[Federal Register Volume 82, Number 158 (Thursday, August 17, 2017)]
[Notices]
[Pages 39113-39116]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-17425]


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DEPARTMENT OF EDUCATION


Annual Notice of Interest Rates for Federal Student Loans Made 
Under the William D. Ford Federal Direct Loan Program Prior to July 1, 
2013

AGENCY: Federal Student Aid, Department of Education (ED).

ACTION: Notice.

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[[Page 39114]]


DATES: This notice is applicable August 17, 2017.
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 prior to July 1, 2013. For loans that 
have a variable interest rate, the rates announced in this notice are 
in effect for the period July 1, 2017, through June 30, 2018. The Chief 
Operating Officer takes this action to give notice of Direct Loan 
interest rates to the public.

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.
    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: Catalog of Federal Domestic Assistance 
(CFDA) Number: 84.268.
    Section 455(b) of the Higher Education Act of 1965, as amended 
(HEA) (20 U.S.C. 1087e(b)), specifies the interest rates charged to 
borrowers for Federal Direct Subsidized Stafford/Ford Loans (Direct 
Subsidized Loans), Federal Direct Unsubsidized Stafford/Ford Loans 
(Direct Unsubsidized Loans), Federal Direct PLUS Loans (Direct PLUS 
Loans), and Federal Direct Consolidation Loans (Direct Consolidation 
Loans), collectively referred to as ``Direct Loans.'' The interest 
rates for Direct Loans may be variable or fixed.

Variable-Rate Direct Loans

    Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct PLUS 
Loans that were 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 each 
year in accordance with formulas specified in section 455(b) of the 
HEA. The variable interest rate formula that applies to a particular 
loan depends on the date of the first disbursement of the loan or, for 
some Direct Consolidation Loans, the date the application for the loan 
was received. The variable rates are determined annually and are 
effective for each 12-month period beginning July 1 of one year and 
ending June 30 of the following year.
    Except for Direct PLUS Loans that were first disbursed before July 
1, 1998, the variable interest rates for most types of Direct Loans are 
based on formulas that use the bond equivalent rates of the 91-day 
Treasury bills auctioned at the final auction held before June 1 of 
each year, plus a statutory add-on percentage. In each case, the 
calculated rate is capped by a maximum interest rate. The bond 
equivalent rate of the 91-day Treasury bills auctioned on May 30, 2017, 
which is used to calculate the interest rates on these loans, is 0.976 
percent rounded up to 0.98 percent.
    The interest rate for Direct PLUS Loans that were first disbursed 
on or after July 1, 1994, and before July 1, 1998, is based on 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 day of the calendar week ending on or before June 26 of each 
year, plus a statutory add-on percentage. The calculated rate is capped 
by a maximum interest rate. The weekly average of the one-year constant 
maturity Treasury yield published on June 26, 2017, which is used to 
calculate the interest rate on these loans, is 1.22 percent.
    Charts 1 through 4 in this notice show the interest rates for 
variable-rate Direct Loans that are in effect for the period July 1, 
2017, through June 30, 2018.

        Chart 1--Variable-Rate Direct Subsidized and Direct Unsubsidized Loans Interest Rates in Effect for the Period 7/1/2017 Through 6/30/2018
--------------------------------------------------------------------------------------------------------------------------------------------------------
                         Cohort                                             Index rate                Margin                        Total rate
---------------------------------------------------------                -------------------------------------------------------------------------------
                                                          Max. rate  (%)                    In-school,                      In-school,
    First disbursed on or after        First disbursed                    91-day  T-bill      grace,         All other        grace,         All other
                                           before                            rate (%)      deferment (%)   periods  (%)   deferment  (%)   periods  (%)
--------------------------------------------------------------------------------------------------------------------------------------------------------
7/1/1994..........................  7/1/1995............            8.25            0.98            3.10            3.10            4.08            4.08
7/1/1995..........................  7/1/1998............            8.25            0.98            2.50            3.10            3.48            4.08
7/1/1998..........................  7/1/2006............            8.25            0.98            1.70            2.30            2.68            3.28
--------------------------------------------------------------------------------------------------------------------------------------------------------


                       Chart 2--Variable-Rate Direct PLUS Loans Interest Rates in Effect for the Period 7/1/2017 Through 6/30/2018
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                 Cohort                                                             Index rate
-------------------------------------------------------------------------                --------------------------------
                                                                                                              1-year                        Total rate
                                                                          Max. rate  (%)  91-day  T-bill     constant       Margin  (%)         (%)
        First disbursed on or after            First disbursed before                        rate  (%)       treasury
                                                                                                           maturity (%)
--------------------------------------------------------------------------------------------------------------------------------------------------------
7/1/1994..................................  7/1/1998....................            9.00  ..............            1.22            3.10            4.32
7/1/1998..................................  7/1/2006....................            9.00            0.98  ..............            3.10            4.08
--------------------------------------------------------------------------------------------------------------------------------------------------------


[[Page 39115]]


