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 U.S. Department of Education has advised that due to wording of the promissory notes, some loans are subject to a calendar year adjustment of the variable interest rate, based on the "91-day Treasury Bill" method that existed in statute [section 427A(c)(4)] prior to enactment of the Higher Education Technical Amendments of 1987 (Pub. L. 100-50). The rate is equal to the "average of the 91-day Treasury Bills auctioned during the 12-month period ending November 30" plus 3.75%, not to exceed 12%.

Accordingly, the Department has determined that the variable interest rate for calendar year 1999 is
8.74% [4.99% (the 91-day T-bill average) + 3.75%].

Please note that this rate applies only to PLUS/SLS promissory notes that provide for a calendar year adjustment based on the "91-day Treasury Bill" method.