,,ii #aacth ,,congress #ast ,session ,s4 #iji ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,may #h1 #bjac ,mr4 ,reed 7for himself and ,mr4 ,durbin7 introduced the following bill2 which was read twice and referred to the ,committee on ,health1 ,education1 ,labor1 and ,pensions ,a ,,bill ,to amend the ,federal ,direct ,loan ,program under the ,higher ,education ,act of #aife to provide for student loan affordability1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,responsible ,student ,loan ,solutions ,act 4 #b4 ,student ,loan ,affordability 7a7 ,terms and conditions of federal direct loans ,section #dee of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajhg;e7 is amended-- 7#a7 in subsection 7a71 by adding at the end the following3 7#d7 ,federal ,direct ,stafford ,loan limits for new loans on or after ,july #a1 #bjac 7,a7 ,aggregate loan limits ,notwithstanding any other provision of this ,act1 with respect to ,federal ,direct ,stafford ,loans for which the first disbursement is made on or after ,july #a1 #bjac1 the aggregate unpaid principal amount for all such loans made on or after such date 7and including ,federal ,direct ,stafford ,loans first disbursed before such date7 to any student shall not at any time exceed-- 7i7 #ca1jjj1 in the case of any dependent student 7except an undergraduate dependent student whose parents are unable to borrow under the ,federal ,direct ,,plus ,loan ,program7 who has not successfully completed a program of undergraduate education2 or 7ii7 #eg1ejj1 in the case of any independent student1 or an undergraduate dependent student whose parents are unable to borrow under the ,federal ,direct ,,plus ,loan ,program1 who has not successfully completed a program of undergraduate education4 7,b7 ,annual loan limits ,notwithstanding any other provision of this ,act1 with respect to ,federal ,direct ,stafford ,loans for which the first disbursement is made on or after ,july #a1 #bjac1 the maximum annual amount for all such loans made on or after such date a student who has not successfully completed a program of undergraduate education may borrow in any academic year shall not at any time exceed-- 7i7 in the case of a dependent student 7except an undergraduate dependent student whose parents are unable to borrow under the ,federal ,direct ,,plus ,loan ,program7-- 7,i7 who has not successfully completed the first year of a program of undergraduate education1 #e1ejj2 7,,ii7 who has successfully completed such first year but has not successfully completed the remainder of a program of undergraduate education1 #f1ejj2 and 7,,iii7 who has successfully completed the first and second years of a program of undergraduate education but has not successfully completed the remainder of such program1 #g1ejj2 and 7ii7 in the case of an independent student1 or an undergraduate dependent student whose parents are unable to borrow under the ,federal ,direct ,,plus ,loan ,program-- 7,i7 who has not successfully completed the first year of a program of undergraduate education1 #i1ejj2 7,,ii7 who has successfully completed such first year but has not successfully completed the remainder of a program of undergraduate education1 #aj1ejj2 and 7,,iii7 who has successfully completed the first and second years of a program of undergraduate education but has not successfully completed the remainder of such program1 #ab1ejj4 2 7#b7 in subsection 7b7-- 7,a7 in paragraph 7#g7-- 7i7 in the paragraph heading1 by inserting 1 and before ,july #a1 #bjac after #bjjf2 7ii7 in subparagraph 7,a71 by inserting and before ,july #a1 #bjac1 after #bjjf12 7iii7 in subparagraph 7,b71 by inserting and before ,july #a1 #bjac1 after #bjjf12 and 7iv7 in subparagraph 7,c71 by inserting and before ,july #a1 #bjac1 after #bjjf12 7,b7 by redesignating paragraphs 7#h7 and 7#i7 as paragraphs 7#i7 and 7#aj71 respectively2 and 7,c7 by inserting after paragraph 7#g7 the following3 7#h7 ,interest rates for new loans on or after ,july #a1 #bjac 7,a7 ,rates for ,,fdsl and ,,fdusl ,notwithstanding the preceding paragraphs of this subsection1 for-- 7i7 ,federal ,direct ,stafford ,loans for which the first disbursement is made on or after ,july #a1 #bjac1 the applicable rate of interest shall1 during any #ab-month period beginning on ,july #a and ending on ,june #cj1 be determined on the preceding ,june #a and be equal to-- 7,i7 the bond equivalent rate of #ia-;day ,treasury bills auctioned at the final auction held prior to such ,june #a2 plus 7,,ii7 a percentage determined under subparagraph 7,d71 except that such rate shall not exceed #f4h percent2 and 7ii7 ,federal ,direct ,unsubsidized ,stafford ,loans for which the first disbursement is made on or after ,july #a1 #bjac1 the applicable rate of interest shall1 