,i  #aac? ,,congress  #a/ ,session  ,h4 
,r4 #aidf  ,,9 ,,! ,,h\se ,,(           
,,repres5tatives  ,may #i1 #bjac ,mr4   
,ti]ney 7= himself1 ,mr4 ,c\rtney1 &    
,mr4 ,george ,mill] ( ,cali=nia7        
introduc$ ! foll[+ bill2 :i* 0 ref]r$ to
 ! ,committee on ,education & ! ,work=ce
  ,a ,,bill  ,to am5d ! ,f$]al ,direct  
,loan ,program "u ! ,high] ,education   
,act ( #aife to provide = /ud5t loan    
af=dability1 & = o!r purposes4  #a4     
,%ort title ,?is ,act may be cit$ z !   
,responsible ,/ud5t ,loan ,solutions    
,act4  #b4 ,/ud5t ,loan ,af=dability    
7a7 ,t]ms & conditions ( f$]al direct   
loans ,section #dee ( ! ,high]          
,education ,act ( #aife 7#bj ,u4,s4,c4  
#ajhg;e7 is am5d$--  7#a7 9 subsection  
7a71 by add+ at ! end ! foll[+3  7#d7   
,f$]al ,direct ,/af=d ,loan limits = new
 loans on or aft] ,july #a1 #bjac  7,a7 
,aggregate loan limits ,not)/&+ any o!r 
provision ( ?is ,act1 ) respect to      
,f$]al ,direct ,/af=d ,loans = :i* !    
fir/ disbursem5t is made on or aft]     

,july #a1 #bjac1 ! aggregate unpaid     
pr9cipal am\nt = all su* loans made on  
or aft] su* date 7& includ+ ,f$]al      
,direct ,/af=d ,loans fir/ disburs$ be=e
 su* date7 to any /ud5t %all n at any "t
 exce$--  7i7 #ca1jjj1 9 ! case ( any   
dep5d5t /ud5t 7except an und]graduate   
dep5d5t /ud5t ^: p>5ts are unable to    
borr[ "u ! ,f$]al ,direct ,,plus ,loan  
,program7 :o has n successfully complet$
 a program ( und]graduate education2 or 
7ii7 #eg1ejj1 9 ! case ( any indep5d5t  
/ud5t1 or an und]graduate dep5d5t /ud5t 
^: p>5ts are unable to borr[ "u ! ,f$]al
 ,direct ,,plus ,loan ,program1 :o has n
 successfully complet$ a program (      
und]graduate education4  7,b7 ,annual   
loan limits ,not)/&+ any o!r provision (
 ?is ,act1 ) respect to ,f$]al ,direct  
,/af=d ,loans = :i* ! fir/ disbursem5t  
is made on or aft] ,july #a1 #bjac1 !   
maximum annual am\nt = all su* loans    
made on or aft] su* date a /ud5t :o has 
n successfully complet$ a program (     
und]graduate education may borr[ 9 any  

academic ye> %all n at any "t exce$--   
7i7 9 ! case ( a dep5d5t /ud5t 7except  
an und]graduate dep5d5t /ud5t ^: p>5ts  
are unable to borr[ "u ! ,f$]al ,direct 
,,plus ,loan ,program7--  7,i7 :o has n 
successfully complet$ ! fir/ ye> ( a    
program ( und]graduate education1       
#e1ejj2  7,,ii7 :o has successfully     
complet$ su* fir/ ye> b has n           
successfully complet$ ! rema9d] ( a     
program ( und]graduate education1       
#f1ejj2 &  7,,iii7 :o has successfully  
complet$ ! fir/ & second ye>s ( a       
program ( und]graduate education b has n
 successfully complet$ ! rema9d] ( su*  
program1 #g1ejj2 &  7ii7 9 ! case ( an  
indep5d5t /ud5t1 or an und]graduate     
dep5d5t /ud5t ^: p>5ts are unable to    
borr[ "u ! ,f$]al ,direct ,,plus ,loan  
,program--  7,i7 :o has n successfully  
complet$ ! fir/ ye> ( a program (       
und]graduate education1 #i1ejj2  7,,ii7 
:o has successfully complet$ su* fir/   
ye> b has n successfully complet$ !     
rema9d] ( a program ( und]graduate      

