LOUISIANA STUDENT FINANCIAL ASSISTANCE COMMISSION
OFFICE OF STUDENT FINANCIAL ASSISTANCE

LOAN PROGRAM BULLETIN

TO:

Lenders

DATE:

April 9, 2003

TOPIC:

Special Allowance Rates Calculated from
Quarter Ending March 31, 2003

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.

Applicable Annual Interest Rate
Special Allowance at Annual Rate
Special Allowance For 3-Month Period
Loans prior to 10/1/81    
7%
.00000
.000000
9%
.00000
.000000
     
Loans from 10/1/81 to 11/16/86    
7% - 14%
.0000
.000000
     
Loans from 11/16/86 to 10/1/92    
4.86% 1,2,3
.0000
.000000
5.01% 4
.0000
.000000
7-14%
.0000
.000000
     
Loans from 10/1/92 to 7/1/98    
4.86% 5,6,7
.0000
.000000

 

 

 

 

 

 

 

 

 

 

1 Fixed-rate 7% Stafford loans (1992 Amendments).

2 (a)Fixed-rate 8% Stafford loans, and (b) 8/10 Stafford loans (prior to the 49th month of repayment) (1992 Amendments).

3 (a) Fixed-rate 9% Stafford loans, and (b) 8/10% Stafford loans (on/after the 49th month of repayment ) (1992 Amendments).

4 Fixed-rate 8/10% Stafford loans (on/after the 49th month of repayment) (1986 Amendments).

5 Fixed-rate 7% Stafford loans (1992 Amendments).

6 (a) Fixed-rate 8% Stafford loans, and (b) 8/10% Stafford loans (prior to the 49th month of repayment) that were subject to the "windfall profits" provisions of 427A(i)(3) of the Act and that have been converted to a variable rate (1992 Amendments).

7 (a) All Stafford loans made for periods of enrollment that either begin on/after 7/1/94 or include that date for which the first disbursement is made on/after 7/1/94 but prior to 7/1/95, (b) Stafford loans for which the first disbursement is made on/after 7/1/95 and before 7/1/98, except during the in-school, grace and deferment periods, and (c) consolidation loans for which the loan application was received on/after 11/13/97 and prior to 10/1/98.

Applicable Annual Interest Rate
Special Allowance at Annual Rate
Special Allowance For 3-Month Period
4.86 % 8
.0000
.000000
5.23 % 9
.0000
.000000
6.00% 10
.0000
.000000
7-14%
.0000
.000000

Stafford loans from 7/1/95 to 7/1/98 only during in-school, grace and deferment

4.26%
.0000
.000000

Stafford loans from 7/1/98 to 1/1/2000 only during in-school, grace and deferment

3.46%
.0000
.000000

Stafford loans from 7/1/98 to 1/1/2000, except during in-school, grace and deferment

4.06%
.0000
.000000

 

Consolidation loans made on/after 10/1/98 to 1/1/00. Formula: (1.17%) plus (3.1%) less (applicable interest rate) = special allowance rate.

The interest rate for these consolidation loans is determined by taking the weighted average of the interest rates on the loans being consolidated, rounded to the nearest higher 1/8th of one percent. Therefore, due to the wide range of possible applicable interest rates, no further calculations are shown here.

Tax-exempt Loans

Tax-exempt loans prior to 10/1/81

7%

.0250
.006250
9%
.0050
.001250

 

 

Tax-exempt loans from 10/1/81

3.46% 11
.0604
.015100

 

8 (a) Stafford loans, made to new borrowers, for which the first disbursement is made on/after 10/1/92 but prior to 7/1/94, (b) fixed-rate 9% Stafford loans that were subject to the "windfall profits" provisions of 427A(i)(3) of the Act and that have been converted to a variable rate; see 427A(i)(7)(D) of the Act and (c) 8/10% Stafford loans (on/after the 49th month of repayment) that were subject to the "windfall profits" provisions of 427A(i)(3) of the Act and that have been converted to a variable rate (1992 amendments).

9 PLUS loans made on/after 7/1/94 but prior to 7/1/98.

10 The 6% interest and special allowance rates only apply to Consolidation loans made on/after 7/1/94 with tax-exempt funds; the 10%, 11%, 13%, and 14% interest and special allowance rates only apply to consolidation loans made with tax-exempt funds.

