Special Allowance Rate

The U.S. Department of Education (ED) releases special allowance rates on a quarterly basis. These rates are computed pursuant to section 438 of the Higher Education Act of 1965, as amended. The average bond equivalent rate of the ninety-one day Treasury Bills auctioned during the quarter ending December 31, 2005 is 3.93 percent. In addition, the average of the bond equivalent rates of the quotes of the 3-month commercial paper (financial) rates in effect for each day in the quarter ending December 31, 2005 is 4.32 percent.

A copy of the special allowance rates can be found on ED’s Web site at http://www.ifap.ed.gov/ffelspecrates/SAPMemo123105.html. If you would like a hard copy, please contact Jan Tyler-Bayly at 801.321.7211. If you have any further questions or need additional information on special allowance rates, please contact Michelle Riddle at 801.321.7145 or by e-mail at mriddle@utahsbr.edu