[Federal Register Volume 62, Number 125 (Monday, June 30, 1997)]
[Notices]
[Pages 35164-35165]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-17061]


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DEPARTMENT OF EDUCATION


Office of Postsecondary Education; William D. Ford Federal Direct 
Loan Program

AGENCY: Department of Education.

ACTION: Notice of interest rates for the William D. Ford Federal Direct 
Loan Program for the period July 1, 1997, through June 30, 1998.

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SUMMARY: The Assistant Secretary for Postsecondary Education announces 
the interest rates for variable rate loans made under the William D. 
Ford Federal Direct Loan (Direct Loan) Program for the period July 1, 
1997, through June 30, 1998.

FOR FURTHER INFORMATION CONTACT: Barbara F. Grayson, Program 
Specialist, William D. Ford Federal Direct Loan Program, Policy 
Development Division, Office of Postsecondary Education, U.S. 
Department of Education, Room 3045, ROB-3, 600 Independence Avenue, SW, 
Washington, DC 20202-5400. Telephone: (202) 708-8242. Individuals who 
use a telecommunications device for the deaf (TDD) may call the Federal 
Information Relay Service (FIRS) at 1-800-877-8339 between 8 a.m. and 8 
p.m., Eastern time, Monday through Friday.

SUPPLEMENTARY INFORMATION: The formulas for determining the interest 
rates for Direct Loan Program loans are provided under section 455 of 
the Higher Education Act of 1965, as amended (the Act) (20 U.S.C. 
1087e), and as codified in 34 CFR 685.202(a) and 685.215(g). Section 
455(b) of the Act provides that a variable interest rate applies to 
loans made under the Direct Loan Program and disbursed on or after July 
1, 1994. The variable rate is determined annually and applies for each 
12-month period beginning July 1 and ending June 30. For Federal Direct 
Stafford/Ford (Direct Subsidized) and Federal Direct Unsubsidized 
Stafford/Ford (Direct Unsubsidized) Loans, and Federal Direct 
Subsidized and Federal Direct Unsubsidized Consolidation Loans, the 
interest rate may not exceed 8.25 percent. For Federal Direct PLUS and 
Federal Direct PLUS Consolidation Loans, the interest rate may not 
exceed 9 percent.

Interest Rates for Direct Subsidized, Direct Unsubsidized, Direct 
Subsidized Consolidation, and Direct Unsubsidized Consolidation 
Loans

    Loans first disbursed prior to July 1, 1995. Pursuant to section 
455(b)(1) of the Act, the Assistant Secretary has determined the 
interest rate for the period July 1, 1997, through June 30, 1998, to be 
8.25 percent.
    Loans first disbursed on or after July 1, 1995. (a) During the in-
school, grace, and deferment periods. Pursuant to section 455(b)(2) of 
the Act, the Assistant Secretary has determined the interest rate for 
the period July 1, 1997, through June 30, 1998, to be 7.66 percent.
    (b) During all other periods. Pursuant to section 455(b)(1) of the 
Act, the Assistant Secretary has determined the interest rate for the 
period July 1, 1997, through June 30, 1998, to be 8.25 percent.

Interest Rates for Direct PLUS and Direct PLUS Consolidation Loans

    Pursuant to section 455(b)(4) of the Act, the Assistant Secretary 
has determined the interest rate for the period July 1, 1997, through 
June 30, 1998, to be 8.98 percent. (20 U.S.C. 1087e)


[[Page 35165]]


    Dated: June 13, 1997.
David A. Longanecker,
Assistant Secretary for Postsecondary Education.
[FR Doc. 97-17061 Filed 6-27-97; 8:45 am]
BILLING CODE 4000-01-P