during any #ab-month period beginning on ,july #a and ending on ,june #cj1 be determined on the preceding ,june #a and be equal to-- 7,i7 the bond equivalent rate of #ia-;day ,treasury bills auctioned at the final auction held prior to such ,june #a2 plus 7,,ii7 a percentage determined under subparagraph 7,d71 except that such rate shall not exceed #h4be percent4 7,b7 ,rates for ,,plus ,loans ,notwithstanding the preceding paragraphs of this subsection1 for ,federal ,direct ,,plus ,loans for which the first disbursement is made on or after ,july #a1 #bjac1 the applicable rate of interest shall1 during any #ab-month period beginning on ,july #a and ending on ,june #cj1 be determined on the preceding ,june #a and be equal to-- 7i7 the bond equivalent rate of #ia-;day ,treasury bills auctioned at the final auction held prior to such ,june #a2 plus 7ii7 a percentage determined under subparagraph 7,d71 except that such rate shall not exceed #h4be percent4 7,c7 ,consolidation loans ,notwithstanding the preceding paragraphs of this subsection1 for ,federal ,direct ,consolidation ,loans for which the first disbursement is made on or after ,july #a1 #bjac1 the applicable rate of interest shall1 during any #ab-month period beginning on ,july #a and ending on ,june #cj1 be determined on the preceding ,june #a and be equal to-- 7i7 the bond equivalent rate of #ia-;day ,treasury bills auctioned at the final auction held prior to such ,june #a2 plus 7ii7 a percentage determined under subparagraph 7,d71 except that such rate shall not exceed #h4be percent4 7,d7 ,percentage determination ,except as provided in the flush text under clauses 7i7 and 7ii7 of subparagraph 7,a71 subparagraph 7,b71 and subparagraph 7,c71 during each #ab-month period beginning on ,july #a and ending on ,june #cj1 beginning on ,july #a1 #bjac1 the ,secretary shall determine a percentage for application under clauses 7i77,,ii7 and 7ii77,,ii7 of subparagraph 7,a71 subparagraph 7,b77ii71 and subparagraph 7,c77ii74 ,in carrying out this subparagraph1 the ,secretary may determine different percentages for application under each such clause or subparagraph1 as long as such percentages in the aggregate-- 7i7 represent the total cost of administering the ,federal ,direct ,loan program and borrower benefits2 and 7ii7 result in such program being revenue neutral for such #ab-month period4 2 and 7#c7 in subsection 7c71 by adding at the end the following3 7#c7 ,reduction of fee for ,federal ,direct ,,plus ,loans ,notwithstanding paragraph 7#a71 for any ,federal ,direct ,,plus ,loan for which the first disbursement is made on or after ,july #a1 #bjac1 the ,secretary shall charge the borrower of the ,loan an origination fee of not more than #c percent of the principal amount of the loan4 4 7b7 ,refinancing ,part ,d of title ,,iv of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajhg;a et seq47 is amended by adding at the end the following3 #dfj;,a4 ,refinancing 7a7 ,refinancing for ,,plus loans 7#a7 ,reissuing ,federal ,direct ,,plus loans ,the ,secretary may reissue a ,federal ,direct ,,plus ,loan for which the first disbursement was made before ,july #a1 #bjac1 that is not in default in order to permit the borrower to obtain the interest rate provided under section #dee7;b77#h77;,b74 7#b7 ,purchasing ,federal ,,plus ,loans ,the ,secretary may purchase a ,federal ,,plus ,loan that is not in default and reissue such loan in order to permit the borrower to obtain the interest rate provided under section #dee7;b77#h77;,b74 7#c7 ,administrative fee ,the ,secretary may charge a borrower an amount not to exceed #j4e percent of the principal amount of the loan to be reissued or purchased to cover the administrative cost of reissuing or purchasing such loan1 which amount shall be paid to the ,secretary4 7b7 ,refinancing for ,stafford loans 7#a7 ,reissuing ,federal ,direct ,stafford loans ,the ,secretary may reissue a ,federal ,direct ,stafford ,loan or a ,federal ,direct ,unsubsidized ,stafford ,loan for which the first disbursement was made before ,july #a1 #bjac1 that is not in default in order to permit the borrower to obtain the interest rate provided under section #dee7;b77#h77;,a74 7#b7 ,purchasing ,federal ,stafford ,loans ,the ,secretary may purchase a ,federal ,stafford ,loan or a ,federal ,unsubsidized ,stafford ,loan that is not in default and reissue such loan in order to permit the borrower to obtain the interest rate provided under section #dee7;b77#h77;,a74 7#c7 ,administrative fee ,the ,secretary may charge a borrower an amount not to exceed #j4e percent of the principal amount of the loan to be reissued or purchased to cover the administrative cost of reissuing or purchasing such loan1 which amount shall be paid to the ,secretary4 4