[Federal Register Volume 79, Number 126 (Tuesday, July 1, 2014)]
[Notices]
[Pages 37301-37302]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-15430]
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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.
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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: [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: 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.
Fixed-Rate Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct PLUS Loans First Disbursed on or After 7/1/2014 and Through 6/30/2015
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Cohort Index rate
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Loan type Student grade level First First Margin Fixed rate Max. rate
disbursed on/ disbursed 10-Year (percent) (percent) (percent)
after before treasury note
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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 7/1/2014 7/1/2015 2.61 3.60 6.21 9.50
Professional
Students.
PLUS.............................. Parents of Dependent 7/1/2014 7/1/2015 2.61 4.60 7.21 10.50
Undergraduates.
PLUS.............................. Graduate and 7/1/2014 7/1/2015 2.61 4.60 7.21 10.50
Professional
Students.
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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.
Electronic Access to This Document: The official version of this
document is the document published in the Federal Register. Free
Internet access to the
[[Page 37302]]
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
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You may also access documents of the Department published in the
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www.federalregister.gov. Specifically, through the advanced search
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by the Department.
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