[ctcLinkfinaidsupport] 2024-2025 OY (Odd Year) Loan Debt Letter Templates UPDATED

[Jedidiah Lara]

Good morning FA!

We've updated all OY Loan Debt Letters to reflect the anticipated interest rate increase reported by NASFAA and the Electronic Announcement dated May 14, 2024.

Student Loan Interest Rates for 2024-25 Award Year Set to Increase<http://nasfaa.informz.net/z/cjUucD9taT0xMTA3MDYyOCZwPTEmdT0xMTY3MjIyMzAyJmxpPTEwMTk4MDIyMw/index.html>

Interest rates are determined each June 1 for the upcoming award year by adding a fixed percentage to the high yield of the 10-year Treasury note auctioned at the final auction prior to June 1. As a result of the<http://nasfaa.informz.net/z/cjUucD9taT0xMTA3MDYyOCZwPTEmdT0xMTY3MjIyMzAyJmxpPTEwMTk4MDIyNA/index.html> most recent auction, the interest rate for federal loans first disbursed on or after July 1, 2024 are expected to increase from 5.49% to 6.53% for undergraduate Direct Loans, from 7.05% to 8.08% for graduate/professional Direct Unsubsidized Loans, and from 8.05% to 9.08% for Parent and Grad PLUS loans. The interest rate caps for these loans are 8.25%, 9.5 %, and 10.5% respectively.

IMPORTANT Go to your OY Run Control ID to confirm that the new interest rate displays on the OY letter option. If you see an old interest rate, you may need to jiggle your OY Run Control.

Please take the following steps to jiggle your OY Loan Debt Letter Run Control ID.

1.       Navigate to Navigator > HighPoint > Message Center > Processes > Send Messages

2.       Select your OY Loan Debt Letter Run Control ID

3.       Select the blank option on the Letter dropdown menu

[cid:image004.png at 01DAC868.D237FED0]

 2.       Re-select the Loan Debt Letter OY, confirm the text now says, “6.53%” then select Save.

[cid:image001.png at 01DAC866.6A0060C0]

 For more information on the Loan Debt Letter, please look at the Loan Debt Letter section in the Loan Processing Guide (Loan Processing Business Process Guide | 9.2 FA - Financial Aid Business Process Guides | ctcLink Reference Center<https://ctclinkreferencecenter.ctclink.us/m/92436/l/798572-loan-processing-business-process-guide>)

 Thank you!

[Title: SBCTC logo - Description: Compass]Jedidiah Lara
Functional Analyst, Campus Solutions (Financial Aid)
Washington State Board for Community and Technical Colleges
jlara at sbctc.edu<mailto:jlara at sbctc.edu> | o: 360-704-3996



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