Special Allowance Rates
Special Allowance Rates for Stafford and PLUS loans for the Quarter ending March 31, 2010
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 March 31, 2010 averaged .11%. 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 |
| 3.28% 3.43% 7.00% 8.00% |
0.08% 0.00% 0.00% 0.00% |
0.0200% 0.00% 0.00% 0.00% |
SD |
| 3.28% | 0.00% | 0.00% | SE |
| 3.28% 3.58% |
0.00% 0.00% |
0.00% 0.00% |
SG |
| 2.68% | 0.00% | 0.00% | SH |
| 1.88% | 0.43% | 0.1075% | SJ |
| 2.48% | 0.43% | 0.1075% | SK |
For the quarter ending March 31, 2010, the average Commercial Paper (CP) rate—as calculated by the U.S. Department of Education—was .21%. 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* |
|---|---|---|---|
| 1.88% | 0.07% | 0.0175% | CA |
| 2.48% | 0.07% | 0.0175% | CB |
| 3.28% (PLUS) | 0.00% | 0.00% | CD |
| 1.88% 6.80% |
0.07% (4.85%) |
0.0175% (1.2125%) |
CE |
| 2.48% 6.80% |
0.07% (4.25%) |
0.0175% (1.0625%) |
CF |
| 3.28% (PLUS) 8.50% (PLUS) |
(0.43%) (5.65%) |
(0.1075%) (1.4125%) |
CH |
| 5.60% 6.00% 6.80% |
(4.20%) (4.60%) (5.40%) |
(1.0500%) (1.1500%) (1.3500%) |
CI |
| 5.60% 6.00% 6.80% |
(3.60%) (4.00%) (4.80%) |
(0.9000%) (1.0000%) (1.2000%) |
CJ |
| 8.50% (PLUS) | (6.50%) | (1.6250%) | CM |
* For a detailed explanation of the Special Allowance codes, please view 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.