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Modified Special Allowance (SAP) Codes for ED Form 799 and SAP Rates Calculated from the Quarter Ending December 31, 1999 |
LOUISIANA STUDENT FINANCIAL ASSISTANCE COMMISSION
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TO: |
Lenders and Schools |
DATE: |
January 5, 2000 |
TOPIC: |
Modified Special Allowance (SAP) Codes for ED Form 799 and SAP Rates Calculated from the Quarter Ending December 31, 1999 |
To assure that your Common Manual remains current, please record this document on your LPM/LPB index, and retain it in Appendix E of your manual.
The Higher Education Act of 1965 was recently amended to change the method of
calculating special allowance for loans first disbursed on/after January
1, 2000. The calculation will now use the 3-month commercial paper rate. This
resulted in a modification to the Special Allowance (SAP) codes that are used in
the Lender’s Interest and Special Allowance Request and Report (ED Form 799).
Beginning with the ED Form 799 for the quarter ending March, 2000, lenders will
be required to use the following SAP codes (in addition to the existing codes):
SAP Code | Loan Status |
CA | In-School, Grace and Deferment |
SAP Code | Loan Status |
CB | In Repayment or Forbearance |
SAP Code | Loan Status |
CC | N/A |
SAP Code | Loan Status |
CD | N/A |
Please note that there has been no change to loans disbursed with tax-exempt funds. You should continue to report these loans using the existing SAP codes. If you have any questions, please call the U.S. Department of Education at (202) 708-9776, or e-mail them at OSFA_LR@ed.gov.
Annual Rate |
Allowance at Annual Rate |
Quarterly Factor |
Loans prior to 10/1/81 | ||
7% | .0175 | .004375 |
9% | .0000 | .000000 |
Loans from 10/1/81 to 11/16/86 | ||
7% | .0172 | .004300 |
8% | .0072 | .001800 |
9-14% | .0000 | .000000 |
Loans from 11/16/86 to 10/1/92 | ||
7% | .0147 | .003675 |
7.72% | .0075 | .001875 |
7.87% | .006 | .001500 |
8% | .0047 | .001175 |
9-14% | .0000 | .000000 |
Loans from 10/1/92 to 7/1/98 | ||
6% | .0232 | .005800 |
7% | .0132 | .003300 |
7.72% | .006 | .001500 |
7.98% | .0034 | .000850 |
8% | .0032 | .000800 |
9-14% | .0000 | .000000 |
Loans from 7/1/95 to 7/1/98 only during in-school, grace and deferment | ||
7.12% | .006 | .001500 |
Loans from 7/1/98 to 7/1/03 only during in-school, grace and deferment | ||
6.32% | .011 | .002750 |
Loans from 7/1/98 to 7/1/03 except during in-school, grace and deferment | ||
6.92% | .011 | .002750 |
Tax-exempt Loans
Annual Rate |
Allowance at Annual Rate |
Quarterly Factor |
Tax-exempt loans prior to 10/1/81 | ||
7% | .025 | .00625 |
9% | .005 | .00125 |
Tax-exempt loans from 10/1/81 | ||
6% | .035 | .008750 |
6.32% | .0318 | .007950 |
6.92% | .0258 | .006450 |
7% | .025 | .006250 |
7.12% | .0238 | .005950 |
7.72% | .0178 | .004450 |
7.87% | .0163 | .004075 |
7.98% | .0152 | .003800 |
8% | .015 | .003750 |
9% | .005 | .001250 |
10%-14% | .0000 | .0000 |
The average bond equivalent rate of the ninety-one day Treasury bills auctioned during the quarter ending December 31, 1999 is 5.22%.