[Federal Register Volume 88, Number 226 (Monday, November 27, 2023)]
[Notices]
[Pages 82866-82869]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-26054]


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DEPARTMENT OF EDUCATION


Annual Notice of Interest Rates for Variable-Rate Federal Student 
Loans Made Under the Federal Family Education Loan Program Prior to 
July 1, 2010

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 loans made under the Federal Family Education 
Loan (FFEL) Program, Assistance Listing Number 84.032, that have 
variable interest rates. The rates announced in this notice are in 
effect for the period July 1, 2023, through June 30, 2024.

FOR FURTHER INFORMATION CONTACT: Travis Sturlaugson, U.S. Department of 
Education, 830 First Street NE, Washington, DC 20202. Telephone:

[[Page 82867]]

202-377-4174. Email: [email protected].
    If you are deaf, hard of hearing, or have a speech disability and 
wish to access telecommunications relay services, please dial 7-1-1.

SUPPLEMENTARY INFORMATION: Section 427A of the Higher Education Act of 
1965, as amended (HEA) (20 U.S.C. 1077a), provides formulas for 
determining the interest rates charged to borrowers on loans made under 
the FFEL Program, including Federal Subsidized and Unsubsidized 
Stafford Loans (Stafford Loans), Federal PLUS Loans (PLUS Loans), 
Federal Consolidation Loans (Consolidation Loans), and Federal 
Supplemental Loans for Students (SLS Loans). No new loans have been 
made under the FFEL Program since June 30, 2010.
    The FFEL Program includes loans with variable interest rates that 
change each year and loans with fixed interest rates that remain the 
same for the life of the loan. For loans with a variable interest rate, 
the specific interest rate formula that applies to a particular loan 
depends on the date of the first disbursement of the loan or, in the 
case of a Consolidation Loan, the date the application for the loan was 
received. If a loan has a variable interest rate, a new rate is 
determined annually and is in effect during the period from July 1 of 
one year through June 30 of the following year.
    This notice announces the interest rates for variable-rate FFEL 
Program loans that will be in effect during the period from July 1, 
2023, through June 30, 2024. Interest rates for fixed-rate FFEL Program 
loans may be found in a Federal Register notice published on September 
15, 2015 (80 FR 55342).
    For the majority of variable-rate FFEL Program loans, the annual 
interest rate is equal to the lesser of--
    (1) The bond equivalent rate of the 91-day Treasury bills auctioned 
at the final auction held before June 1 of each year, plus a statutory 
add-on percentage; or
    (2) A statutorily established maximum interest rate.
    The bond equivalent rate of the 91-day Treasury bills auctioned on 
May 30, 2023, is 5.462 percent, rounded to 5.46 percent.
    For PLUS Loans first disbursed before July 1, 1998, and for all SLS 
Loans, the annual interest rate is equal to the lesser of--
    (1) 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 calendar week ending on or before June 26 of each 
year, plus a statutory add-on percentage; or
    (2) A statutorily established maximum interest rate.
    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 calendar week ending on or before June 26, 2023, 
is 5.26 percent.
    For Consolidation Loans that have a variable interest rate, the 
annual interest rate for the portion of a Consolidation Loan that 
repaid loans other than loans made under the Health Education 
Assistance Loans (HEAL) Program is equal to--
    (1) The bond equivalent rate of the 91-day Treasury bill auctioned 
at the final auction held before June 1 of each year, plus a statutory 
add-on percentage; or
    (2) A statutorily established maximum interest rate.
    If a Consolidation Loan (whether a variable-rate loan or a fixed-
rate loan) repaid loans made under the HEAL Program, the interest rate 
on the portion of the Consolidation Loan that repaid HEAL loans is a 
variable rate that is equal to the average of the bond equivalent rates 
of the 91-day Treasury bills auctioned for the quarter ending June 30, 
plus a statutory add-on percentage. For the portion of a Consolidation 
Loan that repaid HEAL loans, there is no maximum interest rate.
    The average of the bond equivalent rates of the 91-day Treasury 
bills auctioned for the quarter ending on June 30, 2023, is 5.27 
percent.
    The statutory add-on percentages and maximum interest rates vary 
depending on loan type and when the loan was first disbursed. In 
addition, the add-on percentage for certain Stafford Loans is different 
depending on whether the loan is in an in-school, grace, or deferment 
status, or in any other status. If the interest rate calculated in 
accordance with the applicable formula exceeds the statutory maximum 
interest rate, the statutory maximum rate applies.
    Charts 1 through 4 show the interest rate formulas that are used to 
determine the interest rates for all variable-rate FFEL Program loans 
and the interest rates that are in effect during the 12-month period 
from July 1, 2023, through June 30, 2024. Unless otherwise indicated, 
the cohorts shown in each chart include all borrowers, regardless of 
prior borrowing.
    Chart 1 shows the interest rates for loans with rates based on the 
91-day Treasury bill, with the exception of ``converted'' variable-rate 
Federal Stafford Loans and certain Federal Consolidation Loans.
    Chart 2 shows the interest rates for loans with rates based on the 
weekly average of the one-year constant maturity Treasury yield.
    Chart 3 shows the interest rates for ``converted'' variable-rate 
Federal Stafford Loans. These are loans that originally had varying 
fixed interest rates.
    Finally, Chart 4 shows the interest rates for variable-rate Federal 
Consolidation Loans, and for the portion of any Federal Consolidation 
Loan that repaid loans made under the HEAL Program.

