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Special Allowance Rates

Special Allowance Rates for Stafford and PLUS Loans for the Quarter Ending December 31, 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 December 31, 2006 averaged 5.03%. 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%	153% .53%	.3825% .1325%	SB
7.00% 7.94% 8.00% 8.09%	1.28% .34% .28% .19%	.3200% .0850% .0700% .0475%	SD
7.00% 7.94% 8.00%	1.13% .19% .13%	.2825% .0475% .0325%	SE
7.94%	.19%	.0475%	SG
7.34%	.19%	.0475%	SH
6.54%	.69%	.1725%	SJ
7.14%	.69%	.1725%	SK

The Commercial Paper (CP) Rate for the same quarter averaged 5.38%.

Loan Interest Rate	Special Allowance Annual Rate	Special Allowance Quarterly Rate	LaRS (Lender Reporting System) Part III: Special Allowance Category Column E*
6.54%	.58%	.1450%	CA
7.14%	.58%	.1450%	CB
7.94% (PLUS)	.08%	.0200%	CD
6.54% 6.80%	.58% .32%	.1450% .0800%	CE
6.80% 7.14%	.92% .58%	.2300% .1450%	CF
7.94% (PLUS) 8.50% (PLUS)	.08% (.48%)**	.0200% (.1200%)**	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.