34 C.F.R. 34 CFR--PART 685
Title 34 - Education
Effective Date(s): September 8, 2006 68. Section 685.202 is amended by: A. In the heading of paragraph (a)(1)(iii), adding the words “and before July 1, 2006” immediately after the words “July 1, 1998”. B. Adding a new paragraph (a)(1)(iv). C. In the heading of paragraph (a)(2)(ii), adding the words “and before July 1, 2006” after the words “July 1, 1998”. D. Adding a new paragraph (a)(2)(iii). E. In paragraph (b)(2), adding the words “under the regulations that were in effect for consolidation applications received before July 1, 2006” after the words “grace period”. F. In paragraph (b)(3), removing the reference to “685.208(g)(5)” and adding, in its place, a reference to “85.208(l)(5)”. G. In paragraph (b)(4), removing the reference to “685.208(g)(5)” and adding, in its place, a reference to “685.208(l)(5)”. H. Revising paragraph (c)(1). The revisions and additions read as follows: (a) * * * (1) * * * (iv) Loans first disbursed on or after July 1, 2006. The interest rate is 6.8 percent. (2) * * * (iii) Loans first disbursed on or after July 1, 2006. The interest rate is 7.9 percent. (c) * * * (1)(i) For a Direct Subsidized or Direct Unsubsidized loan first disbursed prior to February 8, 2006, charges a borrower a loan fee not to exceed 4 percent of the principal amount of the loan; (ii) For a Direct Subsidized or Direct Unsubsidized loan first disbursed on or after February 8, 2006, but before July 1, 2007, charges a borrower a loan fee not to exceed 3 percent of the principal amount of the loan; (iii) For a Direct Subsidized or Direct Unsubsidized loan first disbursed on or after July 1, 2007, but before July 1, 2008, charges a borrower a loan fee not to exceed 2.5 percent of the principal amount of the loan; (iv) For a Direct Subsidized or Direct Unsubsidized loan first disbursed on or after July 1, 2008, but before July 1, 2009, charges the borrower a loan fee not to exceed 2 percent of the principal amount of the loan; (v) For a Direct Subsidized or Direct Unsubsidized loan first disbursed on or after July 1, 2009, but before July 1, 2010, charges the borrower a loan fee not to exceed 1.5 percent of the principal amount of the loan; (vi) For a Direct Subsidized or Direct Unsubsidized loan first disbursed on or after July 1, 2010, charges the borrower a loan fee not to exceed 1 percent of the principal amount of the loan; and (vii) Charges a borrower a loan fee of four percent of the principal amount of the loan on a Direct PLUS loan. * * * * *
Amendment from August 09, 2006
34 CFR--PART 685
Amendment(s) published August 9, 2006, in 71 FR 45711
§ 685.202 Charges for which Direct Loan Program borrowers are responsible.
