PUBLIC LAW 103-66—AUG. 10, 1993 107 STAT. 347 "(1) RATES FOR FDSL AND FDUSL.— For Federal Direct Staf- ford Loans and Federal Direct Unsubsidized Stafford Loans for which the first disbursement is made on or after July 1, 1994, the applicable rate of interest shall, during any 12- month period beginning on July 1 and ending on June 30, be determined on the preceding June 1 and be equal to— "(A) the bond equivalent rate of 91-day Treasury bills auctioned at the final auction held prior to such June 1; plus "(B) 3.1 percent, except that such rate shall not exceed 8.25 percent. ^(2) IN SCHOOL AND GRACE PERIOD RULES. — (A) Notwithstanding the provisions of paragraph (1), but subject to paragraph (3), with respect to any Federal Direct Stafford Loan or Federal Direct Unsubsidized Stafford Loan for which the first disbursement is made on or afl«r July 1, 1995, the applicable rate of interest for interest which accrues— "(i) prior to the beginning of the repayment period of the loan; or "(ii) during the period in which principal need not be paid (whether or not such principal is in fact paid) by reason of a provision described in section 428(b)(l)(M) or427(a)(2)(C), shall not exceed the rate determined under subparagraph (B). "(B) For the purpose of subparagraph (A), the rate determined under this subparagraph shall, during any 12-month period beginning on July 1 and ending on June 30, be determined on the preceding June 1 and be equal to— "(i) the bond equivalent rate of 91-day Treasury bills auctioned at the final auction prior to such June 1; plus " (ii) 2.5 percent, except that such rate shall not exceed 8.25 percent. "(3) OUT-YEAR RULE. —Notwithstanding paragraphs (1) and (2), for Federal Direct Stafford Loans and Federal Direct Unsubsidized Stafford Loans made on or after July 1, 1998, the applicable rate of interest shall, during any 12-month period beginning on July 1 and ending on June 30, be determined on the preceding Jiuie 1 and be equal to— "(A) the bond equivalent rate of the security with a comparable maturity as established by the Secretary; plus "(B) 1.0 percent, except that such rate shall not exceed 8.25 percent. "(4) RATES FOR FDPLUS. —(A) For Federal Direct PLUS Loans for which the first disbursement is made on or after July 1, 1994, the applicable rate of interest shall, during any 12-month period beginning on July 1 and ending on June 30, be determined on the preceding June 1 and be equal to— "(i) the bond equivalent rate of 52-week Treasury bills auctioned at final auction held prior to such June 1; plus "(ii) 3.1 percent, except that such rate shall not exceed 9 percent. (B) For Federal Direct PLUS loans made on or after July 1, 1998, the applicable rate of interest shall, during any 12- month period beginning on July 1 and ending on June 30, be determined on the preceding June 1 and be equal to— "(i) the bond equivalent rate of the security with a comparable maturity as established by the Secretary; plus
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