[Lender] Special Allowance Rates for the Quarter Ending December 31, 2009

[McCreary, Matt]

The Department of Education (ED) has released the special allowance
rates for the quarter ending December 31, 2009. 
Due to changing market conditions, for the period ending December 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 December 31, 2009, the average rate
used to compute special allowance will be 0.21 percent. 

Pursuant to the Master Participation Agreement(s) under ED's loan
participation purchase program for 2008-2009 loans, the 0.41 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
December 31, 2009, the average of the rates is 0.07 percent. 

Click here
<http://www.ifap.ed.gov/ffelspecrates/attachments/SAPMemo010810.pdf>  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! 

 

Matt McCreary

Policy Analyst

 

Oklahoma Guaranteed Student Loan Program

a division of the Oklahoma State Regents for Higher Education

 

405-234-4296 - phone

405-234-4549 - facsimile

mmccreary at ogslp.org - e-mail

 

Note: This communication and attachments, if any, are intended solely
for the use of the addressee hereof. In addition, this information and
attachments, if any, may contain information that is confidential,
privileged and exempt from disclosure under applicable law including,
but not limited to, the Privacy Act of 1974. If you are not the intended
recipient of this information, you are prohibited from reading,
disclosing, reproducing, distributing, disseminating, or otherwise using
this information. If you have received this message in error, please
promptly notify the sender and immediately delete this communication
from your system.

 

-------------- next part --------------
An HTML attachment was scrubbed...
URL: http://lists.onenet.net/pipermail/lender/attachments/20100114/5aea9990/attachment.html