[Federal Register Volume 79, Number 126 (Tuesday, July 1, 2014)]
[Notices]
[Pages 37301-37302]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-15430]


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DEPARTMENT OF EDUCATION


Annual Notice of Interest Rates of Federal Student Loans Made 
Under the William D. Ford Federal Direct Loan Program on or After July 
1, 2013

AGENCY: Federal Student Aid, Department of Education.

ACTION: Notice.

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Catalog of Federal Domestic Assistance (CFDA) Number: 84.268.

DATES: This notice is effective July 1, 2014.
SUMMARY: The Chief Operating Officer for Federal Student Aid announces 
the interest rates for loans made under the William D. Ford Federal 
Direct Loan (Direct Loan) Program on or after July 1, 2014, through 
June 30, 2015.

FOR FURTHER INFORMATION CONTACT: Ian Foss, U.S. Department of 
Education, 830 First Street NE., Room 114I1, Washington, DC 20202. 
Telephone: (202) 377-3681 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.
    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.

SUPPLEMENTARY INFORMATION: Section 455(b) of the Higher Education Act 
of 1965, as amended (HEA) (20 U.S.C. 1087e(b)), provides formulas for 
determining the interest rates charged to borrowers for loans made 
under the Direct Loan Program including: Federal Direct Subsidized 
Stafford Loans (Direct Subsidized Loans); Federal Direct Unsubsidized 
Stafford Loans (Direct Unsubsidized Loans); Federal Direct PLUS Loans 
(Direct PLUS Loans); and Federal Direct Consolidation Loans (Direct 
Consolidation Loans).
    Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct PLUS 
Loans (collectively, Direct Loans) first disbursed on or after July 1, 
2013, have a fixed interest rate that is calculated based on the high 
yield of the 10-year Treasury notes auctioned at the final auction held 
before June 1 of each year, plus a statutory add-on percentage. 
Therefore, while the interest rate determination for new loans will be 
different from year to year, such loans will have a fixed interest rate 
for the life of the loan. In each case, the calculated rate is capped 
by a maximum interest rate.
    The following chart contains specific information on the 
calculation of the interest rates for Direct Loans first disbursed on 
or after July 1, 2014, and through June 30, 2015. We publish a separate 
notice containing the interest rates for Direct Loans that were made in 
prior years.

     Fixed-Rate Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct PLUS Loans First Disbursed on or After 7/1/2014 and Through 6/30/2015
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                                                                      Cohort                Index rate
                                                         ------------------------------------------------
             Loan type               Student grade level       First           First                          Margin        Fixed rate       Max. rate
                                                           disbursed on/     disbursed        10-Year        (percent)       (percent)       (percent)
                                                               after          before       treasury note
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Subsidized........................  Undergraduates......        7/1/2014        7/1/2015            2.61            2.05            4.66            8.25
Unsubsidized......................  Undergraduates......        7/1/2014        7/1/2015            2.61            2.05            4.66            8.25
Unsubsidized......................  Graduate and                7/1/2014        7/1/2015            2.61            3.60            6.21            9.50
                                     Professional
                                     Students.
PLUS..............................  Parents of Dependent        7/1/2014        7/1/2015            2.61            4.60            7.21           10.50
                                     Undergraduates.
PLUS..............................  Graduate and                7/1/2014        7/1/2015            2.61            4.60            7.21           10.50
                                     Professional
                                     Students.
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    If an application for a Direct Consolidation Loan is received by 
the Department on or after July 1, 2013, the interest rate on that loan 
is the weighted average of the consolidated loans, rounded up to the 
nearest higher \1/8\ of 1 percent. Such Direct Consolidation Loans do 
not have an interest rate cap.
    Electronic Access to This Document: The official version of this 
document is the document published in the Federal Register. Free 
Internet access to the

[[Page 37302]]

official edition of the Federal Register and the Code of Federal 
Regulations is available via the Federal Digital System at: 
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by the Department.

    Authority: 20 U.S.C. 1087, et seq.

    Dated: June 26, 2014.
James F. Manning,
Chief of Staff of Federal Student Aid, delegated the authority to 
perform the functions and duties of the Chief Operating Officer of 
Federal Student Aid.
[FR Doc. 2014-15430 Filed 6-30-14; 8:45 am]
BILLING CODE 4000-01-P