                         Chart 1--Subsidized Federal Stafford Loans, Unsubsidized Federal Stafford Loans, and Federal Plus Loans
                                                      [Interest rate based on 91-day Treasury bill]
Loan type                       Cohort..........   91-Day T-bill              Add-on (%)                Maximum rate  Interest rate 07/01/23 through 06/
                                                   rate 05/30/23                                                 (%)               30/24 (%)
                                                             (%)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Subsidized Stafford,            First disbursed             5.46  1.70 (in-school,  2.30 (any other             8.25  7.16 (in-school,  7.76 (any other
 Unsubsidized Stafford.          on/after 07/01/                   grace,            status).                          grace,            status).
                                 98 and before                     deferment).                                         deferment).
                                 07/01/06.
                                                 -------------------------------------------------------------------------------------------------------
PLUS..........................  First disbursed             5.46                 3.10                           9.00                 8.56
                                 on/after 07/01/
                                 98 and before
                                 07/01/06.
                                                 -------------------------------------------------------------------------------------------------------

[[Page 82868]]

 
Subsidized Stafford,            First disbursed             5.46  2.50 (in-school,  3.10 (any other             8.25  7.96 (in-school,  8.25 (any other
 Unsubsidized Stafford.          on/after 07/01/                   grace,            status).                          grace,            status).
                                 95 and before                     deferment).                                         deferment).
                                 07/01/98.
                                                 -------------------------------------------------------------------------------------------------------
Subsidized Stafford,            First disbursed             5.46                 3.10                           8.25                 8.25
 Unsubsidized Stafford.          on/after 07/01/
                                 94 and before
                                 07/01/95, for a
                                 period of
                                 enrollment that
                                 included or
                                 began on or
                                 after 07/01/94.
                                                 -------------------------------------------------------------------------------------------------------
Subsidized Stafford,            First disbursed             5.46                 3.10                           9.00                 8.56
 Unsubsidized Stafford.          on/after 10/01/
                                 92 and before
                                 07/01/94; and
                                 First disbursed
                                 on/after 07/01/
                                 94, for a
                                 period of
                                 enrollment
                                 ending before
                                 07/01/94 (new
                                 borrowers).
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                                    Chart 2--Federal Plus Loans and SLS Loans
              [Interest rate based on weekly average of one-year constant maturity Treasury yield]
----------------------------------------------------------------------------------------------------------------
                                            Weekly average of
                                             1-year constant
                                            maturity Treasury
                                              yield for last                    Maximum rate   Interest rate 07/
       Loan type              Cohort          calendar week      Add-on (%)          (%)       01/23 through 06/
                                               ending on or                                        30/24 (%)
                                             before 06/26/23
                                                   (%)
----------------------------------------------------------------------------------------------------------------
PLUS..................  First disbursed on/              5.26            3.10            9.00               8.36
                         after 07/01/94
                         and before 07/01/
                         98.
PLUS..................  First disbursed on/              5.26            3.10           10.00               8.36
                         after 10/01/92
                         and before 07/01/
                         94.
SLS...................  First disbursed on/              5.26            3.10           11.00               8.36
                         after 10/01/92,
                         for a period of
                         enrollment
                         beginning before
                         07/01/94.
PLUS, SLS.............  First disbursed                  5.26            3.25           12.00               8.51
                         before 10/01/92.
----------------------------------------------------------------------------------------------------------------