11 Stafford loans made on/after 7/1/98 and prior to 7/1/06, only during the in-school, grace and deferment periods.

Applicable Annual Interest Rate
Special Allowance at Annual Rate
Special Allowance For 3-Month Period
4.06% 12
.0544
.013600
4.26 % 13
.0524
.013100
4.86% 14
.0464
.011600
4.86% 15, 16
.0464
.011600
5.01% 17
.0449
.011225
5.23% 18
.0427
.010675
6% 19
.0350
.008750
7%
.0250
.006250
8%
.0150
.003750
9%
.0050
.001250
10-14%
.0000
.000000

 

 

 

 

 

 

 

Stafford loans from 1/1/2000 to 7/1/2006 only during in-school, grace and deferment

3.46%
.0000
.000000

 

Stafford loans from 1/1/2000 to 7/1/2006, except during in-school, grace and deferment

4.06%
.0000
.000000

 

*****

Special allowance rate for PLUS loans - Formula: (1.27%) plus (2.64%) less (applicable interest rate) = annual special allowance rate. Since this rate does not exceed the 9% cap, no special allowance will be paid during the four quarters ending 9/30/02, 12/31/02, 3/31/03, and 6/30/03.

The interest rate for Consolidation loans for applications received on/after 01/01/2000 but prior to 7/1/2006 is determined by taking the weighted average of the interest rates on the loans being consolidated, rounded to the nearest higher 1/8th of one percent. Therefore, due to the wide range of possible applicable interest rates, no further special allowance rate calculations are shown here.

12 Stafford loans made on/after 7/1/98 and prior to 7/1/06, except during the in-school, grace and deferment periods.

13 Stafford loans for which the first disbursement is made on/after 7/1/95 and before 7/1/98, only during the in-school, grace, and deferment periods.

14 (a)Fixed-rate 7% Stafford loans that were subject to the "windfall profits" provisions of 427A(i)(3) of the Act and that have been converted to a variable rate, and (b)Fixed-rate 8% Stafford loans, and 8/10% Stafford loans (prior to the 49th month of repayment) that were subject to the "windfall profits" provisions of 427A(i)(3) of the Act and that have been converted to a variable rate. Also see 427A(i)(7)(D) of the Act. (1992 Amendments)

15 (a) Stafford loans, made to new borrowers, for which the first disbursement is made on/after 10/1/92 but prior to 7/1/94 (b) fixed-rate 9% Stafford loans and that were subject to the "windfall profits" provisions of 427A(i)(3) of the Act and that have been converted to a variable rate; See 427A(i)(7)(D) of the Act and (c) 8/10% Stafford loans (on/after the 49th month of repayment) that were subject to the "windfall profits" provisions of 427A(i)(3) of the Act and that have been converted to a variable rate (1992 Amendments).

16 (a) All Stafford loans made for periods of enrollment that either begin on/after 7/1/94 or include that date for which the first disbursement is made on/after 7/1/94 but prior to 7/1/95, and (b) all Stafford loans for which the first disbursement is made on/after 7/1/95 and before 7/1/98, except during the in-school, grace and deferment periods.

17 Fixed-rate 8/10% Stafford loans that were subject to the "windfall profits" provisions of 427A(i)(1) of the Act and that have been converted to a variable rate; see 427A(i)(7)(D) of the Act (1986 Amendments).

18 PLUS loans made on/after 7/1/94 but prior to 7/1/98.

19 The 6% interest and special allowance rates only apply to Consolidation loans made on/after 7/1/94 with tax-exempt funds; the 10%, 11%, 13%, and 14% interest and special allowance rates only apply to Consolidation loans made with tax-exempt funds.

*****

The average of the bond equivalent rate of the ninety-one day Treasury bills auctioned during the quarter ending March 31, 2003 is 1.17%. The average of the bond equivalent rates of the quotes of the 3-month commercial paper (financial) rates in effect for each of the days in the quarter ending March 31, 2003 is 1.27%.

*****

This information may be accessed directly from the U.S. Department of Education's website,at:

http://www.ifap.ed.gov/ffelspecrates/SA03312003.html