Consolidation Loan Interest Rate Update

Consolidation Loans that Include Heal Loans
The maximum interest rate for the portion of each Consolidation loan that is attributable to a loan made under the Health Education Assistance Loan (HEAL) program for the period July 1, 1999 through June 30, 2000 is 7.60 percent. The interest rate is equal to the average of the bond equivalent rates of the 91-day Treasury bill auctioned for the quarter ending June 30, 4.60 percent plus 3.0 percent.

Correction to ED's New Consolidation Interest Rates
The Department of Education (ED) published a memo on June 4, 1999. The correct interest rate calculation for loans made before July 1, 1994 is the weighted average of the interest rates on the loans consolidated, rounded to the nearest whole percent, but may not be less than 9 percent.