LOUISIANA STUDENT
FINANCIAL ASSISTANCE COMMISSION
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TO: |
Lenders, Guarantors and Schools |
DATE: |
May 15, 2006 |
TOPIC: |
Special Allowance Rates calculated from quarter ending March 31, 2006 |
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 Treasury Department has published the average of the bond equivalent rates of the ninety-one day Treasury bills auctioned during the quarter ending March 31, 2006, as 4.49 percent. Further, 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, 2006, is 4.75 percent.
SPECIAL ALLOWANCE RATES FOR THE QUARTER ENDING March 31, 2006 | ||
Applicable
Annual |
Special
Allowance at Annual Rate |
Special
Allowance For 3-Month Period |
Loans prior to 10/1/81 | ||
7% | .0100 | .002500 |
9% | .0000 | .000000 |
Loans prior to 10/1/81 to 11/16/86 | ||
7% | .0099 | .002475 |
8%, 9%, 12% and 14% | .0000 | .000000 |
Loans from 11/16/86 to 10/1/92 | ||
6.10%,1,2,3 | .0164 | .004100 |
6.25% 4 | .0149 |
.003725 |
7% | .0074 |
.001850 |
8% - 14% | .0000 |
.000000 |
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Applicable
Annual |
Special
Allowance at Annual Rate |
Special
Allowance For 3-Month Period |
Loans from 10/1/92 to 10/1/98 | ||
6% 5 | .0159 | .003975 |
6.10%
6,7,8,9 |
.0149 |
.003725 |
6.50%
10 |
.0109 |
.002775 |
7% | .0059 | .001475 |
8% - 14% | .0000 | .000000 |
Stafford loans from 7/1/95 to 7/1/98, only during in-school, grace and deferment. | ||
5.50% | .0149 | .003725 |
Stafford loans from 7/1/98 to 1/1/00, only during in-school, grace and deferment. | ||
4.70% | .0199 | .004975 |
Stafford loans from 7/1/98 to 1/1/00, except during in-school, grace and deferment. | ||
5.30% | .0199 | .004975 |
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Consolidation
loans made on/after 10/1/98 but prior to 1/1/00. Formula: (4.49%)
plus (3.1%) less (applicable interest rate) = special allowance rate.
Note: 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 |
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Tax-exempt
loans made on/after 10/1/80, but prior to 10/1/81
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7% |
.0250 |
.006250 |
9% |
.0050 |
.001250 |
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Tax-exempt
loans made on/after 10/1/81
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4.70%
11 |
.0480 |
.012000 |
5.30% 12 | .0420 | .010500 |
5.50% 13 | .0400 | .010000 |
6.00% 14 | .0350 | .008750 |
6.10% 15,16,17 | .0340 | .008500 |
6.25% 18 | .0325 | .008125 |
6.50% 19 | .0300 | .007500 |
7% | .0250 | .006250 |
8% | .0150 | .003750 |
9% | .0050 | .001250 |
10 - 14% | .0000 | .000000 |
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Applicable
Annual |
Special
Allowance at Annual Rate |
Special
Allowance For 3-Month Period |
Stafford loans from1/1/00 but prior to 7/1/06, only during in-school, grace and deferment. | ||
4.70% | .0179 | .004475 |
Stafford loans from 1/1/00 but prior to 7/1/06, except during in-school, grace and deferment. | ||
5.30% | .0179 | .004475 |
Special allowance rate for PLUS loans - Formula: (4.75%) plus (2.64%) less (applicable interest rate) = annual special allowance rate. Since the current interest rate for PLUS loans is 6.10%, and does not exceed the 9% cap, no special allowance will be paid during the period 7/1/05 through 6/30/06. Consolidation Loans - for applications received on/after 1/1/00 but prior to 7/1/06 Formula: (4.75%) plus (2.64%) less (applicable interest rate) = annual special allowance rate. Note: The interest rate for consolidation loans for applications received on/after 1/1/00 but prior to 7/1/06 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. |