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<p><span style="font-family:"Georgia","serif";color:#4F3E3F">The Department of Education (ED) has released the special allowance rates for the quarter ending
<b>June 30, 2012</b>.</span><span style="font-family:"Georgia","serif";color:#EBE7B1"><o:p></o:p></span></p>
<p style="mso-margin-top-alt:5.0pt;margin-right:.5in;margin-bottom:5.0pt;margin-left:.5in">
<u><span style="font-family:"Georgia","serif";color:#4F3E3F">Commercial Paper<o:p></o:p></span></u></p>
<p style="mso-margin-top-alt:5.0pt;margin-right:.5in;margin-bottom:5.0pt;margin-left:.5in">
<span style="font-family:"Georgia","serif";color:#4F3E3F">In calculating quarterly Special Allowance commercial paper rates, ED is required to determine “the average of the bond equivalent rates of the quotes of the 3-month commercial paper (financial) rates
in effect for each of the days in such quarter as reported by the Federal Reserve in Publication H-15 (or its successor) for such 3-month period.” For days when a rate is unavailable, ED has used the previous available rate.</span><span style="font-family:"Georgia","serif";color:#4CA9C5">
</span><span style="font-family:"Georgia","serif";color:#4F3E3F">Therefore, for the quarter ending<b>
</b><b>June 30, 2012</b>, the average rate used to compute the commercial paper rate will be<b> 0.</b><b>20 percent</b>.</span><span style="font-family:"Georgia","serif";color:#4CA9C5"><o:p></o:p></span></p>
<p style="mso-margin-top-alt:5.0pt;margin-right:.5in;margin-bottom:5.0pt;margin-left:.5in">
<u><span style="font-family:"Georgia","serif";color:#4F3E3F">LIBOR Rate<o:p></o:p></span></u></p>
<p style="mso-margin-top-alt:5.0pt;margin-right:.5in;margin-bottom:5.0pt;margin-left:.5in">
<span style="font-family:"Georgia","serif";color:#4F3E3F">In calculating quarterly Special Allowance LIBOR rates, ED is required to use “the average of the bond equivalent rates of the quotes of the 1-month London Interbank Offered Rate (LIBOR) in effect for
each of the days in such quarter as compiled and released by the British Bankers Association” in place of the commercial paper rate. Therefore, for the quarter ending
<b>June 30, 2012</b>, the average rate used to compute the LIBOR rate will be</span><span style="font-family:"Georgia","serif";color:#4CA9C5">
</span><b><span style="font-family:"Georgia","serif";color:#4F3E3F">0.25 percent</span></b><span style="font-family:"Georgia","serif";color:#4F3E3F">.</span><span style="font-family:"Georgia","serif";color:#4CA9C5"><o:p></o:p></span></p>
<p style="mso-margin-top-alt:5.0pt;margin-right:.5in;margin-bottom:5.0pt;margin-left:.5in">
<u><span style="font-family:"Georgia","serif";color:#4F3E3F">Treasury Bill Rate<o:p></o:p></span></u></p>
<p style="mso-margin-top-alt:5.0pt;margin-right:.5in;margin-bottom:5.0pt;margin-left:.5in">
<span style="font-family:"Georgia","serif";color:#4F3E3F">In calculating quarterly Special Allowance Treasury Bill rates for loans made prior to January 1, 2000, pursuant to section 438, ED is required to use “the average of the bond equivalent rates of the
ninety-one day Treasury bills as published by the Department of the Treasury.” Therefore, for the quarter ending</span><span style="font-family:"Georgia","serif";color:#4CA9C5">
</span><b><span style="font-family:"Georgia","serif";color:#4F3E3F">June 30, 2012</span></b><span style="font-family:"Georgia","serif";color:#4F3E3F">, the average rate used to compute the Treasury Bill rate will be</span><span style="font-family:"Georgia","serif";color:#4CA9C5">
</span><b><span style="font-family:"Georgia","serif";color:#4F3E3F">0.09 percent</span></b><span style="font-family:"Georgia","serif";color:#4F3E3F">.<o:p></o:p></span></p>
<p class="MsoNormal" style="mso-margin-top-alt:auto;mso-margin-bottom-alt:auto"><a href="http://www.ifap.ed.gov/ffelspecrates/SAPmemo070512.html" title="blocked::http://ifap.ed.gov/ffelspecrates/SAPmemo040810.html
blocked::http://www.ifap.ed.gov/ffelspecrates/071609SAPMemo.html"><span style="font-family:"Georgia","serif";color:#4CA9C5">Click
here</span></a><span style="font-family:"Georgia","serif";color:#4CA9C5"> </span>
<span style="font-family:"Georgia","serif";color:#4F3E3F">to view ED’s announcement regarding the new rates. If you have questions, please contact OCAP’s Policy, Compliance and Training department at 405.234.4432, 800.247.0420 (toll free) or
</span><a href="mailto:pct@ocap.org"><span style="font-family:"Georgia","serif";color:#4CA9C5">pct@ocap.org</span></a><u><span style="font-family:"Georgia","serif";color:#4CA9C5">.</span></u><span style="font-family:"Georgia","serif";color:#4CA9C5">
</span><span style="font-family:"Georgia","serif";color:#4F3E3F">We're here to help!</span><span style="font-family:"Georgia","serif""><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Georgia","serif";color:#4F3E3F"><o:p> </o:p></span></p>
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