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Friday,

June 29, 2001

Part IV

Department of
Education
William D. Ford Federal Direct Loan
Program; Notice

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34768 Federal Register / Vol. 66, No. 126 / Friday, June 29, 2001 / Notices

DEPARTMENT OF EDUCATION and married or head-of-household the result by 100. (If your income is not listed
borrowers at various income and debt in the income percentage factors table,
William D. Ford Federal Direct Loan levels based on the updated income calculate the applicable income percentage
Program factor by following the instructions under the
percentage factors.
‘‘Interpolation’’ heading later in this notice.):
The updated income percentage • 88.77 × $1,973.17 ÷ 100 = $1,751.58
AGENCY: Department of Education.
factors, at any given income, may cause Step 3: Determine 20 percent of your
ACTION: Notice of the annual updates to a borrower’s payments to be slightly
the income contingent repayment (ICR) discretionary income. Because you are a
lower than they were in prior years. single borrower, subtract the poverty level for
plan formula. This updated amount more accurately a family of one, as published in the Federal
SUMMARY: The Secretary announces the reflects the impact of inflation on a Register on February 16, 2001 (66 FR 10695),
borrower’s current ability to repay. from your income and multiply the result by
annual updates to the ICR plan formula
20 percent:
for 2001. Under the William D. Ford Electronic Access to This Document • $31,455¥$8,590 = $22,865
Federal Direct Loan (Direct Loan) • $22,865 × 0.20 = $4,573
Program, borrowers may choose to repay You may review this document, as
Step 4: Compare the amount from Step 2
their student loans under the ICR plan, well as all other Department of with the amount from Step 3. The lower of
which bases the repayment amount on Education documents published in the the two will be your annual payment
the borrower’s income, family size, loan Federal Register, in text or Adobe amount. In this example, you will be paying
amount, and interest rate. Each year, we Portable Document Format (PDF) on the the amount calculated under Step 2. To
adjust the formula for calculating a Internet at the following site: http:// determine your monthly repayment amount,
www.ed.gov/legislation/FedRegister. divide the annual amount by 12.
borrower’s payment to reflect changes • $1,751.58 ÷ 12 = $145.97
To use PDF, you must have Adobe
due to inflation. This notice contains Example 2. In this example, you are
Acrobat Reader, which is available free
the required updates based on inflation, married. You and your spouse have a
at this site. If you have questions about
examples of how the calculation of the combined AGI of $59,440 and are repaying
using PDF, call the U.S. Government
monthly ICR amount is performed, the your loans jointly under the ICR plan. You
Printing Office (GPO), toll free, at 1– have no children. You have a Direct Loan
income percentage factors, the constant
888–293–6498; or in the Washington balance of $10,000, and your spouse has a
multiplier chart, and charts showing
DC, area at (202) 512–1530. Direct Loan balance of $15,000. Your interest
sample repayment amounts. These
Note: The official version of this document rate is 8.25 percent.
updates are effective from July 1, 2001
is the document published in the Federal Step 1: Add your and your spouse’s Direct
to June 30, 2002. Register. Free internet access to the official Loan balances together to determine your
FOR FURTHER INFORMATION CONTACT: Don edition of the Federal Register and the Code aggregate loan balance:
Watson, U.S. Department of Education, of Federal Regulations is available on GPO • $10,000 + $15,000 = $25,000
room 3045, ROB–3, 400 Maryland Access at: http://www.access.gpo.gov/nara/ Step 2: Determine the annual payment
Avenue, SW., Washington, DC 20202– index.html. based on what you would pay over 12 years
5400. Telephone: (202) 708–8242. If you (Catalog of Federal Domestic Assistance using standard amortization. To do this,
use a telecommunications device for the Number 84.268 William D. Ford Federal multiply your aggregate loan balance by the
Direct Loan Program) constant multiplier for 8.25 percent interest
deaf (TDD), you may call the Federal
(0.1315449). (The 8.25 percent interest rate
Information Relay Service (FIRS) at 1– Program Authority: 20 U.S.C. 1087 et seq. used in this example is the maximum interest
800–877–8339. Dated: June 27, 2001. rate charged for all Direct Loans excluding
Individuals with disabilities may Greg Woods, Direct PLUS Loans and may not be your
obtain this document in an alternative actual interest rate. You can view the
Chief Operating Officer.
format (e.g., Braille, large print, constant multiplier chart at the end of this
audiotape, or computer diskette) on Attachment—Examples of the Calculations notice to determine the constant multiplier
request to the contact person listed in of Monthly Repayment Amounts that you should use for the interest rate on
the preceding paragraph. Example 1 This example assumes you are your loan. If your exact interest rate is not
a single borrower with $15,000 in Direct listed, use the next highest for estimation
SUPPLEMENTARY INFORMATION: Direct
Loans, the interest rate being charged is 8.25 purposes.)
Loan Program borrowers may choose to • 0.1315449 × $25,000 = $3,288.62
percent, and you have an adjusted gross
repay their Direct Loans under the ICR Step 3: Multiply the result of Step 2 by the
income (AGI) of $31,455.
plan. The attachment to this notice Step 1: Determine your annual payments income percentage factor shown in the
provides updates to four sources of based on what you would pay over 12 years income percentage factors table that
information: examples of how the using standard amortization. To do this, corresponds to your and your spouse’s
calculation of the monthly ICR amount multiply your loan balance by the constant income and then divide the result by 100. (If
is performed, the income percentage multiplier for 8.25 percent interest your and your spouse’s aggregate income is
factors, the constant multiplier chart, (0.1315449). The constant multiplier is a not listed in the income percentage factors
factor used to calculate amortized payments table, calculate the applicable income
and charts showing sample repayment percentage factor by following the
at a given interest rate over a fixed period of
amounts. instructions under the ‘‘Interpolation’’
time. (The 8.25 percent interest rate used in
We have updated the income this example is the maximum interest rate heading later in this notice.):
percentage factors to reflect changes charged for all Direct Loans excluding Direct • 109.40 × $3,288.62 100 = $3,597.75
based on inflation. We have revised the PLUS Loans and may not be your actual Step 4: Determine 20 percent of your
income percentage factor table by interest rate. You can view the constant discretionary income. To do this, subtract the
changing the dollar amounts of the multiplier chart at the end of this notice to poverty level for a family of 2, as published
incomes shown by a percentage equal to determine the constant multiplier that you in the Federal Register on February 16, 2001
the estimated percentage change in the should use for the interest rate on your loan. (66 FR 10695), from your aggregate income
Consumer Price Index for all urban If your exact interest rate is not listed, use the and multiply the result by 20 percent:
next highest for estimation purposes.) • $59,440 ¥ $11,610 = $47,830
consumers from December 2000 to • 0.1315449 × $15,000 = $1,973.17 • $47,830 × 0.20 = $9,566
December 2001. Further, we provide Step 2: Multiply the result of Step 1 by the Step 5: Compare the amount from Step 3
examples of monthly repayment amount income percentage factor shown in the with the amount from Step 4. The lower of
calculations and two charts that show income percentage factors table that the two will be your annual payment
sample repayment amounts for single corresponds to your income and then divide amount. You and your spouse will pay the

