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Special Allowance Rates

Special Allowance Rates for Stafford and PLUS Loans for the Quarter Ending September 30, 2006

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 September 30, 2006 averaged 5.05%. 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%	1.55% .55%	.3875% .1375%	SB
7.00% 7.94% 8.00% 8.09%	1.30% .36% .30% .21%	.3250% .0900% .0750% .0525%	SD
7.00% 7.94%	1.15% .21%	.2875% .0525%	SE
7.94% (Stafford) 8.00% (Stafford)	.21% .15%	.0525% .0375%	SG
7.34%	.21%	.0525%	SH
6.54%	.71%	.1775%	SJ
7.14%	.71%	.1775%	SK

The Commercial Paper (CP) Rate for the same quarter averaged 5.45%

Loan Interest Rate	Special Allowance Annual Rate	Special Allowance Quarterly Rate	LaRS (Lender Reporting System) Special Allowance Category*
6.54%	.65%	.1625%	CA
7.14%	.65%	.1625%	CB
7.94% (PLUS)	.15%	.0375%	CD
6.54% 6.80%	.65% .39%	.1625% .0975%	CE
6.80% 7.14%	.99% .65%	.2475% .1625%	CF
7.94% (PLUS) 8.50% (PLUS)	.15% (.41%)**	.0375% (.1025%)**	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 the word ‘Lenders’ under PARTNERS on the right-hand side of the screen.  Then select ‘Integrated Common Manual & Addenda’ from the list that appears on the left-hand side of the screen.  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.