[Lender] Special Allowance Rates

[Caddell, Angela]

The Department of Education (ED) has released the special allowance
rates for the quarter ending March 31, 2009.  Due to changing market
conditions, for the period ending March 31, 2009 ED is reverting to the
previous method of determining the average of the bond equivalent rates
of the quotes of the 3-month commercial paper (financial) rates. For
days when a rate is unavailable, ED has used the previous available
rate. Therefore, for the quarter ending March 31, 2009, the average rate
used to compute special allowance will be 0.74 percent.

Pursuant to the Master Participation Agreement(s) under ED's loan
participation purchase program for 2008-2009 loans, the 0.74 percent
rate is also used to determine the Participant Yield (i.e., yield owed
to ED). The calculated Participation Yield rate is available in an
Ensuring Continued Access to Student Loans (ECASLA) announcement
<http://www.federalstudentaid.ed.gov/ffelp/library/EA57.doc> .

For some loans, the special allowance rate is calculated by using the
average of the bond equivalent rates of the 91-day Treasury bills as
published by the Department of the Treasury.  For the quarter ending
March 31, 2009, the average of the rates is 0.23 percent. 

Click here <http://www.ifap.ed.gov/ffelspecrates/041609SAPMemo.html>  to
view ED's announcement regarding the new rates.  If you have questions,
please contact OGSLP's Policy, Compliance and Training department at
405.234.4432, 800.247.0420 (toll free) or pct at ogslp.org
<mailto:pct at ogslp.org> . We're here to help! 

 

________________________________

Angela O. Caddell 
Director for Communications, Financial Education, and Outreach  

OGSLP Communications
405.234.4452 
800.522.8506 (TDD/TRS) 
800.247.0420 (toll-free)
gslcommunications at ogslp.org    
www.ogslp.org <http://www.ogslp.org>    

 
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