[Federal Register Volume 82, Number 122 (Tuesday, June 27, 2017)]
[Notices]
[Pages 29062-29063]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-13432]


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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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SUMMARY: The Acting 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, 2017, but 
before July 1, 2018. Catalog of Federal Domestic Assistance (CFDA) 
Number: 84.268.

DATES: This notice is effective June 27, 2017.

FOR FURTHER INFORMATION CONTACT: Rene Tiongquico, U.S. Department of 
Education, 830 First Street NE., 11th Floor, Washington, DC 20202. 
Telephone: (202) 377-4270 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: 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 (a 
``margin''). While the interest rate determination for new loans will 
be different from year to year, each of these loans will have a fixed 
interest rate for

[[Page 29063]]

the life of the loan. In each case the calculated rate is capped at a 
maximum interest rate. On Wednesday, May 10, 2017, the United States 
Treasury Department held a 10-year Treasury note auction that resulted 
in a high yield of 2.400%.
    The following chart contains specific information on the 
calculation of the interest rates for Direct Loans first disbursed on 
or after July 1, 2017, but before July 1, 2018. We will 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 7/1/2017 but Before 7/1/2018
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                             Cohort             Index
                                                                                   --------------------------    rate
                                                                                                             -----------   Margin     Fixed    Max. rate
                   Loan type                            Student grade level            First        First      10-Year      (%)     rate  (%)      (%)
                                                                                     disbursed    disbursed    treasury
                                                                                      on/after      before    note  (%)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Subsidized....................................  Undergraduates....................     7/1/2017     7/1/2018      2.400       2.05       4.45       8.25
Unsubsidized..................................  Undergraduates....................     7/1/2017     7/1/2018      2.400       2.05       4.45       8.25
Unsubsidized..................................  Graduate and Professional Students     7/1/2017     7/1/2018      2.400       3.60       6.00       9.50
PLUS..........................................  Parents of Dependent                   7/1/2017     7/1/2018      2.400       4.60       7.00      10.50
                                                 Undergraduates.
PLUS..........................................  Graduate and Professional Students     7/1/2017     7/1/2018      2.400       4.60       7.00      10.50
--------------------------------------------------------------------------------------------------------------------------------------------------------

    For an application for a Direct Consolidation Loan that was 
received by the Department on or after July 1, 2013, the interest rate 
on that loan is the weighted average of the loans being consolidated, 
rounded to the nearest higher \1/8\ of 1 percent. These Direct 
Consolidation Loans do not have an interest rate cap.
    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. Free 
Internet access to the official edition of the Federal Register and the 
Code of Federal Regulations is available via the Federal Digital System 
at www.gpo.gov/fdsys. 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 Adobe 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: June 22, 2017.
Matthew D. Sessa,
Acting Chief Operating Officer, Federal Student Aid.
[FR Doc. 2017-13432 Filed 6-26-17; 8:45 am]
BILLING CODE 4000-01-P