79 FR 126 pgs. 37301-37302 - 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
Type: NOTICEVolume: 79Number: 126Pages: 37301 - 37302
Pages: 37301, 37302FR document: [FR Doc. 2014-15430 Filed 6-30-14; 8:45 am]
Agency: Education Department
Official PDF Version: PDF Version
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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.
Catalog of Federal Domestic Assistance (CFDA) Number: 84.268.
DATES:
This notice is effective July 1, 2014.
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 on or after July 1, 2014, through June 30, 2015.
FOR FURTHER INFORMATION CONTACT:
Ian Foss, U.S. Department of Education, 830 First Street NE., Room 114I1, Washington, DC 20202. Telephone: (202) 377-3681 or by email: ian.foss@ed.gov.
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:
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. Therefore, while the interest rate determination for new loans will be different from year to year, such loans will have a fixed interest rate for the life of the loan. In each case, the calculated rate is capped by a maximum interest rate.
The following chart contains specific information on the calculation of the interest rates for Direct Loans first disbursed on or after July 1, 2014, and through June 30, 2015. We publish a separate notice containing the interest rates for Direct Loans that were made in prior years.
| Loan type | Student grade level | Cohort | First disbursed on/after | First disbursed before | Index rate | 10-Year treasury note | Margin (percent) | Fixed rate (percent) | Max. rate (percent) |
|---|---|---|---|---|---|---|---|---|---|
| Subsidized | Undergraduates | 7/1/2014 | 7/1/2015 | 2.61 | 2.05 | 4.66 | 8.25 | ||
| Unsubsidized | Undergraduates | 7/1/2014 | 7/1/2015 | 2.61 | 2.05 | 4.66 | 8.25 | ||
| Unsubsidized | Graduate and Professional Students | 7/1/2014 | 7/1/2015 | 2.61 | 3.60 | 6.21 | 9.50 | ||
| PLUS | Parents of Dependent Undergraduates | 7/1/2014 | 7/1/2015 | 2.61 | 4.60 | 7.21 | 10.50 | ||
| PLUS | Graduate and Professional Students | 7/1/2014 | 7/1/2015 | 2.61 | 4.60 | 7.21 | 10.50 |
If an application for a Direct Consolidation Loan is received by the Department on or after July 1, 2013, the interest rate on that loan is the weighted average of the consolidated loans, rounded up to the nearest higher 1⁄8 of 1 percent. Such Direct Consolidation Loans do not have an interest rate cap.
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Authority:
20 U.S.C. 1087, et seq.
Dated: June 26, 2014.
James F. Manning,
Chief of Staff of Federal Student Aid, delegated the authority to perform the functions and duties of the Chief Operating Officer of Federal Student Aid.
[FR Doc. 2014-15430 Filed 6-30-14; 8:45 am]
BILLING CODE 4000-01-P