the sum of— (1) for the portion of the principal amount of the loan that is equal to (or less than) the maximum annual amount a student may borrow under subsection (c)(1) , 1.0 percent of such portion of the principal amount of the loan, plus (2) for the portion of the principal amount of the loan that exceeds the maximum annual amount a student may borrow under subsection (c)(1) , as authorized by subsection (c)(2) , 4.0 percent of such portion of the principal amount of the loan. (e) Interest rates (1) In general Except as provided in paragraph (2) , for IDEA Loans for which the first disbursement is made on or after July 1, 2017, the applicable rate of interest shall, during any 12-month period beginning on July 1 and ending on June 30, be determined on the preceding June 1 and be equal to— (A) the bond equivalent rate of 10-year Treasury bills auctioned at the final auction held prior to such June 1, plus (B) 3.0 percent. (2) Certain graduate and professional students Notwithstanding paragraph (1) , with respect to graduate or professional students who have increased maximum annual and aggregate loan limits under subsection (c)(2) , for IDEA Loans for which the first disbursement is made on or after July 1, 2017, the applicable rate of interest shall be the weighted average of— (A) the rate determined under paragraph (1) for the portion of the principal amount of the loan that is equal to (or less than) the maximum annual amount a student may borrow under subsection (c)(1)