Sallie Mae 2008 Annual Report Download - page 226

Date of First Disbursement Special Allowance Margin
From 01/01/00 through 09/30/07 ................ 1.74% for Stafford Loans that are in In-School, Grace
or Deferment
2.34% for Stafford Loans that are in Repayment
2.64% for PLUS and FFELP Consolidation Loans
From 10/01/07 and after ...................... 1.19% for Stafford Loans that are in In-School, Grace
or Deferment
1.79% for Stafford Loans that are in Repayment and
PLUS
2.09% for FFELP Consolidation Loans
Note: The margins for loans held by an eligible not-
for-profit holder is higher by 15 basis points.
• Special Allowance Payments are available on variable rate PLUS Loans and SLS Loans only if the
variable rate, which is reset annually, exceeds the applicable maximum borrower rate. Effective July 1,
2006, this limitation on special allowance for PLUS loans made on and after January 1, 2000 is
repealed. The variable rate is based on the weekly average one-year constant maturity Treasury yield
for loans made before July 1, 1998 and based on the 91-day Treasury bill for loans made on or after
July 1, 1998. The maximum borrower rate for these loans is between 9 percent and 12 percent.
Fees
Origination Fee. An origination fee must be paid to ED for all Stafford and PLUS loans originated in
the FFELP. An origination fee is not paid on a Consolidation loan.
A 3% origination fee must be deducted from the amount of each PLUS loan.
An origination fee may be, but is not required to be deducted from the amount of a Stafford loan
according to the following table:
Date of First Disbursement Maximum Origination Fee
Before 07/01/06 ............................................. 3%
From 7/01/06 through 06/30/07 ................................. 2%
From 7/01/07 through 06/30/08 ................................. 1.5%
From 7/01/08 through 06/30/09 ................................. 1%
From 7/01/09 through 06/30/10 ................................. .5%
From 7/01/10 and after ....................................... 0%
Federal Default Fee. A federal default fee up to 1% (previously called an insurance premium) may be,
but is not required to be deducted from the amount of a Stafford and PLUS loan. A federal default fee is not
deducted from the amount of a Consolidation loan.
Lender Loan Fee. A lender loan fee is paid to ED on the amount of each loan disbursement of all
FFELP loans. For loans disbursed from October 1, 1993 to September 30, 2007, the fee was .50% of the loan
amount. The fee increased to 1.0% of the loan amount for loans disbursed on or after October 1, 2007.
Loan Rebate Fee. A loan rebate fee of 1.05% is paid annually on the unpaid principal and interest of
each Consolidation loan disbursed on or after October 1, 1993. This fee was reduced to .62% for loans made
from October 1, 1998 to January 31, 1999.
Stafford Loan Program
For Stafford Loans, the HEA provides for:
• federal reinsurance of Stafford Loans made by eligible lenders to qualified students;
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