STUDENT LOAN INTEREST RELIEF

HIGHWAY BILL WITH STUDENT LOAN INTEREST RELIEF AND PENSION CHANGES SIGNED INTO LAW.


On July 6, President Obama signed into law H.R. 4348, the “Moving Ahead for Progress in the 21st Century Act” (“the Act”). The Act was approved by both the House and Senate on June 29th. Among other things, the Act authorizes various highway and transportation funding for two years and includes a provision to prevent an increase in the student loan interest rates. The Act also includes a number of pension-related tax changes, including a funding break for employers with pension plans, an extension of a provision allowing excess pension assets to be used for future retiree health benefits, and a new provision allowing excess pension assets to be used for certain retiree life insurance.

Applicable Federal Rates (AFRs) for July

The Applicable Federal Rates (AFRs) for the month of July are as follows:

	Annual	Semiannual	Quarterly	Monthly
Short-term (≤3 years)	0.27%	0.27%	0.27%	0.27%
Mid-term (>3 years but ≤9 years)	1.05%	1.05%	1.05%	1.05%
Long-term (>9 years)	3.02%	3.00%	2.99%	2.98%

4th of July Holiday Office Hours

In observance of the 4th of July Holiday, tys, llp offices will close at 12:00pm on Tuesday, July 3, 2012.

We will re-open Thursday, July 5, 2012.

Please have a safe and happy holiday!