Posted Date: December 17, 2008
Subject: PLUS/SLS Variable Interest Rate for 2009 – “91-day Treasury Bill” Method
Due to the wording of the promissory notes, some loans are subject to a calendar-year adjustment of the variable interest rate, based on the “91-day Treasury Bill” method that existed in statute [section 427A(c)(4)] prior to enactment of the Higher Education Technical Amendments Act of 1987 (Pub. L. 100-50). The rate is equal to the “average of the 91-day Treasury Bills auctioned during the 12-month period ending November 30” plus 3.75 percent, not to exceed 12 percent.
Accordingly, we have determined that the variable interest rate for calendar year 2009 is 5.50 percent [1.75% (the 91-day T-bill average) + 3.75%].
Please note that this rate applies only to PLUS/SLS promissory notes that provide for a calendar year adjustment based on the “91-day Treasury Bill” method.
Due to no reported activity for these loan types during the past two years, this will be the last publication of this memo.
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