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Special Allowance Rates

Special Allowance Rates for Stafford and PLUS Loans for the Quarter Ending March 31, 2007

Please note: The applicable Special Allowance Rates for Consolidation loans and for loans made or purchased with tax-exempt funds are available at www.ifap.ed.gov.

The Treasury Bill (T-bill) rate for the quarter ending March 31, 2007 averaged 5.12%. The categories for which Special Allowance was paid on loans made or purchased with taxable funds are:

Loan Interest Rate	Special Allowance Annual Rate	Special Allowance Quarterly Rate	LaRS (Lender Reporting System) Part III: Special Allowance Category Column E*
7.00%	1.625%	4063%	SA
7.00% 8.00%	1.62% .62%	.4050% .1550%	SB
7.00% 7.94% 8.00% 8.09%	1.37% .43% .37% .28%	.3425% .1075% .0925% .0700%	SD
7.00% 7.94% 8.00%	1.22% .28% .22%	.3050% .0700% .0550%	SE
7.94%	.28%	.0700%	SG
7.34%	.28%	.0700%	SH
6.54%	.78%	.1950%	SJ
7.14%	.78%	.1950%	SK

The Commercial Paper (CP) Rate for the same quarter averaged 5.37%.

Loan Interest Rate	Special Allowance Annual Rate	Special Allowance Quarterly Rate	LaRS (Lender Reporting System) Part III: Special Allowance Category Column E*
6.54%	.57%	.1425%	CA
7.14%	.57%	.1425%	CB
7.94% (PLUS)	.07%	.0175%	CD
6.54% 6.80%	.57% .31%	.1425% .0775%	CE
6.80% 7.14%	.91% .57%	.2275% .1425%	CF
7.94% (PLUS) 8.50% (PLUS)	.07% (.49%)**	.0175% (.1225%)**	CH

* For a detailed explanation of the Special Allowance codes, please visit the Integrated Common Manual (ICM) at www.aessuccess.org. To access the ICM, click on ‘Solutions for Lenders’ on the left-hand side of the screen. Then select ‘Integrated Common Manual & Addenda’ from the list that appears below the text. Click on ‘Integrated Common Manual’ to access the ICM. The Special Allowance codes are located in Appendix A, figure A-3.

** Because this formula resulted in an amount less than zero, these loans will not receive special allowance. The rate shown is for the recapture of excess interest.