Annual Notice of Interest Rates for Fixed-Rate Federal Student Loans Made Under the William D. Ford Federal Direct Loan Program, 48229-48231 [2020-17395]
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48229
Federal Register / Vol. 85, No. 154 / Monday, August 10, 2020 / Notices
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Dated: August 4, 2020.
Kate Mullan,
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Clearance Governance and Strategy Division,
Office of Chief Data Officer, Office of
Planning, Evaluation and Policy
Development.
[FR Doc. 2020–17337 Filed 8–7–20; 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.
AGENCY:
Catalog of Federal Domestic Assistance
(CFDA) Number: 84.268.
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
SUMMARY:
(Direct Loan) Program with first
disbursement dates on or after July 1,
2020, and before July 1, 2021.
FOR FURTHER INFORMATION CONTACT:
Travis Sturlaugson, U.S. Department of
Education, 830 First Street NE, 11th
Floor, Washington, DC 20202.
Telephone: (202) 377–4174. Email:
travis.sturlaugson@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,
2020, and before July 1, 2021, 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 12, 2020, the United States
Treasury Department held a 10-year
Treasury note auction that resulted in a
high yield of 0.700 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,
2020, and before July 1, 2021.
CHART 1—DIRECT SUBSIDIZED LOANS, DIRECT UNSUBSIDIZED LOANS, AND DIRECT PLUS LOANS FIRST DISBURSED ON OR
AFTER 07/01/2020 AND BEFORE 07/01/2021
jbell on DSKJLSW7X2PROD with NOTICES
Loan type
Direct
Direct
Direct
Direct
Borrower type
Subsidized Loans ...................
Unsubsidized Loans
Unsubsidized Loans 1 .............
PLUS Loans ...........................
1 Graduate
VerDate Sep<11>2014
10-year Treasury note high
yield 05/12/
2020
(%)
Add-on
(%)
Fixed interest
rate
(%)
Undergraduate students ...................
0.700
2.05
8.25
2.75
Graduate and professional students
Parents
of
dependent
undergraduate students.
Graduate and professional students
0.700
0.700
3.60
4.60
9.50
10.50
4.30
5.30
and professional students are not eligible to receive Direct Subsidized Loans.
20:31 Aug 07, 2020
Maximum rate
(%)
Jkt 250001
PO 00000
Frm 00081
Fmt 4703
Sfmt 4703
E:\FR\FM\10AUN1.SGM
10AUN1
48230
Federal Register / Vol. 85, No. 154 / Monday, August 10, 2020 / Notices
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, 2020, through
June 30, 2021, 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 07/01/2021
First disbursed
On/after
07/01/2020
07/01/2019
07/01/2018
07/01/2017
07/01/2016
07/01/2015
07/01/2014
07/01/2013
Fixed interest rates
(%)
Direct
Subsidized
Loans; Direct
Unsubsidized
Loans
(undergraduate students)
Before
...............
...............
...............
...............
...............
...............
...............
...............
07/01/2021
07/01/2020
07/01/2019
07/01/2018
07/01/2017
07/01/2016
07/01/2015
07/01/2014
Fixed-Rate Direct Subsidized Loans,
Direct Unsubsidized Loans, and Direct
PLUS Loans First Disbursed on or After
July 1, 2006, and Before July 1, 2013
Direct Subsidized Loans, Direct
Unsubsidized Loans, and Direct PLUS
Direct
Unsubsidized
Loans
(graduate or
professional
students)
2.75
4.53
5.05
4.45
3.76
4.29
4.66
3.86
Federal Register Notice
Direct PLUS
Loans
4.30
6.08
6.60
6.00
5.31
5.84
6.21
5.41
5.30
7.08
7.60
7.00
6.31
6.84
7.21
6.41
N/A.
85 FR
83 FR
82 FR
81 FR
80 FR
79 FR
78 FR
2417 (January 15, 2020).
53864 (October 25, 2018).
29062 (June 27, 2017).
38159 (June 13, 2016).
42488 (July 17, 2015).
37301 (July 1, 2014).
59011 (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.
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 students ..........
Graduate or professional students and parents of dependent
undergraduate students.
First
disbursed
before
07/01/2011
07/01/2010
07/01/2009
07/01/2008
07/01/2006
07/01/2006
07/01/2006
07/01/2006
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
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.
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
section 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.
jbell on DSKJLSW7X2PROD with NOTICES
CHART 4—DIRECT CONSOLIDATION LOANS MADE BASED ON APPLICATIONS RECEIVED ON OR AFTER 02/01/1999
Application received
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..
