Special Allowance Rate

The U.S. Department of Education (ED) releases special allowance rates on a quarterly basis. These rates are computed pursuant to section 438 of the Higher Education Act of 1965, as amended. The average bond equivalent rate of the ninety-one day Treasury Bills auctioned during the quarter ending March 31, 2005 is 2.60 percent. In addition, the average bond equivalent rate of the quotes of the 3-month commercial paper (financial) rates in effect for each day in the quarter ending March 31, 2005 is 2.78 percent.

A copy of the special allowance rates can be found on ED’s Web site at http://ifap.ed.gov/ffelspecrates/SAPmemo032005.html. If you would like a hard copy, please contact Becky Hudson at 801.321.7211. If you have any further questions or need additional information on special allowance rates, please contact Michelle Riddle at 801.321.7145 or by e-mail at mriddle@utahsbr.edu.