[Federal Register: July 8, 1996 (Volume 61, Number 131)] [Notices] [Page 35728-35729] From the Federal Register Online via GPO Access [wais.access.gpo.gov] ======================================================================= ----------------------------------------------------------------------- DEPARTMENT OF EDUCATION Office of Postsecondary Education; William D. Ford Federal Direct Loan Program AGENCY: Department of Education. ACTION: Notice of interest rates for the William D. Ford Federal Direct Loan Program for the period July 1, 1996, through June 30, 1997. ----------------------------------------------------------------------- SUMMARY: The Assistant Secretary for Postsecondary Education announces the interest rates for variable rate loans made under the William D. Ford Federal Direct Loan (Direct Loan) Program for the period July 1, 1996, through June 30, 1997. FOR FURTHER INFORMATION CONTACT: Barbara F. Grayson, Program Specialist, William D. Ford Federal Direct Loan Program, Policy Development Division, Office of Postsecondary Education, U.S. Department of Education, Room 3045, ROB-3, 600 Independence Avenue, SW, Washington, DC 20202-5400. Telephone: (202)708-9406. Individuals who use a telecommunications device for the deaf (TDD) may call the Federal Information Relay Service (FIRS) at 1-800-877-8339 between 8 a.m. and 8 p.m., Eastern time, Monday through Friday. SUPPLEMENTARY INFORMATION: The formulas for determining the interest rates for Direct Loan Program loans are provided under section 455 of the Higher Education Act of 1965, as amended (the Act) (20 U.S.C. 1087e), and as codified in 34 CFR 685.202(a) and 685.215(g). Section 455(b) of the Act provides that a variable interest rate applies to loans made under the Direct Loan Program and disbursed on or after July 1, 1994. The variable rate is determined annually and applies for each 12-month period beginning July 1 and ending June 30. For Federal Direct Stafford/Ford (Direct Subsidized) and Federal Direct Unsubsidized Stafford/Ford (Direct Unsubsidized) Loans, and Federal Direct Subsidized and Federal Direct Unsubsidized Consolidation Loans, the interest rate may not exceed 8.25 percent. For Federal Direct PLUS and Federal Direct PLUS Consolidation Loans, the interest rate may not exceed 9 percent. [[Page 35729]] Interest Rates for Direct Subsidized, Direct Unsubsidized, Direct Subsidized Consolidation, and Direct Unsubsidized Consolidation Loans Loans first disbursed prior to July 1, 1995. Pursuant to section 455(b)(1) of the Act, the Assistant Secretary has determined the interest rate for the period July 1, 1996, through June 30, 1997, to be 8.25 percent. Loans first disbursed on or after July 1, 1995. (a) During the in- school, grace, and deferment periods. Pursuant to section 455(b)(2) of the Act, the Assistant Secretary has determined the interest rate for the period July 1, 1996, through June 30, 1997, to be 7.66 percent. (b) During all other periods. Pursuant to section 455(b)(1) of the Act, the Assistant Secretary has determined the interest rate for the period July 1, 1996, through June 30, 1997, to be 8.25 percent. Interest Rates for Direct PLUS and Direct PLUS Consolidation Loans Pursuant to section 455(b)(4) of the Act, the Assistant Secretary has determined the interest rate for the period July 1, 1996, through June 30, 1997, to be 8.72 percent. (20 U.S.C. 1087e). Dated: July 1, 1996. David A. Longanecker, Assistant Secretary for Postsecondary Education. [FR Doc. 96-17243 Filed 7-5-96; 8:45 am] BILLING CODE 4000-01-P