VerDate Sep<11>2014
20:31 Aug 07, 2020
Jkt 250001
PO 00000
Frm 00082
Fmt 4703
Sfmt 4703
Maximum interest rate
(%)
E:\FR\FM\10AUN1.SGM
None
10AUN1
Federal Register / Vol. 85, No. 154 / Monday, August 10, 2020 / Notices
48231
CHART 4—DIRECT CONSOLIDATION LOANS MADE BASED ON APPLICATIONS RECEIVED ON OR AFTER 02/01/1999—
Continued
Application received
Interest rate
(%)
On/after 02/01/1999 and before 07/
01/2013.
(same as above) ....................................................................................
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FURTHER INFORMATION CONTACT.
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Program Authority: 20 U.S.C. 1087, et seq.
Mark A. Brown,
Chief Operating Officer, Federal Student Aid.
[FR Doc. 2020–17395 Filed 8–7–20; 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:
Catalog of Federal Domestic Assistance
(CFDA) Number: 84.268.
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
jbell on DSKJLSW7X2PROD with NOTICES
SUMMARY:
VerDate Sep<11>2014
20:31 Aug 07, 2020
Jkt 250001
Maximum interest rate
(%)
which the application was received
before February 1, 1999. The rates
announced in this notice are in effect for
the period July 1, 2020, through June 30,
2021.
FOR FURTHER INFORMATION CONTACT:
Travis Sturlaugson, U.S. Department of
Education, 830 First Street NE, 11th
Floor, Washington, DC 20202.
Telephone: (202) 377–4174. Email:
travis.sturlaugson@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.
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, 2020, through June 30, 2021. 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
SUPPLEMENTARY INFORMATION:
PO 00000
Frm 00083
Fmt 4703
Sfmt 4703
8.25%
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 26,
2020, is 0.132 percent, rounded to 0.13
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
E:\FR\FM\10AUN1.SGM
10AUN1
]]>Agencies
[Federal Register Volume 85, Number 154 (Monday, August 10, 2020)]
[Notices]
[Pages 48229-48231]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-17395]
-----------------------------------------------------------------------
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.
-----------------------------------------------------------------------
Catalog of Federal Domestic Assistance (CFDA) Number: 84.268.
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, 2020, and
before July 1, 2021.
FOR FURTHER INFORMATION CONTACT: Travis Sturlaugson, U.S. Department of
Education, 830 First Street NE, 11th Floor, Washington, DC 20202.
Telephone: (202) 377-4174. 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, 2020, and before July 1,
2021, 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 12, 2020, the United States Treasury Department held a 10-
year Treasury note auction that resulted in a high yield of 0.700
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, 2020, and before July 1, 2021.
Chart 1--Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct Plus Loans First Disbursed on or After
07/01/2020 and Before 07/01/2021
----------------------------------------------------------------------------------------------------------------
10-year
Treasury note Maximum rate Fixed interest
Loan type Borrower type high yield 05/ Add-on (%) (%) rate (%)
12/2020 (%)
----------------------------------------------------------------------------------------------------------------
Direct Subsidized Loans....... Undergraduate 0.700 2.05 8.25 2.75
students.
Direct Unsubsidized Loans
Direct Unsubsidized Loans \1\. Graduate and 0.700 3.60 9.50 4.30
professional
students.
Direct PLUS Loans............. Parents of 0.700 4.60 10.50 5.30
dependent
undergraduate
students.
Graduate and
professional
students.
----------------------------------------------------------------------------------------------------------------
\1\ Graduate and professional students are not eligible to receive Direct Subsidized Loans.
[[Page 48230]]
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, 2020, through June 30, 2021,
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 07/01/2021
--------------------------------------------------------------------------------------------------------------------------------------------------------
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)
--------------------------------------------------------------------------------------------------------------------------------------------------------
07/01/2020................................... 07/01/2021 2.75 4.30 5.30 N/A.
07/01/2019................................... 07/01/2020 4.53 6.08 7.08 85 FR 2417 (January 15, 2020).
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 1, 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 students.
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.
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 section 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 interest
Application received Interest rate (%) 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..
[[Page 48231]]
On/after 02/01/1999 and before (same as above)....... 8.25%
07/01/2013.
------------------------------------------------------------------------
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FURTHER INFORMATION CONTACT.
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Program Authority: 20 U.S.C. 1087, et seq.
Mark A. Brown,
Chief Operating Officer, Federal Student Aid.
[FR Doc. 2020-17395 Filed 8-7-20; 8:45 am]
BILLING CODE 4000-01-P
