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OK This again has to do with the Higher Education Act ("HEA"). Congress sets the rates when it renews the HEA, usually about every five years. In the 1990's, the interest rate has generally been a variable one, where you take the 91-day treasury bill as it was auctioned on a certain date, and add a certain number percent on to that to get the rate that is charged to the student.

Somewhere on your original loan note it's gonna tell you what your rate is.

I don't know these by heart, but I have a general idea if you say when you took out your loan, what your interest being charged is. But you should really look at your original contract--it's on there somewhere.

If the loan refers to "basis points" (I forget if they do or not), one basis point is .01%. (point-zero-one percent) When I am talking about the .8% "timely payer" discount, I usually say 80 basis points. It's a lot easier when I'm dealing with these "point-something-percents."

It think the loan contract probably just gives it in percents, but if it says 230 basis points, you know this to be 2.3%.
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