[Federal Register Volume 82, Number 122 (Tuesday, June 27, 2017)]
[Notices]
[Pages 29062-29063]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-13432]
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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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SUMMARY: The Acting 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, 2017, but
before July 1, 2018. Catalog of Federal Domestic Assistance (CFDA)
Number: 84.268.
DATES: This notice is effective June 27, 2017.
FOR FURTHER INFORMATION CONTACT: Rene Tiongquico, U.S. Department of
Education, 830 First Street NE., 11th Floor, Washington, DC 20202.
Telephone: (202) 377-4270 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.
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 (a
``margin''). While the interest rate determination for new loans will
be different from year to year, each of these loans will have a fixed
interest rate for
[[Page 29063]]
the life of the loan. In each case the calculated rate is capped at a
maximum interest rate. On Wednesday, May 10, 2017, the United States
Treasury Department held a 10-year Treasury note auction that resulted
in a high yield of 2.400%.
The following chart contains specific information on the
calculation of the interest rates for Direct Loans first disbursed on
or after July 1, 2017, but before July 1, 2018. We will 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 7/1/2017 but Before 7/1/2018
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Cohort Index
-------------------------- rate
----------- Margin Fixed Max. rate
Loan type Student grade level First First 10-Year (%) rate (%) (%)
disbursed disbursed treasury
on/after before note (%)
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Subsidized.................................... Undergraduates.................... 7/1/2017 7/1/2018 2.400 2.05 4.45 8.25
Unsubsidized.................................. Undergraduates.................... 7/1/2017 7/1/2018 2.400 2.05 4.45 8.25
Unsubsidized.................................. Graduate and Professional Students 7/1/2017 7/1/2018 2.400 3.60 6.00 9.50
PLUS.......................................... Parents of Dependent 7/1/2017 7/1/2018 2.400 4.60 7.00 10.50
Undergraduates.
PLUS.......................................... Graduate and Professional Students 7/1/2017 7/1/2018 2.400 4.60 7.00 10.50
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For an application for a Direct Consolidation Loan that was
received by the Department on or after July 1, 2013, the interest rate
on that loan is the weighted average of the loans being consolidated,
rounded to the nearest higher \1/8\ of 1 percent. These Direct
Consolidation Loans do not have an interest rate cap.
Accessible Format: Individuals with disabilities can obtain this
document in an accessible format (e.g., braille, large print,
audiotape, or compact disc) by contacting the person listed under FOR
FURTHER INFORMATION CONTACT.
Electronic Access to This Document: The official version of this
document is the document published in the Federal Register. Free
Internet access to the 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
Register, in text or Adobe 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. 1087, et seq.
Dated: June 22, 2017.
Matthew D. Sessa,
Acting Chief Operating Officer, Federal Student Aid.
[FR Doc. 2017-13432 Filed 6-26-17; 8:45 am]
BILLING CODE 4000-01-P