34 C.F.R. 34 CFR--PART 682
Title 34 - Education
Effective Date(s): September 8, 2006 38. Section 682.202 is amended by: A. In paragraph (a)(1)(viii), by adding after the words “July 1, 1998,” the words “ and prior to July 1, 2006,”. B. Adding a new paragraph (a)(1)(ix). C. In paragraph (a)(2)(vi)(A), adding after the words “July 1, 2001,” the words “and prior to July 1, 2006,”. D. Adding a new paragraph (a)(2)(vii). E. Revising paragraph (c)(1). F. Revising paragraph (d). The revisions and additions read as follows: (a) * * * (1) * * * (ix) For a Stafford loan for which the first disbursement is made on or after July 1, 2006, the interest rate is 6.8 percent. (2) * * * (vii) For a PLUS loan first disbursed on or after July 1, 2006, the interest rate is 8.5 percent. * * * * * (c) Fees for FFEL Program loans. (1)(i) For Stafford loans first disbursed prior to July 1, 2006, a lender may charge a borrower an origination fee not to exceed 3 percent of the principal amount of the loan. (ii) For Stafford loans first disbursed on or after July 1, 2006, but before July 1, 2007, a lender may charge a borrower an origination fee not to exceed 2 percent of the principal amount of the loan. (iii) For Stafford loans first disbursed on or after July 1, 2007, but before July 1, 2008, a lender may charge a borrower an origination fee not to exceed 1.5 percent of the principal amount of the loan. (iv) For Stafford loans first disbursed on or after July 1, 2008, but before July 1, 2009, a lender may charge a borrower an origination fee not to exceed 1 percent of the principal amount of the loan. (v) For Stafford loans first disbursed on or after July 1, 2009, but before July 1, 2010, a lender may charge a borrower an origination fee not to exceed .5 percent of the principal amount of the loan. (vi) For Stafford loans first disbursed on or after July 1, 2010, a lender may not charge a borrower an origination fee. (vii) Except as provided in paragraph (c)(2) of this section, a lender must charge all borrowers the same origination fee. * * * * * (d) Insurance premium and Federal default fee. (1) For loans guaranteed prior to July 1, 2006, a lender may charge the borrower the amount of the insurance premium paid by the lender to the guarantor (up to 1 percent of the principal amount of the loan) if that charge is provided for in the promissory note. (2) For loans guaranteed on or after July 1, 2006, other than an SLS or PLUS loan refinanced under §682.209(e) or (f), a lender may charge the borrower the amount of the Federal default fee paid by the lender to the guarantor (up to 1 percent of the principal amount of the loan) if that charge is provided for in the promissory note. (3) If the borrower is charged the insurance premium or the Federal default fee, the amount charged must be deducted proportionately from each disbursement of the borrower's loan proceeds, if the loan is disbursed in more than one installment. (4) The lender shall refund the insurance premium or Federal default fee paid by the borrower in accordance with the circumstances and procedures applicable to the return of origination fees, as described in paragraph (c)(7) of this section. * * * * *
Amendment from August 09, 2006
34 CFR--PART 682
Amendment(s) published August 9, 2006, in 71 FR 45700
§ 682.202 Permissible charges by lenders to borrowers.
