Promissory Note Information 
Master Promissory Note Required Beginning July 1, 2000

LOUISIANA STUDENT FINANCIAL ASSISTANCE COMMISSION
OFFICE OF STUDENT FINANCIAL ASSISTANCE

LOAN PROGRAM BULLETIN
TO:
 Lenders and Schools
DATE:
 April 20, 2000
TOPIC:
 Special Allowance Rates Calculated from Quarter Ending March 31, 2000

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.

Annual Rate  Allowance at Annual Rate Quarterly Rate
Loans prior to 10/1/81
7%

.0225 

.005625
9%

.0025

.000625
Loans from 10/1/81 to 11/16/86
7%   .0222 .005550
8%   .0122 .003050
9%  .0022 .000550
12-14%   .0000 .000000
Loans from 11/16/86 to 10/1/92
7%   .0197 .004925
7.72%   .0125 .003125
7.87%   .0110 .002750
8%   .0097 .002425
9-14%   .0000 .000000
Loans from 10/1/92 to 7/1/98
6%   .0282 .007050
7%   .0182 .004550
7.72%   .0110 .002750
7.98%   .0084 .002100
8%   .0082 .002050
9-14%   .0000 .000000
Loans from 7/1/95 to 7/1/98 only during in-school, grace and deferment
7.12%  .0110  .002750
Loans from 7/1/98 to 1/1/00 only during in-school, grace and deferment
6.32%   .0160 .00400
Loans from 7/1/98 to 1/1/00 except during in-school, grace and deferment
6.92%   .0160 .00400

 

Annual Rate Allowance at Annual Rate Quarterly Factor

Tax-exempt Loans 
Tax-exempt loans prior to 10/1/81
7%   .025 .00625
9%  .005 .00125
Tax-exempt loans from 10/1/81
6%   .0350 .008750
6.32%   .0318 .007950
6.92%   .0258 .006450
7%   .0250 .006250
7.12%   .0238 .005950
7.72%   .0178 .004450
7.87%   .0163 .004075
7.98%  .0152 .003800
8%   .0150 .003750
9%   .0050 .001250
10%-14%   .0000 .000000
Loans from 1/1/2000 to 7/1/2003 only during in-school, grace and deferment
6.32%   .0152 .003800
Loans from 1/1/00 to 7/1/03, except during in-school, grace and deferment
6.92%   .0152 .003800

 

NOTE: The current interest rate for PLUS loans is 7.72%. Since this rate does not exceed the 9% cap, no special allowance will be paid during the period 7/1/99 through 6/30/2000.

The average bond equivalent rate of the ninety-one day Treasury bills auctioned during the quarter ending March 31, 2000 is 4.60%. 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, 2000 is 6.10%.

This information may be accessed directly from the U.S. Department of Education’s website, at  http://www.ifap.ed.gov/csb_html/ffelrate.htm 

 

 

 

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