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PLUS/SLS Variable Interest Rate - "91-day Treasury Bill" Method |
LOUISIANA STUDENT FINANCIAL ASSISTANCE COMMISSION
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TO: |
Lenders and Schools |
DATE: |
December 10, 1999 |
TOPIC: |
PLUS/SLS Variable Interest Rate - "91-day Treasury Bill" Method |
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 the 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 2000 is 8.48% [4.73% (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.