education1 #aj1ejj2 &  7,,iii7 :o has   
successfully complet$ ! fir/ & second   
ye>s ( a program ( und]graduate         
education b has n successfully complet$ 
! rema9d] ( su* program1 #ab1ejj4  2    
7#b7 9 subsection 7b7--  7,a7 9 p>agraph
 7#g7--  7i7 9 ! p>agraph head+1 by     
ins]t+ 1 & be=e ,july #a1 #bjac aft]    
#bjjf2  7ii7 9 subp>agraph 7,a71 by     
ins]t+ & be=e ,july #a1 #bjac1 aft]     
#bjjf12  7iii7 9 subp>agraph 7,b71 by   
ins]t+ & be=e ,july #a1 #bjac1 aft]     
#bjjf12 &  7iv7 9 subp>agraph 7,c71 by  
ins]t+ & be=e ,july #a1 #bjac1 aft]     
#bjjf12  7,b7 by r$esignat+ p>agraphs   
7#h7 & 7#i7 z p>agraphs 7#i7 & 7#aj71   
respectively2 &  7,c7 by ins]t+ aft]    
p>agraph 7#g7 ! foll[+3  7#h7 ,int]e/   
rates = new loans on or aft] ,july #a1  
#bjac  7,a7 ,rates = ,,fdsl & ,,fdusl   
,not)/&+ ! prec$+ p>agraphs ( ?is       
subsection1 =--  7i7 ,f$]al ,direct     
,/af=d ,loans = :i* ! fir/ disbursem5t  
is made on or aft] ,july #a1 #bjac1 !   
applicable rate ( int]e/ %all1 dur+ any 

#ab-mon? p]iod beg9n+ on ,july #a & end+
 on ,june #cj1 be det]m9$ on ! prec$+   
,june #a & be equal to--  7,i7 ! bond   
equival5t rate ( #ia-;day ,treasury     
bills auction$ at ! f9al auction held   
prior to su* ,june #a2 plus  7,,ii7 a   
p]c5tage det]m9$ "u subp>agraph 7,d71   
except t su* rate %all n exce$ #f4h     
p]c5t2 &  7ii7 ,f$]al ,direct           
,unsubsidiz$ ,/af=d ,loans = :i* ! fir/ 
disbursem5t is made on or aft] ,july #a1
 #bjac1 ! applicable rate ( int]e/ %all1
 dur+ any #ab-mon? p]iod beg9n+ on ,july
 #a & end+ on ,june #cj1 be det]m9$ on !
 prec$+ ,june #a & be equal to--  7,i7 !
 bond equival5t rate ( #ia-;day         
,treasury bills auction$ at ! f9al      
auction held prior to su* ,june #a2 plus
  7,,ii7 a p]c5tage det]m9$ "u          
subp>agraph 7,d71  except t su* rate    
%all n exce$ #h4be p]c5t4  7,b7 ,rates =
 ,,plus ,loans ,not)/&+ ! prec$+        
p>agraphs ( ?is subsection1 = ,f$]al    
,direct ,,plus ,loans = :i* ! fir/      
disbursem5t is made on or aft] ,july #a1

 #bjac1 ! applicable rate ( int]e/ %all1
 dur+ any #ab-mon? p]iod beg9n+ on ,july
 #a & end+ on ,june #cj1 be det]m9$ on !
 prec$+ ,june #a & be equal to--  7i7 ! 
bond equival5t rate ( #ia-;day ,treasury
 bills auction$ at ! f9al auction held  
prior to su* ,june #a2 plus  7ii7 a     
p]c5tage det]m9$ "u subp>agraph 7,d71   
except t su* rate %all n exce$ #h4be    
p]c5t4  7,c7 ,consolidation loans       
,not)/&+ ! prec$+ p>agraphs ( ?is       
subsection1 = ,f$]al ,direct            
,consolidation ,loans = :i* ! fir/      
disbursem5t is made on or aft] ,july #a1
 #bjac1 ! applicable rate ( int]e/ %all1
 dur+ any #ab-mon? p]iod beg9n+ on ,july
 #a & end+ on ,june #cj1 be det]m9$ on !
 prec$+ ,june #a & be equal to--  7i7 ! 
bond equival5t rate ( #ia-;day ,treasury
 bills auction$ at ! f9al auction held  
prior to su* ,june #a2 plus  7ii7 a     
p]c5tage det]m9$ "u subp>agraph 7,d71   
except t su* rate %all n exce$ #h4be    
p]c5t4  7,d7 ,p]c5tage det]m9ation      
,except z provid$ 9 ! flu% text "u      

