[Federal Register Volume 88, Number 226 (Monday, November 27, 2023)]
[Notices]
[Pages 82863-82866]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-26052]


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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.

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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, Assistance Listing Number 84.268, with first disbursement 
dates on or after July 1, 2023, and before July 1, 2024.

FOR FURTHER INFORMATION CONTACT: Travis Sturlaugson, U.S. Department of 
Education, 830 First Street NE, Washington, DC 20202. Telephone: 202-
377-4174 or by email: [email protected].
    If you are deaf, hard of hearing, or have a speech disability and 
wish to

[[Page 82864]]

access telecommunications relay services, please dial 7-1-1.

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, 2023, and before July 1, 
2024, 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 10, 2023, the United States Treasury Department held a 10-
year Treasury note auction that resulted in a high yield of 3.448 
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, 2023, and before July 1, 2024.

     Chart 1--Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct Plus Loans First Disbursed on or After 07/01/2023 and Before 07/01/2024
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                                                                                              10-year
                                                                                           treasury note                   Maximum rate   Fixed interest
                   Loan type                                  Borrower type               high yield 05/    Add-on (%)          (%)          rate (%)
                                                                                            10/2023 (%)
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Direct Subsidized Loans........................  Undergraduate students.................           3.448            2.05            8.25            5.50
Direct Unsubsidized Loans......................
Direct Unsubsidized Loans \1\..................  Graduate and professional students.....           3.448            3.60            9.50            7.05
Direct PLUS Loans..............................  Parents of dependent undergraduate                3.448            4.60           10.50            8.05
                                                  students.
                                                 Graduate and professional students.....
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    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, 2023, through June 30, 2024, 
with the fixed interest rates for loans first disbursed during each 
previous 12-month period from July 1, 2013, through June 30, 2023.
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    \1\ Graduate and professional students are not eligible to 
receive Direct Subsidized Loans.

                         Chart 2--Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct Plus Loans First Disbursed on or After 07/01/2013 and Before 07/01/2024
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                         First disbursed                                          Fixed interest rates (%)
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                                                                                               Direct
                                                                     Direct Subsidized      Unsubsidized
                                                                       Loans, Direct           Loans,        Direct PLUS                          Federal Register notice
                    On/after                          Before        Unsubsidized Loans,     (graduate or        Loans
                                                                       (undergraduate       professional
                                                                         students)            students)
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07/01/2023......................................      07/01/2024                     5.50            7.05            8.05  N/A.
07/01/2022......................................      07/01/2023                     4.99            6.54            7.54  87 FR 50326 (August 16, 2022).

[[Page 82865]]

 
07/01/2021......................................      07/01/2022                     3.73            5.28            6.28  86 FR 44003 (August 11, 2021).
07/01/2020......................................      07/01/2021                     2.75            4.30            5.30  85 FR 48229 (August 10, 2020).
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).
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Fixed-Rate Direct Subsidized Loans, Direct Unsubsidized Loans, and 
Direct PLUS Loans First Disbursed on or After July 1, 2006, and Before 
July 2, 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
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                                                                       First           First
             Loan type                      Borrower type          disbursed on/     disbursed     Interest rate
                                                                       after          before            (%)
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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 graduate       07/01/2006      07/01/2013            6.80
                                      or professional students.
PLUS...............................  Graduate or professional         07/01/2006      07/01/2013            7.90
                                      students and parents of
                                      dependent undergraduate
                                      students.
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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.
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    \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.

 Chart 4--Direct Consolidation Loans Made Based on Applications Received
                         on or After 02/01/1999
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                                                              Maximum
      Application received          Interest rate (%)      interest rate
                                                                (%)
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On/after 07/01/2013............  Weighted average of the            None
                                  interest rates on the
                                  loans consolidated,
                                  rounded to the nearest
                                  higher one-eighth of
                                  one percent.
On/after 02/01/1999 and before   (same as above)........           8.25%
 07/01/2013.
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[[Page 82866]]

    Accessible Format: On request to the program contact person listed 
under FOR FURTHER INFORMATION CONTACT, individuals with disabilities 
can obtain this document in an accessible format. The Department will 
provide the requestor with an accessible format that may include Rich 
Text Format (RTF) or text format (txt), a thumb drive, an MP3 file, 
braille, large print, audiotape, or compact disc, or other accessible 
format.
    Electronic Access to This Document: The official version of this 
document is the document published in the Federal Register. You may 
access the official edition of the Federal Register and the Code of 
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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.

Richard Cordray,
Chief Operating Officer, Federal Student Aid.
[FR Doc. 2023-26052 Filed 11-24-23; 8:45 am]
BILLING CODE 4000-01-P