Interest Rates For Fiscal Year 2005-2006

The U.S. Department of the Treasury held an auction of the 91-day U.S. Treasury bills on Tuesday, May 31, 2005. The bond equivalent rate of these notes determines Federal Family Education Loan Program (FFELP) rates for the coming fiscal year.  The new variable Stafford and PLUS loan interest rates for the period July 1, 2005 through June 30, 2006 (FY 05-06) for loans first disbursed on or after July 1, 1998 will be as follows:

Stafford, In-school, grace and deferment periods: 4.7%

Stafford, Repayment and forbearance periods: 5.3%

PLUS: 6.1%

These rates will also affect the weighted average interest rate for such loans that may be consolidated during the next fiscal year.

In the next several days, the Utah Higher Education Assistance Authority (UHEAA) will distribute a chart showing those loans affected by the 91-day U.S. Treasury bill. A comprehensive chart of the FY 05-06 interest rates applicable to all categories of FFELP loans will be distributed when this information becomes available at the end of June.

Any questions related to this Bulletin should be directed to the UHEAA Policy and Training Department at 801.321.7166 or by e-mail to mjohnson@utahsbr.edu.