/
01/1998; or Application
received before 10/01/98
and first disbursed on/
after 10/01/98.
-----------------------------------------------------------------------------------
Subsidized, Unsubsidized, Subsidized First disbursed on/after 2.36 * 2.50 [dagger] 8.25 * 4.86 [dagger]
Consolidation, Unsubsidized 07/01/95 and before 07/01/ 3.10 5.46
Consolidation. 98.
-----------------------------------------------------------------------------------
Subsidized, Unsubsidized, Subsidized First disbursed before 07/ 2.36 3.10 8.25 5.46
Consolidation, Unsubsidized 01/95.
Consolidation.
-----------------------------------------------------------------------------------
Subsidized Consolidation, Unsubsidized Application received on/ 2.36 2.30 8.25 4.66
Consolidation, PLUS Consolidation. after 10/01/98 and before
02/01/99.
--------------------------------------------------------------------------------------------------------------------------------------------------------
Chart 2--Direct PLUS Loans and Direct PLUS Consolidation Loans
[Interest rates based on weekly average of one-year constant maturity Treasury yield]
--------------------------------------------------------------------------------------------------------------------------------------------------------
Weekly average of
1-year constant
maturity treasury
yield for last Maximum rate Interest rate 07/
Loan type Cohort calendar week Add-on (%) (%) 01/19 through 06/
ending on or 30/20 (%)
before 06/26/19
(%)
--------------------------------------------------------------------------------------------------------------------------------------------------------
PLUS, PLUS Consolidation....................... First disbursed before 07/01/98.. 1.98 3.10 9.00 5.08
--------------------------------------------------------------------------------------------------------------------------------------------------------
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. 1087 et seq.
Dated: January 9, 2020.
Mark A. Brown,
Chief Operating Officer, Federal Student Aid.
[FR Doc. 2020-00572 Filed 1-14-20; 8:45 am]
BILLING CODE 4000-01-P
