The U.S. Department of Education has released the Federal Family Education Loan (FFEL) Program Special Allowance Rates for the quarter ending March 31, 2026, outlining key interest rate calculations that impact lenders’ return on eligible FFEL loans. This update provides important reference points for compliance, financial planning, and operational accuracy. Below is an overview of the newly published rates and what they mean for FFEL Program participants.
Treasury Bill Rate
The Treasury bill rate is the average of the bond equivalent rates of the 13-week Treasury bills as published by the U.S. Department of the Treasury. For the quarter ending March 31, 2026, the average of the rates is 3.68%.
Commercial Paper Rate
The commercial paper rate is the average of the bond equivalent rates of the quotes of the 3-month commercial paper financial rates in effect for each of the days in such quarter as reported by the Federal Reserve in Publication H-15 (or its successor) for such 3-month period. For the quarter ending March 31, 2026, the average rate used to compute special allowance is 3.76%.
SOFR Rate
The Secured Overnight Financing Rate (SOFR) is the average of the bond equivalent rates of the quotes of the 30-day SOFR in effect for each day in such quarter as complied by the Federal Reserve Bank of New York, after adjusting daily by adding the Tenor Spread Adjustment. For the quarter ending March 31, 2026, the average of the rates is 3.86%.
For more information, see the official annoucment:
Federal Family Education Loan Program Special Allowance Rates for the Quarter Ending March 31, 2026