Special Allowance Rates
Special Allowance Rates for Stafford and PLUS loans for the Quarter ending June 30, 2010
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 June 30, 2010 averaged .15%. 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% | 0.00% | 0.00% | SA |
| 7.00% 8.00% |
0.00% 0.00% |
0.00% 0.00% |
SB |
| 3.28% 3.43% 7.00% 8.00% |
0.12% 0.00% 0.00% 0.00% |
0.0300% 0.00% 0.00% 0.00% |
SD |
| 3.28% | 0.00% | 0.00% | SE |
| 3.28% 3.58% |
0.00% 0.00% |
0.00% 0.00% |
SG |
| 2.68% | 0.00% | 0.00% | SH |
| 1.88% | 0.47% | 0.1175% | SJ |
| 2.48% | 0.47% | 0.1175% | SK |
For the quarter ending June 30, 2010, the average Commercial Paper (CP) rate—as calculated by the U.S. Department of Education—was .41%. When the special allowance formula results in a negative rate on a loan first disbursed on or after April 1, 2006, the lender must remit the excess interest to ED.
| Loan Interest Rate | Special Allowance Annual Rate+ | Special Allowance Quarterly Rate+ | LaRS (Lender Reporting System) Part III: Special Allowance Category Column E* |
|---|---|---|---|
| 1.88% | 0.27% | 0.0675% | CA |
| 2.48% | 0.27% | 0.0675% | CB |
| 3.28% (PLUS) | 0.00% | 0.00% | CD |
| 1.88% 6.80% |
0.27% (4.65%) |
0.0675% (1.1625%) |
CE |
| 2.48% 6.80% |
0.27% (4.05%) |
0.0675% (1.0125%) |
CF |
| 3.28% (PLUS) 8.50% (PLUS) |
(0.23%) (5.45%) |
(0.0575%) (1.3625%) |
CH |
| 5.60% 6.00% 6.80% |
(4.00%) (4.40%) (5.20%) |
(1.0000%) (1.1000%) (1.3000%) |
CI |
| 5.60% 6.00% 6.80% |
(3.40%) (3.80%) (4.60%) |
(0.8500%) (0.9500%) (1.1500%) |
CJ |
| 8.50% (PLUS) | (6.30%) | (1.5750%) | CM |
* For a detailed explanation of the Special Allowance codes, please view the Common Manual. The Special Allowance codes are located in Appendix A, figure A-5.
+ For entities approved as not-for-profit holders, Special Allowance payments will be based on another code that ED sets in the respective demographic profiles. Please see the March/April 2008 issue of Loan Notes (PDF) for more information.