,i  #aacth ,,congress  #b;d ,session    
,h4 ,r4 #dbcf  ,,in ,,the ,,house ,,of  
,,representatives  ,march #ac1 #bjad    
,mrs4 ,davis of ,california introduced  
the following bill2 which was referred  
to the ,committee on ,education and the 
,workforce1 and in addition to the      
,committee on ,financial ,services1 for 
a period to be subsequently determined  
by the ,speaker1 in each case for       
consideration of such provisions as fall
 within the jurisdiction of the         
committee concerned  ,a ,,bill  ,to     
amend the ,higher ,education ,act of    
#aife and the ,truth in ,lending ,act to
 clarify the application of prepayment  
amounts on student loans4  #a4 ,short   
title ,this ,act may be cited as the    
,student ,loan ,fair ,prepayment ,act4  
#b4 ,application of prepayment amounts  
for ,,ffel and ,direct ,loans ,section  
#dee7;d7 of the ,higher ,education ,act 
of #aife 7#bj ,u4,s4,c4 #ajhg;e7d77 is  
amended by adding at the end the        
following new paragraph3  7#f7          

,application of prepayment amounts  7,a7
 ,requirement ,notwithstanding any other
 provision of this subsection or any    
other provision of law1 with respect to 
loans made to an eligible borrower under
 this part or part ,b1 which are held by
 the same holder and which have         
different applicable rates of interest1 
the holder of such loans shall1 except  
as otherwise requested by the borrower  
in writing1 apply the borrower's        
prepayment amount 7within the meaning of
 section #fhb4bji7;b7 of title #cd1     
,code of ,federal ,regulations1 or a    
successor regulation7 for one or more of
 such loans1 first toward the           
outstanding balance of principal due on 
the loan with the highest applicable    
rate of interest among such loans4  7,b7
 ,eligible borrower  7i7 ,in general    
,for purposes of this paragraph1 the    
term eligible borrower means a borrower 
with no outstanding balance of fees1    
including collection costs and          
authorized late charges1 due on any loan

 made under this part or part ,b4  7ii7 
,prepayment amounts ,a prepayment amount
 7as described in subparagraph 7,a77    
made by a borrower who is not an        
eligible borrower to a holder shall be  
applied first toward the borrower's     
outstanding balance of fees1 including  
collection costs and authorized late    
charges1 due on any loan made under this
 part or part ,b held by such holder4   
7,c7 ,exceptions ,this paragraph shall  
not apply to an income-based repayment  
plan under section #dic;,c or an income 
contingent repayment plan under section 
#dee7;d77#a77;,d71 such as a ,pay ,as   
,you ,earn repayment plan4  4  #c4      
,application of prepayment amounts for  
,perkins ,loans ,section                
#dfd7;c77#a77;,c7 of the ,higher        
,education ,act of #aife 7#bj ,u4,s4,c4 
#ajhg;dd7c77#a77;,c77 is amended--  7#a7
 by striking and at the end of clause   
7i72  7#b7 by adding at the end the     
following3  7iii7 shall provide that the
 institution shall1 in the case of a    

borrower with no outstanding balance of 
fees 7including collection costs and    
authorized late charges7 due on the     
loans held by the institution and who   
repays more than the amount due for a   
repayment period1 use the excess to     
prepay 7within the meaning of section   
#fgd4ca7;b77#d77;iv7 of title #cd1 ,code
 of ,federal ,regulations1 or a         
successor regulation7 the principal due 
on the loan with the highest applicable 
rate of interest among such loans1      
unless otherwise requested by the       
borrower in writing2 and  7iv7 shall    
provide that the institution shall1 in  
the case of a borrower with an          
outstanding balance of fees 7such as    
collection costs and authorized late    
charges7 due on the loans held by the   
institution and who repays more than the
 amount due for a repayment period1     
first apply such excess toward such     
outstanding balance of fees2  4  #d4    
,application of prepayment amounts for  
private education loans ,section        

#abh7;e7 of the ,truth in ,lending ,act 
7#ae ,u4,s4,c4 #afch7;e77 is amended by 
adding at the end the following3  7#ab7 
,application of prepayment amounts  7,a7
 ,in general ,notwithstanding any other 
provision of law1 with respect to a     
borrower with more than one private     
education loan which are held by the    
same holder and which have different    
applicable rates of interest1 the holder
 of such loans shall1 except as         
otherwise requested by the borrower in  
writing1 apply the borrower's prepayment
 amount 7within the meaning of section  
#fhb4bji7;b7 of title #cd1 ,code of     
,federal ,regulations1 or a successor   
regulation7 for one or more of such     
loans1 first toward the outstanding     
balance of principal due on the loan    
with the highest applicable rate of     
interest among such loans4  7,b7        
,exception  7i7 ,in general             
,subparagraph 7,a7 shall not apply to   
any prepayment amount made by a borrower
 to a holder if the borrower has an     

outstanding balance of fees1 including  
collection costs and authorized late    
charges1 due on any private education   
loan held by such holder4  7ii7         
,prepayment amounts ,a prepayment amount
 7as described in subparagraph 7,a77    
made by a borrower described in         
subparagraph 7,b7 to a holder shall be  
applied first toward the borrower's     
outstanding balance of fees1 including  
collection costs and authorized late    
charges1 due on any private education   
loan held by such holder4  4