New Variable Interest Rates - July 1, 1999 - June 30, 2000

Federal Stafford Variable Interest Rates

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.