 Chart 3--Variable-Rate Direct Subsidized and Direct Unsubsidized Consolidation Loans Interest Rates in Effect for the Period 7/1/2017 Through 6/30/2018
--------------------------------------------------------------------------------------------------------------------------------------------------------
                         Cohort                                             Index rate                Margin                        Total rate
---------------------------------------------------------                -------------------------------------------------------------------------------
                                                          Max. rate  (%)                    In-School,                      In-School,
    First disbursed on or after        First disbursed                    91-Day  T-Bill      grace,         All other        grace,         All other
                                           before                            rate (%)      deferment (%)   periods  (%)   deferment  (%)   periods  (%)
--------------------------------------------------------------------------------------------------------------------------------------------------------
7/1/1994..........................  7/1/1995............            8.25            0.98            3.10            3.10            4.08            4.08
7/1/1995..........................  7/1/1998............            8.25            0.98            2.50            3.10            3.48            4.08
7/1/1998..........................  10/1/1998...........            8.25            0.98            1.70            2.30            2.68            3.28
--------------------------------------------------------------------------------------------------------------------------------------------------------
    First disbursed on or after     Application received
                                            before
--------------------------------------------------------------------------------------------------------------------------------------------------------
10/1/1998.........................  10/1/1998...........            8.25            0.98            1.70            2.30            2.68            3.28
--------------------------------------------------------------------------------------------------------------------------------------------------------
 Application received on or after   Application received
                                            before
--------------------------------------------------------------------------------------------------------------------------------------------------------
10/1/1998.........................  2/1/1999............            8.25            0.98            2.30            2.30            3.28            3.28
--------------------------------------------------------------------------------------------------------------------------------------------------------


                Chart 4--Variable-Rate Direct PLUS Consolidation Loans Interest Rates in Effect for the Period 7/1/2017 Through 6/30/2018
--------------------------------------------------------------------------------------------------------------------------------------------------------
                            Cohort                                                 Index rate                  Margin                  Total rate
--------------------------------------------------------------             -----------------------------------------------------------------------------
                                                                                            1-year
                                                                Max. rate    91-day  T-    constant    In-school,   All other    In-School,   All other
     First disbursed on or after       First disbursed before      (%)       Bill rate     treasury      grace,      periods       grace,      periods
                                                                                (%)        maturity    deferment       (%)       deferment       (%)
                                                                                             (%)          (%)                       (%)
--------------------------------------------------------------------------------------------------------------------------------------------------------
7/1/1994............................  7/1/1998...............         9.00  ...........         1.22         3.10         3.10         4.32         4.32
7/1/1998............................  10/1/1998..............         9.00         0.98  ...........         3.10         3.10         4.08         4.08
--------------------------------------------------------------------------------------------------------------------------------------------------------
     First disbursed on or after        Application received
                                               before
--------------------------------------------------------------------------------------------------------------------------------------------------------
10/1/1998...........................  10/1/1998..............         9.00         0.98  ...........         3.10         3.10         4.08         4.08
--------------------------------------------------------------------------------------------------------------------------------------------------------
  Application received on or after      Application received
                                               before
--------------------------------------------------------------------------------------------------------------------------------------------------------
10/1/1998...........................  2/1/1999...............         8.25         0.98  ...........         2.30         2.30         3.28         3.28
--------------------------------------------------------------------------------------------------------------------------------------------------------

Fixed-Rate Direct Loans

    Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct PLUS 
Loans first disbursed on or after July 1, 2006, and before July 1, 
2013, and Direct Consolidation Loans for which the application was 
received on or after February 1, 1999, have fixed interest rates. The 
fixed interest rates for Direct Subsidized Loans, Direct Unsubsidized 
Loans, and Direct PLUS Loans first disbursed on or after July 1, 2006, 
and before July 1, 2013, and Direct Consolidation Loans for which the 
application was received on or after February 1, 1999 may be found in a 
Federal Register notice published on October 3, 2016 (81 FR 68003), 
under the heading ``Chart 5--Fixed-Rate Direct Subsidized, Direct 
Unsubsidized, Direct PLUS Loans, and Direct Consolidation Loans First 
Disbursed On or After 7/1/2006 and Before 7/1/2013.''
    Interest rates for Direct Subsidized Loans, Direct Unsubsidized 
Loans, and Direct PLUS Loans first disbursed on or after July 1, 2013, 
and before July 1, 2018, are published in earlier Federal Register 
notices, as follows:
     For loans first disbursed on or after July 1, 2013, and 
prior to July 1, 2014, see 78 FR 59011.
     For loans first disbursed on or after July 1, 2014, and 
prior to July 1, 2015, see 79 FR 37301.
     For loans first disbursed on or after July 1, 2015, and 
prior to July 1, 2016, see 80 FR 42488.
     For loans first disbursed on or after July 1, 2016, and 
prior to July 1, 2017, see 81 FR 38159.
     For loans first disbursed on or after July 1, 2017, and 
prior to July 1, 2018, see 82 FR 29062.
    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.


[[Page 39116]]


    Dated: August 14, 2017.
A. Wayne Johnson,
Chief Operating Officer, Federal Student Aid.
[FR Doc. 2017-17425 Filed 8-16-17; 8:45 am]
BILLING CODE P4000-01-P