The potential interest rate increase affecting new student loans originated via the government direct lending program will not affect existing FFELP SLABS deals, according to an emailed note from Standard & Poor's this morning.

The government lowered the interest rate on these loans to the current 3.4% from 6.8% in stages, the rating agency reported. If there is Congress does not act, the rate will revert back to 6.8% for new loans on July 1.

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