                                 Chart 3--``Converted'' Variable-Rate Subsidized and Unsubsidized Federal Stafford Loans
                                                      [Interest rate based on 91-day Treasury bill]
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                                                                                                                                           Interest rate
                                                                 Original fixed interest   91-Day T-bill                   Maximum rate      07/01/23
              Loan type                         Cohort            rate (later converted    rate 05/30/23    Add-on (%)          (%)       through 06/30/
                                                                  to variable rate) (%)         (%)                                           24 (%)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Subsidized Stafford, Unsubsidized      First disbursed on or     8.00, increasing to                5.46            3.10           10.00            8.56
 Stafford.                              after 07/23/92 and        10.00.
                                        before 07/01/94 (prior
                                        borrowers).
Subsidized Stafford, Unsubsidized      First disbursed on or     9.00...................            5.46            3.10            9.00            8.56
 Stafford.                              after 07/23/92 and
                                        before 07/01/94 (prior
                                        borrowers).
Subsidized Stafford, Unsubsidized      First disbursed on or     8.00...................            5.46            3.10            8.00            8.00
 Stafford.                              after 07/23/92 and
                                        before 07/01/94 (prior
                                        borrowers).

[[Page 82869]]

 
Subsidized Stafford, Unsubsidized      First disbursed on or     7.00...................            5.46            3.10            7.00            7.00
 Stafford.                              after 07/23/92 and
                                        before 07/01/94 (prior
                                        borrowers).
Subsidized Stafford, Unsubsidized      First disbursed on or     8.00, increasing to                5.46            3.25           10.00            8.71
 Stafford.                              after 07/23/92 and        10.00.
                                        before 10/01/92 (new
                                        borrowers).
Subsidized Stafford, Unsubsidized      First disbursed on or     8.00, increasing to                5.46            3.25           10.00            8.71
 Stafford.                              after 07/01/88 and        10.00.
                                        before 07/23/92.
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                                                          Chart 4--Federal Consolidation Loans
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                                                                                          Average of the
                                                                                               bond
                                                                                            equivalent
                                                                           91-Day T-bill   rates of the                                    Interest rate
       Consolidation loan component                    Cohort              rate 05/30/23  91-day T-bills    Add-on (%)     Maximum rate      07/01/23
                                                                                (%)        auctioned for                        (%)       through 06/30/
                                                                                            the quarter                                       24 (%)
                                                                                           ending 06/30/
                                                                                              23 (%)
--------------------------------------------------------------------------------------------------------------------------------------------------------
Portion of loan that repaid loans other     Application received on/                5.46             N/A            3.10            8.25            8.25
 than HEAL loans.                            after 11/13/97 and before
                                             10/01/98.
Portion of the loan that repaid HEAL loans  Application received on/                 N/A            5.27            3.00            None            8.27
                                             after 11/13/97.
--------------------------------------------------------------------------------------------------------------------------------------------------------

    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 
Federal Regulations at www.govinfo.gov. 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 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. 1071 et seq.

Richard Cordray,
Chief Operating Officer, Federal Student Aid.
[FR Doc. 2023-26054 Filed 11-24-23; 8:45 am]
BILLING CODE 4000-01-P