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Federal Register / Vol. 66, No. 126 / Friday, June 29, 2001 / Notices 34769

amount calculated under Step 3. To Step 2: Subtract the lower amount from the • $3,954 ÷ $3,996 = 0.98949
determine your monthly repayment amount, higher amount (for this discussion, we will Step 6: Multiply the result of Step 5 by the
divide the annual amount by 12. call the result the ‘‘income interval’’): income percentage factor interval:
• $3,597.75 ÷ 12 = $299.81 • $25,042 ¥ $21,046 = $3,996 • 8.44% × 0.98949% = 8.35%
Step 3: Determine the difference between Step 7: Add the result of Step 6 to the
Interpolation: If your income does not
the two income percentage factors that are lower of the two income percentage factors
appear on the income percentage factors given for these incomes (for this discussion,
table, you will have to calculate the income used in Step 3 to calculate the income
we will call the result, the ‘‘income percentage factor interval for $25,000 in
percentage factor through interpolation. For percentage factor interval’’): income:
example, assume you are single and your • 80.33% ¥ 71.89% = 8.44% • 8.35% + 71.89% = 80.24% (rounded to
income is $25,000. Step 4: Subtract from your income the the nearest hundredth)
Step 1: Find the closest income listed that closest income shown on the chart that is less The result is the income percentage factor
is less than your income of $25,000 and the than your income of $25,000:
that will be used to calculate the monthly
closest income listed that is greater than your • $25,000 ¥ $21,046 = $3,954
repayment amount under the ICR plan.
Step 5: Divide the result of Step 4 by the
income of $25,000.
income interval determined in Step 2: BILLING CODE 4000–01–P

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34770 Federal Register / Vol. 66, No. 126 / Friday, June 29, 2001 / Notices

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Federal Register / Vol. 66, No. 126 / Friday, June 29, 2001 / Notices 34771

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34772 Federal Register / Vol. 66, No. 126 / Friday, June 29, 2001 / Notices

[FR Doc. 01–16573 Filed 6–28–01; 8:45 am]


BILLING CODE 4000–01–C

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