The U.S. Department of Education is required under section 438 of the Higher Education Act to calculate and issue the quarterly special allowance rates for three categories listed below.
The Treasury bill rate is the average of the bond equivalent rates of the 13-week Treasury bills as published by the U.S. Department of the Treasury. For the quarter ending Sept. 30, 2022, the average of the rates is 2.74%.
The commercial paper rate is 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 the quarter ending Sept. 30, 2022, the average rate used to compute special allowance is 2.86%.
The London InterBank Offered Rate (LIBOR) rate is the average of the bond equivalent rates of the quotes of the 1-month in effect for each of the days in such quarter as compiled and released by the British Bankers Association. For the quarter ending Sept. 30, 2022, the average rate used to compute special allowance is 2.51%.
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Attachments A, B, C, and D contain the quarterly special allowance rates computed pursuant to section 438.
Federal Family Education Loan Program Special Allowance Rates for the Quarter Ending Sept. 30, 2022 in PDF Format, 281KB, 15 Pages