<html>
<head>
<meta http-equiv="Content-Type" content="text/html; charset=us-ascii">
<meta name="Generator" content="Microsoft Exchange Server">
<!-- converted from rtf -->
<style><!-- .EmailQuote { margin-left: 1pt; padding-left: 4pt; border-left: #800000 2px solid; } --></style>
</head>
<body>
<font face="Georgia" size="3"><span style="font-size:12pt;">
<div style="margin-top:5pt;margin-bottom:5pt;"><font color="#4F3E3F">The Department of Education (ED) has released the special allowance rates for the quarter ending <font color="#4CA9C5"><b>September 30, 2012</b></font>.</font></div>
<div style="margin-top:5pt;margin-bottom:5pt;padding-right:36pt;padding-left:36pt;">
<font color="#4F3E3F"><u>Commercial Paper</u></font></div>
<div style="margin-top:5pt;margin-bottom:5pt;padding-right:36pt;padding-left:36pt;">
<font 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.<font color="#4CA9C5"> </font>Therefore, for the quarter ending<b>
</b><font color="#4CA9C5"><b>September 30, 2012</b></font>, the average rate used to compute the commercial paper rate will be<b> </b><font color="#4CA9C5"><b>0.21 percent</b></font>.</font></div>
<div style="margin-top:5pt;margin-bottom:5pt;padding-right:36pt;padding-left:36pt;">
<font color="#4F3E3F"><u>LIBOR Rate</u></font></div>
<div style="margin-top:5pt;margin-bottom:5pt;padding-right:36pt;padding-left:36pt;">
<font 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 <font color="#4CA9C5"><b>September 30, 2012</b></font>, the average rate used to compute the LIBOR rate will be<font color="#4CA9C5">
</font><font color="#4CA9C5"><b>0.24 percent</b></font>.</font></div>
<div style="margin-top:5pt;margin-bottom:5pt;padding-right:36pt;padding-left:36pt;">
<font color="#4F3E3F"><u>Treasury Bill Rate</u></font></div>
<div style="margin-top:5pt;margin-bottom:5pt;padding-right:36pt;padding-left:36pt;">
<font 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<font color="#4CA9C5"> </font><font color="#4CA9C5"><b>September 30, 2012</b></font>, the average rate used to compute the Treasury Bill rate will be<font color="#4CA9C5"> </font><font color="#4CA9C5"><b>.10
percent</b></font>.</font></div>
<div style="margin-top:5pt;margin-bottom:5pt;"><font face="Times New Roman"><a href="http://www.ifap.ed.gov/ffelspecrates/SAPmemo100312.html"><font face="Georgia" color="#A7C766"><b><u>Click here</u></b></font></a><font face="Georgia" color="#4CA9C5"> </font><font face="Georgia" color="#4F3E3F">to
view ED’s announcement regarding the new rates. If you have questions, please contact OCAP’s Compliance department at 405.234.4432, 800.247.0420 (toll free) or </font><a href="mailto:pct@ocap.org"><font face="Georgia" color="#A7C766"><b><u>pct@ocap.org</u></b></font></a><font face="Georgia" color="#A7C766"><u>.</u></font><font face="Georgia" color="#A7C766">
</font><font face="Georgia" color="#4F3E3F">We're here to help!</font></font></div>
<div style="margin-top:5pt;margin-bottom:5pt;"><font face="Times New Roman" color="#A49B2A"> </font></div>
<div style="margin-top:5pt;margin-bottom:5pt;"><font face="Century Schoolbook" color="#BD7B01"><b>Matt McCreary
<br>
Policy Analyst </b></font></div>
<div style="margin-top:5pt;margin-bottom:5pt;"><font face="Century Schoolbook" color="#8E5C01"><b>Oklahoma College Assistance Program (OCAP)
<br>
</b><font size="2"><span style="font-size:10pt;"><i>a division of the Oklahoma State Regents for Higher Education</i></span></font></font></div>
<div><font face="Century Schoolbook" size="2" color="#5F3E00"><span style="font-size:11pt;"><b>405-234-4296 - phone
<br>
405-234-4549 - fax </b></span></font></div>
<div><font face="Century Schoolbook" size="2" color="#5F3E00"><span style="font-size:11pt;"><b>800-522-8506 (TDD/TRS)</b></span></font></div>
<div><font face="Times New Roman" color="#5E3D00"> </font></div>
<div><font face="Times New Roman"><a href="http://www.ocap.org"><font face="Century Schoolbook" size="2" color="#211F08"><span style="font-size:11pt;"><b><u>www.ocap.org</u></b></span></font></a></font></div>
<div><font face="Times New Roman"><a href="http://www.ucango2.org"><font face="Century Schoolbook" size="2" color="#211F08"><span style="font-size:11pt;"><b><u>www.ucango2.org</u></b></span></font></a></font></div>
<div><font face="Times New Roman"><a href="http://www.oklahomamoneymatters.org"><font face="Century Schoolbook" size="2" color="#211F08"><span style="font-size:11pt;"><b><u>www.oklahomamoneymatters.org</u></b></span></font></a></font></div>
<div><font face="Times New Roman"> </font></div>
<div><font face="Times New Roman"> </font></div>
</span></font>
</body>
</html>