You are using an outdated and unsupported browser. Please upgrade your browser to improve your experience.
Skip to Header Navigation Skip to Main Navigation Skip to Main Content Skip to Footer

Special Allowance Rates

Special Allowance Rates for Stafford and PLUS loans for the quarter ending June 30, 2012

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

The Treasury Bill (T-bill) rate for the quarter ending June 30, 2012 averaged 0.09%. 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
3.16%
3.31%
7.00%
8.00%
0.18%
0.03%
0.00%
0.00%
0.0450%
0.0075%
0.00%
0.00%
SD
3.16% 0.03% 0.0075% SE
3.16%
3.27%
0.03%
0.00%
0.0075%
0.00%
SG
2.56% 0.03% 0.0075% SH
1.76% 0.53% 0.1325% SJ
2.36% 0.53% 0.1325% SK

For the quarter ending June 30, 2012, the average commercial paper rate—as calculated by the U.S. Department of Education (ED)—was 0.20%. 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*
1.76% 0.18% 0.0450% CA
2.36% 0.18% 0.0450% CB
3.16% (PLUS) 0.00% 0.00% CD
1.76%
6.80%
0.18%
(4.86%)
0.0450%
(1.2150%)
CE
2.36%
6.80%
0.18%
(4.26%)
0.0450%
(1.0650%)
CF
3.16% (PLUS)
8.50% (PLUS)
(0.32%)
(5.66%)
(0.0800%)
(1.4150%)
CH
5.60%
6.00%
6.80%
(4.21%)
(4.61%)
(5.41%)
(1.0525%)
(1.1525%)
(1.3525%)
CI
5.60%
6.00%
6.80%
(3.61%)
(4.01%)
(4.81%)
(0.9025%)
(1.0025%)
(1.2025%)
CJ
8.50% (PLUS) (6.51%) (1.6275%) CM

Beginning with the quarter ending June 30, 2012, lenders were given the option to use "the average of the bond equivalent rates of the quotes of the 1-month London InterBank Offered Rate (LIBOR) in effect for each of the days in such quarter as compiled and released by the British Bankers Association" in place of the Commercial Paper Rate.

For the quarter ending June 30, 2012, the average London InterBank Offered Rate (LIBOR) rate — as calculated by the U.S. Department of Education — was .25%. 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*
1.76% 0.23% 0.0575% LA
2.36% 0.23% 0.0575% LB
3.16% (PLUS) 0.00% 0.00% LD
1.76%
6.80%
0.23%
(4.81%)
0.0575%
(1.2025%)
LE
2.36%
6.80%
0.23%
(4.21%)
0.0575%
(1.0525%)
LF
3.16% (PLUS)
8.50% (PLUS)
(0.27%)
(5.61%)
(0.0800%)
(1.4025%)
LH
5.60%
6.00%
6.80%
(4.16%)
(4.56%)
(5.36%)
(1.0400%)
(1.1400%)
(1.3400%)
LI
5.60%
6.00%
6.80%
(3.56%)
(3.69%)
(4.76%)
(0.8900%)
(0.9900%)
(1.1900%)
LJ
8.50% (PLUS) (6.46%) (1.6150%) LM

* For a detailed explanation of the Special Allowance codes, please visit the Common Manual at www.aesSuccess.org. To access the Manual, click on 'Solutions for Lenders' on the left-hand side of the screen. Then click on 'Access financial aid publications' under the heading 'More Lender Solutions,' which is located in the middle column on the screen. Then select 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.