Consolidation Loan Interest Rates - July 1, 1999 - June 30, 2000

Federal Consolidation Variable and Fixed 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 Consolidation loans made before July 1, 1994, the interest rate is the weighted average of the interest rates on the loans consolidated, rounded to the nearest whole percent, or 9%, whichever is greater.

For Consolidation loans made on or after July 1, 1994 and for which the loan application was received by an eligible lender before November 13, 1997, the interest rate is the weighted average of the interest rates on the loans Consolidated, rounded upward to the nearest whole percent.

For Consolidation loans for which the loan application was received by an eligible lender on or after November 13, 1997, but before October 1, 1998, the interest rate is determined annually, and equals the bond equivalent rate of 91-day Treasury bills auctioned on the final auction held before June 1 of each year, plus 3.10 percent, capped at 8.25%:
                                                           
                                                                4.62% + 3.10% = 7.72%

For Consolidation loans for which the loan application was received by an eligible lender on or after October 1, 1998, but before July 1, 2003, the interest rate is the weighted average of the interest rates on the loans being consolidated, rounded to the nearest higher 1/8 of one percent, capped at 8.25.