New Variable Interest Rates - July 1, 1999 - June 30, 2000 |
LOUISIANA STUDENT FINANCIAL ASSISTANCE COMMISSION
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TO: |
Lenders and Schools |
DATE: |
June 4, 1999 |
TOPIC: |
New Variable Interest Rates - July 1, 1999 - June 30, 2000 |
The final auction of 91-day Treasury Bills held prior to June 1 occurred on May 24, 1999, and the bond equivalent rate was 4.621 which rounds to 4.62%.
For converted variable-rate 8/10% loans that were subject to "windfall profits" and have been converted to a variable interest rate capped at 10%:
4.62% + 3.25% = 7.87%
For converted variable-rate 7%, 8%, 9%, or 10% (converted 8/10% loans which have reached the 49th month of the repayment period), that were subject to "windfall profits" and have been converted to a variable interest rate capped at the original fixed interest rate, the following rates apply:
4.62 + 3.1% = 7.72%
Original Interest Rate Variable Interest Rate
7% 7%
8% 7.72%
9% 7.72%
10% 7.72%
For regular variable-rate loans made to "new" borrowers for which the first disbursement is on/after October 1, 1992 but prior to July 1, 1994 or on/after July 1, 1994 for a period of enrollment ending prior to July 1, 1994, capped at 9%:
4.62% + 3.1% = 7.72%
For loans made to all borrowers, regardless of prior borrowing, for periods of enrollment that include or begin on/after July 1, 1994 for which the first disbursement is made on-after July 1, 1994, but prior to July 1, 1995, capped at 8.25%:
4.62 + 3.1% = 7.72%: the rate is 7.72%
For loans made to all borrowers, regardless of prior borrowing, on/after July 1, 1995, but prior to July 1, 1998, capped at 8.25%:
during the in-school, grace, and deferment periods
4.62% + 2.5% = 7.12%
during all other periods, capped at 8.25%.
4.62% + 3.1% = 7.72%: the rate is 7.72%
For loans made to all borrowers, regardless of prior borrowing, on/after 7/1/98 and before 7/1/2002 capped at 8.25%:
during the in-school, grace, and deferment periods
4.62% + 1.7% = 6.32%
during all other periods, capped at 8.25%.
4.62% + 2.3% = 6.92%
Federal PLUS and Federal SLS Variable Interest Rates
The final auction of 52-week Treasury Bills held prior to June 1 occurred on May 25, 1999, and the bond equivalent rate was 4.879% which rounds to 4.88%.
*For variable rate PLUS and SLS loans made prior to October 1, 1992, capped at 12%:
4.88% + 3.25% = 8.13%
*For PLUS loans made on/after October 1, 1992 but prior to July 1, 1994, capped at 10%; for PLUS loans made on/after July 1, 1994, but prior to July 1, 1998, capped at 9%; and for SLS loans made on/after October 1, 1992 for a period of enrollment beginning prior to July 1, 1994, capped at 11%:
4.88% + 3.1% = 7.98%
*PLUS/SLS loans are not eligible for special allowance payments during the four quarters ending September 30, 1999, December 31, 1999, March 31, 2000, and June 30, 2000.