PUBLIC LAW 103-66 —AUG. 10, 1993 107 STAT. 365 "(1) IN GENERAL. —Notwithstanding subsections (a), (b), (d), and (e) of this section, with respect to any loan made, insured, or guaranteed under this part (other than a loan made pursuant to section 428B or 428C) 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) 3.10 percent, except that such rate shall not exceed 8.25 percent. \2) CONSULTATION.—The Secretary shall determine the applicable rate of interest under paragraph (1) after consultation with the Secretary of the Treasury and shall publish such rate in the Federal Ilegister as soon as practicable after the date of determination.
- (g) IN SCHOOL AND GRACE PERIOD RULES.—
"(1) GENERAL RULE.—Notwithstanding the provisions of subsection (f), but subject to subsection (h), with respect to any loan under section 428 or 428H of this part for which the first disbursement is made on or after July 1, 1995, the applicable rate of interest for interest which accrues— "(A) prior to the beginning of the repayment period of the loan; or "(B) 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) or 427(a)(2)(C), shall not exceed the rate determined under paragraph (2). "(2) RATE DETERMINATION.—For purposes of paragraph (1), the rate determined under this paragraph 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 eqxiivalent rate of 91-day Treasury bills auctioned at the final auction prior to such June 1; plus "(B) 2.5 percent, except that such rate shall not exceed 8.25 percent. "(3) CONSULTATION. —The Secretary shall determine the applicable rate of interest under this subsection after consultation with the Secretary of the Treasury and shall publish such rate in the Federal Register as soon as practicable after the date of determination. "(h) INTEREST RATES FOR NEW LOANS AFTER JULY 1, 1998.— "(1) IN GENERAL.— Notwithstanding subsections (a), (b), (d), (e), (f), and (g) of this section, with respect to any loan made, insured, or guaranteed under this part (other than a loan made pursuant to sections 428B and 428C) for which the first disbursement is 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— "(A) the bond equivalent rate of the securities with a comparable maturity as established by the Secretary; plus "(B) 1.0 percent,
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