PUBLIC LAW 105-244 —OCT. 7, 1998 112 STAT. 1681 "(11) by subtracting the applicable interest rates on such loans from such average bond equivalent rate; "(III) by adding 2.8 percent to the resultant percent; and "(IV) by dividing the resultsint percent by 4. "(ii) IN SCHOOL AND GRACE PERIOD. — In the case of any loan for which the first disbursement is made on or after October 1, 1998, and before July 1, 2003, and for which the applicable rate of interest is described in section 427A(k)(2), clause (i)(III) of this subparagraph shall be applied by substituting '2.2 percent' for *2.8 percent'. "(iii) PLUS LOANS.— In the case of any loan for which the first disbursement is made on or after October 1, 1998, and before July 1, 2003, and for which the applicable rate of interest is described in section 427A(k)(3), clause (i)(III) of this subparagraph shall be applied by substituting *3.1 percent' for *2.8 percent', subject to clause (v) of this subparagraph. "(iv) CONSOLIDATION LOANS. —In the case of any consolidation loan for which the application is received by an eligible lender on or after October 1, 1998, and before July 1, 2003, and for which the applicable interest rate is determined under section 427A(k)(4), clause (i)(III) of this subparagraph shall be applied by substituting '3.1 percent' for *2.8 percent', subject to clause (vi) of this subparagraph. " (v) LIMITATION ON SPECIAL ALLOWANCES FOR PLUS LOANS.— In the case of PLUS loans made under section 428B and first disbursed on or after October 1, 1998, and before July 1, 2003, for which the interest rate is determined under section 427A(k)(3), a special allowance shall not be paid for such loan during any 12- month period beginning on July 1 and ending on June 30 unless, on the June 1 preceding such July 1— "(I) the bond equivalent rate of 91-day Treasury bills auctioned at the final auction held prior to such June 1 (as determined by the Secretary for purposes of such section); plus " (II) 3.1 percent, exceeds 9.0 percent. " (vi) LIMITATION ON SPECIAL ALLOWANCES FOR CONSOLIDATION LOANS.— In the case of consolidation loans made under section 428C and for which the application is received on or after October 1, 1998, and before July 1, 2003, for which the interest rate is determined under section 427A(k)(4), a special allowance shall not be paid for such loan during any 3- month period ending March 31, June 30, September 30, or December 31 unless— "(I) the average of the bond equivsdent rate of 91-day Treasury bills auctioned for such 3- month period; plus " (II) 3.1 percent, exceeds the rate determined under section 427A(k)(4)..
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