clauses 7i7 & 7ii7 ( subp>agraph 7,a71  
subp>agraph 7,b71 & subp>agraph 7,c71   
dur+ ea* #ab-mon? p]iod beg9n+ on ,july 
#a & end+ on ,june #cj1 beg9n+ on ,july 
#a1 #bjac1 ! ,secret>y %all det]m9e a   
p]c5tage = application "u clauses       
7i77,,ii7 & 7ii77,,ii7 ( subp>agraph    
7,a71 subp>agraph 7,b77ii71 &           
subp>agraph 7,c77ii74 ,9 c>ry+ out ?is  
subp>agraph1 ! ,secret>y may det]m9e    
diff]5t p]c5tages = application "u ea*  
su* clause or subp>agraph1 z long z su* 
p]c5tages 9 ! aggregate--  7i7 repres5t 
! total co/ ( adm9i/]+ ! ,f$]al ,direct 
,loan program & borr[] b5efits2 &  7ii7 
result 9 su* program be+ rev5ue neutral 
= su* #ab-mon? p]iod4  2 &  7#c7 9      
subsection 7c71 by add+ at ! end !      
foll[+3  7#c7 ,r$uction ( fee = ,f$]al  
,direct ,,plus ,loans ,not)/&+ p>agraph 
7#a71 = any ,f$]al ,direct ,,plus ,loan 
= :i* ! fir/ disbursem5t is made on or  
aft] ,july #a1 #bjac1 ! ,secret>y %all  
*>ge ! borr[] ( ! ,loan an orig9ation   
fee ( n m ?an #c p]c5t ( ! pr9cipal     

am\nt ( ! loan4  4  7b7 ,ref9anc+ ,"p ,d
 ( title ,,iv ( ! ,high] ,education ,act
 ( #aife 7#bj ,u4,s4,c4 #ajhg;a et seq47
 is am5d$ by add+ at ! end ! foll[+3    
#dfj;,a4 ,ref9anc+  7a7 ,ref9anc+ =     
,,plus loans  7#a7 ,reissu+ ,f$]al      
,direct ,,plus loans ,! ,secret>y may   
reissue a ,f$]al ,direct ,,plus ,loan = 
:i* ! fir/ disbursem5t 0 made be=e ,july
 #a1 #bjac1 t is n 9 default 9 ord] to  
p]mit ! borr[] to obta9 ! int]e/ rate   
provid$ "u section #dee7;b77#h77;,b74   
7#b7 ,pur*as+ ,f$]al ,,plus ,loans ,!   
,secret>y may pur*ase a ,f$]al ,,plus   
,loan t is n 9 default & reissue su*    
loan 9 ord] to p]mit ! borr[] to obta9 !
 int]e/ rate provid$ "u section         
#dee7;b77#h77;,b74  7#c7 ,adm9i/rative  
fee ,! ,secret>y may *>ge a borr[] an   
am\nt n to exce$ #j4e p]c5t ( ! pr9cipal
 am\nt ( ! loan to be reissu$ or pur*as$
 to cov] ! adm9i/rative co/ ( reissu+ or
 pur*as+ su* loan1 :i* am\nt %all be    
paid to ! ,secret>y4  7b7 ,ref9anc+ =   
,/af=d loans  7#a7 ,reissu+ ,f$]al      

,direct ,/af=d loans ,! ,secret>y may   
reissue a ,f$]al ,direct ,/af=d ,loan or
 a ,f$]al ,direct ,unsubsidiz$ ,/af=d   
,loan = :i* ! fir/ disbursem5t 0 made   
be=e ,july #a1 #bjac1 t is n 9 default 9
 ord] to p]mit ! borr[] to obta9 !      
int]e/ rate provid$ "u section          
#dee7;b77#h77;,a74  7#b7 ,pur*as+ ,f$]al
 ,/af=d ,loans ,! ,secret>y may pur*ase 
a ,f$]al ,/af=d ,loan or a ,f$]al       
,unsubsidiz$ ,/af=d ,loan t is n 9      
default & reissue su* loan 9 ord] to    
p]mit ! borr[] to obta9 ! int]e/ rate   
provid$ "u section #dee7;b77#h77;,a74   
7#c7 ,adm9i/rative fee ,! ,secret>y may 
*>ge a borr[] an am\nt n to exce$ #j4e  
p]c5t ( ! pr9cipal am\nt ( ! loan to be 
reissu$ or pur*as$ to cov] !            
adm9i/rative co/ ( reissu+ or pur*as+   
su* loan1 :i* am\nt %all be paid to !   
,secret>y4  4