[Federal Register Volume 89, Number 167 (Wednesday, August 28, 2024)]
[Notices]
[Pages 68883-68885]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-19311]
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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, 2024, through June 30, 2025.
FOR FURTHER INFORMATION CONTACT: Travis Sturlaugson, U.S. Department of
Education, 830 First Street NE, Washington, DC 20202. Telephone: 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,
2024, through June 30, 2025. 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 28, 2024, is 5.40 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, 2024,
is 5.10 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, 2024, is 5.39
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, 2024, through June 30, 2025. 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.
[[Page 68884]]
Chart 1--Subsidized Federal Stafford Loans, Unsubsidized Federal Stafford Loans, and Federal PLUS Loans
[Interest rate based on 91-day Treasury bill]
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Loan type Cohort.......... 91-day T-bill Add-on (%) Maximum rate Interest rate 07/01/24 through 06/
rate 05/28/24 (%) 30/25 (%)
(%)
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Subsidized Stafford, First disbursed 5.40 1.70 (in-school, 2.30 (any other. 8.25 7.10 (in-school, 7.70 (any other
Unsubsidized Stafford. on/after 07/01/ grace, status)......... grace, status).
98 and before deferment). deferment).
07/01/06.
PLUS.......................... First disbursed 5.40 3.10 9.00 8.50.
on/after 07/01/
98 and before
07/01/06.
Subsidized Stafford, First disbursed 5.40 2.50 (in-school, 3.10 (any other. 8.25 7.90 (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 5.40 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 5.40 3.10 9.00 8.50.
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]
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Weekly average
of 1-year
constant
maturity Interest rate
Treasury yield Maximum rate 07/01/24
Loan type Cohort for last Add-on (%) (%) through 06/30/
calendar week 25 (%)
ending on or
before 06/26/
24 (%)
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PLUS.................... First disbursed on/ 5.10 3.10 9.00 8.20
after 07/01/94 and
before 07/01/98.
PLUS.................... First disbursed on/ 5.10 3.10 10.00 8.20
after 10/01/92 and
before 07/01/94.
SLS..................... First disbursed on/ 5.10 3.10 11.00 8.20
after 10/01/92, for a
period of enrollment
beginning before 07/
01/94.
PLUS SLS................ First disbursed before 5.10 3.25 12.00 8.35
10/01/92.
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[[Page 68885]]
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 07/01/24
Loan type Cohort rate (later converted rate 05/28/24 Add-on (%) (%) through 06/30/
to variable rate) (%) (%) 25 (%)
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Subsidized Stafford, Unsubsidized First disbursed on or 8.00, increasing to 5.40 3.10 10.00 8.50
Stafford. after 07/23/92 and 10.00.
before 07/01/94 (prior
borrowers).
Subsidized Stafford, Unsubsidized First disbursed on or 9.00................... 5.40 3.10 9.00 8.50
Stafford. after 07/23/92 and
before 07/01/94 (prior
borrowers).
Subsidized Stafford, Unsubsidized First disbursed on or 8.00................... 5.40 3.10 8.00 8.00
Stafford. after 07/23/92 and
before 07/01/94 (prior
borrowers).
Subsidized Stafford, Unsubsidized First disbursed on or 7.00................... 5.40 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 5.40 3.25 10.00 8.65
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 5.40 3.25 10.00 8.65
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 05/28/24 91-day T-bills Add-on (%) Maximum rate 07/01/24
(%) auctioned for (%) through 06/30/
the quarter 25 (%)
ending 06/30/
24 (%)
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Portion of loan that repaid loans other Application received on/ 5.40 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 5.39 3.00 None 8.39
after 11/13/97.
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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
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You may also access documents of the Department published in the
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Program Authority: 20 U.S.C. 1071 et seq.
Denise Carter,
Acting Chief Operating Officer, Federal Student Aid.
[FR Doc. 2024-19311 Filed 8-27-24; 8:45 am]
BILLING CODE 4000-01-P