The U.S. Department of Education (ED) has recently published the new interest rates for Fiscal Year 1998-99 (FY 98-99). As you may know, interest rates for new loans made during the three month period of July 1, 1998 through September 30, 1998 have been established with the signing of the Transportation Equity Act for the 21st Century. The following is a quick list of the interest rates for new Stafford and PLUS loans:
STAFFORD LOANS -- IN-SCHOOL, GRACE AND DEFERMENT PERIODS
For Stafford loans disbursed on or after July 1, 1998 and before October 1, 1998, during the in-school, grace, and deferment periods, the FY 98-99 interest rate is 6.86%.
STAFFORD LOANS -- REPAYMENT AND FORBEARANCE PERIODS
For Stafford loans disbursed on or after July 1, 1998 and before October 1, 1998, during the repayment and forbearance periods, the FY 98-99 interest rate is 7.46%.
PLUS LOANS
For Federal PLUS loans disbursed on or after July 1, 1998 but prior to October 1, 1998, the FY 98-99 interest rate is 8.26%.
CONSOLIDATION LOANS
For Federal Consolidation loans made on or afer November 13, 1997 but prior to
October 1, 1998, the FY 98-99 interest rate is 8.25%.
Attached is a comprehensive chart of the FY 98-99 interest rates applicable to all categories of Federal Family Education Program (FFELP) loans. A copy of ED's official memorandum detailing the FY 98-99 interest rates can be found on ED's web-site at http://ifap.ed.gov. If you are unable to access this web-site and would like a copy of the interest rates, please contact Lynda Reid at (801) 321-7211. Any questions related to FFELP interest rates should be directed to the Policy and Training Department at (801) 321-7166.
Attachment (See below.)
| Loan Type | Effective
Date |
Qualifying Criteria | 1998 T-Bill
Rate |
Factor | Rate +
Factor = |
Interest
Rate Cap |
98-99
Rate |
| CONSOL | 11/13/97 | Loans made on or after 11/13/97, but prior to 10/1/98 | 5.16% | 3.10% | 8.26% | 8.25% | 8.25% |
| PLUS | 7/1/98 | Loans disbursed on or after 7/1/98, but prior to 10/1/98 | 5.16% | 3.10% | 8.26% | 9% | 8.26% |
| STAFFORD | 7/1/98 | Loans disbursed on or after 7/1/98, but prior to 10/1/98 during in-school, grace, and deferment periods | 5.16% | 1.70% | 6.86% | 8.25% | 6.86% |
| STAFFORD | 7/1/98 | Loans disbursed on or after 7/1/98, but prior to 10/1/98 during repayment and forbearance periods | 5.16% | 2.30% | 7.46% | 8.25% | 7.46% |
| SLS/PLUS | 7/1/87 | Loans disbursed on or after 7/1/87, but prior to 10/1/92 | 5.43% | 3.25% | 8.68% | 12% | 8.68% |
| SLS | 10/1/92 | Loans disbursed on or after 10/1/92 for a period of enrollment beginning prior to 7/1/94 | 5.43% | 3.10% | 8.53% | 11% | 8.53% |
| PLUS | 10/1/92 | Loans disbursed on or after 10/1/92, but prior to 7/1/94 | 5.43% | 3.10% | 8.53% | 10% | 8.53% |
| PLUS | 7/1/94 | Loans disbursed on or after 7/1/94, but prior to 7/1/98 | 5.43% | 3.10% | 8.53% | 9% | 8.53% |
| STAFFORD | 10/1/92 | Loans to "New Borrowers" with the first disbursement made: (a) on or after 10/1/92, but prior to 7/1/94; or (b) on or after 7/1/94 for a period of enrollment ending prior to 7/1/94 | 5.16% | 3.10% | 8.26% | 9% | 8.26% |
| STAFFORD | 7/1/94 | Loans with the first disbursement made on or after 7/1/94, but prior to 7/1/95, for periods of enrollment that include or begin on or after 7/1/94 | 5.16% | 3.10% | 8.26% | 8.25% | 8.25% |
| STAFFORD | 7/1/95 | Loans disbursed on or after 7/1/95, but prior to 7/1/98 during in-school, grace and deferment periods | 5.16% | 2.50% | 7.66% | 8.25% | 7.66% |
| STAFFORD | 7/1/95 | Loans disbursed on or after 7/1/95, but prior to 7/1/98 during repayment and forbearance periods | 5.16% | 3.10% | 8.26% | 8.25% | 8.25% |
| STAFFORD | 7/23/92 | 8/10% loans subject to windfall profits, converted to variable rate | 5.16% | 3.25% | 8.41% | 10% | 8.41% |
| STAFFORD | 7/23/92 | Fixed rate 7%, 8%, 9%, and 8/10% subject to windfall profits, loans converted to variable rate | 5.16% | 3.10% | 8.26% | 7% - 7%
8% - 8% 9% - 9% 8/10% - 10% |
7% - 7%
8% - 8% 9% - 8.26% 10% - 8.26% |