Filed Under Rule 424 (b)(3)
                              Registration Statement No. 33-54359


            SUPPLEMENT NO. 21 TO PROSPECTUS DATED JULY 7, 1994
                      (AS SUPPLEMENTED JULY 14, 1994)

AT&T CAPITAL CORPORATION


Medium Term Notes, Series 2


Due Nine Months or More From Date of Issue.


Issue Price:   SEE BELOW
               (as a percent of principal amount)

               
               Interest rates offered by the Company with respect to the
               Notes may differ depending upon, among other things, the
               aggregate principal amount of Notes purchased in any single
               transaction.  Merrill Lynch & Co., Merrill Lynch, Pierce,
               Fenner & Smith Incorporated has purchased the Notes as
               principal at a discount equal to 99.60% of the principal
               amount offered hereby, for resale to investors and other
               purchasers at varying prices related to prevailing market
               prices at the time of resale.

Minimum Denominations:        $1,000

Interest Payment Dates:       February 15 and August 15 of each year, and on
                              the Maturity Date.

Issue Date:                   30-Jan-95

Maturity Date:           30-Dec-96

Principal Amount:             $10,000,000.00

                                                  Interest Rate
Range of Maturities                                 Per Annum 
- -------------------                               -------------

From 1 year to 2 years ............................ 7.68%


Date of Sale:  January 13, 1995

Redemption:

     Check applicable sentence.
      X  The Notes cannot be redeemed prior to maturity
     ---
         The Notes may be redeemed prior to maturity
     ---
     Redemption Date:              Redemption Price:  
                     -----------                    ------------
                              (as a percent of principal amount)
Repayment:

     Check applicable sentence.  
      X  The Notes cannot be repaid prior to maturity.  
     ---
         The Notes may be repaid prior to maturity.
     ---
     Repayment Date:               Repayment Price:
                     ------------                   ------------
                              (as a percent of principal amount)