Period Begin: July 1, 2008

Period End: June 30, 2009

Posted on 07-01-2008

The attached charts show the variable interest rates applicable to the Federal Stafford, Federal SLS, Federal PLUS, and Federal Consolidation loan programs for the period July 1, 2008 - June 30, 2009. Interest rates for variable-rate loans under these programs are determined annually, and are based on the following:

• Stafford Loans - based on the bond equivalent rate of 91-day Treasury Bills auctioned at the final auction held before June 1st of each year. The bond equivalent rate for 91-day Treasury Bills auctioned on May 27, 2008 is 1.905 percent, which rounds to 1.91 percent.
  
  
• PLUS/SLS Loans - based on either the bond equivalent rate of 91-day Treasury Bills auctioned at the final auction held before June 1st of each year, or the weekly average of the one-year constant maturity Treasury yield as published for the last calendar week ending on or before June 26th of each year. The bond equivalent rate for 91-day Treasury Bills auctioned on May 27, 2008, is 1.905 percent, which rounds to 1.91 percent. The weekly average of the one-year constant maturity Treasury yield for the last calendar week ending on or before June 26th is 2.57 percent.
  
  
• Consolidation Loans - for which the loan application was received by an eligible lender on or after 11/13/97 but prior to 10/1/98 are based on the bond equivalent rate of 91-day Treasury Bills auctioned at the final auction held before June 1st of each year, or 1.91 percent. For the HEAL portion of consolidation loans for which the loan application was received by an eligible lender on or after 11/13/97, the rate is based on the average of the bond equivalent rates of the 91-day Treasury Bills auctioned for the quarter ending June 30th of each year, or 1.712 percent which rounds to 1.71 percent.

These rates do not affect new Federal Stafford or Federal PLUS loans made on or after July 1, 2006 that are subject to fixed-rates.

Accounting Division
Office of the Chief Financial Officer

Attachments/Enclosures:

FFEL "Converted" Variable-rate Stafford Loan Interest Rates for the Period July 1, 2008 through June 30, 2009 in PDF Format, 74KB, 8 pages

FFEL "Converted" Variable-rate Stafford Loan Interest Rates for the Period July 1, 2008 through June 30, 2009 in Microsoft Word Format, 74KB, 8 pages