,i #aae? ,,congress #a/ ,session ,h4 ,r4 #bgbe ,,9 ,,! ,,h\se ,,( ,,repres5tatives ,may #be1 #bjag,mr4 ,rokita 7= himself & ,mr4 ,ha/+s7 introduc$ ! foll[+ bill2 :i* 0 ref]r$ to ! ,committee on ,education & ! ,work=ce ,a ,,bill ,to am5d ! ,high] ,education ,act ( #aife to provide = ! ref9anc+ ( c]ta9 ,f$]al /ud5t loans4 #a4 ,%ort title ,?is ,act may be cit$ z ! ,/ud5t ,loan ,l[] ,int]e/ ,rate & ,l[] ,mon?ly ,paym5t ,ref9anc+ ,act ( #bjag4 #b4 ,ref9anc+ program 7a7 ,program au?ority ,"p ,c ( title ,i ( ! ,high] ,education ,act ( #aife is am5d$ by add+ at ! end ! foll[+3 #ach;,a4 ,ref9anc+ c]ta9 ,f$]al /ud5t loans 7a7 ,9 g5]al ,to enable ,/ate1 private & nonpr(it l5d]s to make loans at l[] m>ket-bas$ v>iable int]e/ rates to all eligible borr[]s = ! purpose ( ref9anc+ exi/+ /ud5t loan debt incurr$ pursuant to p>ts ,b1 ,d1 & ,e1 ( title ,,iv1 !re are h]eby made available1 9 accordance ) ! provisions ( ?is title & title ,,iv1 su* sums z may be necess>y to insure a portion ( ea* loan1 z set =? 9 ?is "p1 & to o!rwise make paym5ts consi/5t ) ! t]ms 9 ?is "p4 7b7 ,discrim9ation by cr$itors prohibit$ ,no ag5cy1 organization1 in/itution1 bank1 cr$it union1 corporation1 or o!r l5d] :o regul>ly ext5ds1 r5ews1 or cont9ues cr$it or provides insurance "u ?is "p %all exclude f receipt or d5y ! b5efits (1 or discrim9ate aga9/ any borr[] or applicant 9 obta9+1 su* cr$it or insurance on ! basis ( race1 national orig91 religion1 sex1 m>ital /atus1 age1 or h&icapp$ /atus4 7c7 ,designation 7#a7 ,9 g5]al ,! program e/abli%$ "u ?is "p %all be ref]r$ to z ! ,/ud5t ,loan ,l[] ,int]e/ ,rate & ,l[] ,mon?ly ,paym5t ,ref9anc+ ,program4 7#b7 ,ref9anc+ loans ,not)/&+ any o!r provision ( ?is "p1 loans made to borr[]s "u ?is "p t1 except z o!rwise specifi$ 9 ?is "p1 h ! same t]ms1 conditions1 & b5efits z loans made to borr[]s "u section #dbh;,c1 %all be kn[n z ,ref9anc+ ,loans4 #ach;,b4 ,ref9anc+ c]ta9 ,f$]al /ud5t loans 7a7 ,9 g5]al ,beg9n+ n lat] ?an #ahj days aft] ! date ( enactm5t ( ! ,/ud5t ,loan ,l[] ,int]e/ ,rate & ,l[] ,mon?ly ,paym5t ,ref9anc+ ,act1 ! ,secret>y %all e/abli% a process "u :i* eligible l5d]s may receive loan insurance f ! ,secret>y = ! purpose ( ext5d+1 ^u ! receipt ( an application f an eligible borr[]1 a loan to ref9ance "o or m eligible loans1 9 accordance ) ! provisions ( ?is section4 7b7 ,def9itions 7#a7 ,def9ition ( eligible borr[] ,= ! purpose ( ?is section1 ! t]m eligible borr[] means a borr[] :o-- 7,a7 has "o or m eligible loans2 7,b7 is n subject to a judgm5t secur$ ?r\gh litigation ) respect to a loan "u ?is title or to an ord] = wage g>ni%m5t "u section #dhh;,a2 & 7,c7 at ! "t ( application = a ,ref9anc+ ,loan-- 7i7 is 9 repaym5t /atus z det]m9$ "u section #dbh7;b77#g77;,a72 7ii7 is 9 a grace p]iod prec$+ repaym5t2 or 7iii7 is a default$ borr[] :o has made arrangem5ts to repay ! obligation on ! default$ loans satisfactory to ! hold]s ( ! default$ loans4 7#b7 ,t]m9ation ,an individual's /atus z an eligible borr[] "u ?is section t]m9ates ^u receipt ( a ,ref9anc+ ,loan "u ?is section1 except t-- 7,a7 an individual :o receives eligible loans aft] ! date ( receipt ( ! ,ref9anc+ loan may receive a subsequ5t ,ref9anc+ ,loan2 7,b7 eligible loans receiv$ prior to ! date ( a ,ref9anc+ ,loan may be add$ dur+ ! #ahj-;day p]iod foll[+ ! mak+ ( ! ,ref9anc+ ,loan2 7,c7 eligible loans receiv$ foll[+ ! mak+ ( ! ,ref9anc+ ,loan may be add$ dur+ ! #ahj-;day p]iod foll[+ ! mak+ ( ! ,ref9anc+ ,loan2 & 7,d7 eligible loans receiv$ prior to ! date ( ! fir/ ,ref9anc+ ,loan may be add$ to a subsequ5t ,ref9anc+ ,loan4 7#c7 ,eligible l5d]s ,entities eligible to make ,ref9anc+ ,loans1 & receive default insurance f ! ,secret>y1 %all be ei!r-- 7,a7 ,/ate ag5cies describ$ 9 subp>agraphs 7,d7 & 7,f7 ( section #dce7;d77#a72 7,b7 o!r eligible l5d]s describ$ 9 subp>agraphs 7,a7 & 7,j7 ( su* section1 :i* made or held loans prior to ,july #a1 #bjaj2 & 7,c7 any o!r entity t prior to ,july #a1 #bjaj1 made or held a loan z a b5efici>y ( an eligible l5d] tru/ee agreem5t "u "p ,b ( title ,,iv4 7#d7 ,eligible loans ,= ! purposes ( ?is section1 eligible loans %all include any loan made1 insur$ or gu>ante$ "u p>ts ,b1 ,d1 & ,e ( title ,,iv4 7c7 ,ref9anc+ eligible loans ,^u application ( an eligible borr[]1 an eligible l5d] %all repay directly to ! exi/+ hold] ( ea* ( t eligible borr[]'s eligible loans ) ! proce$s ( a ,ref9anc+ ,loan 9 an am\nt equal to ! sum ( ! unpaid pr9cipal1 accru$ unpaid int]e/1 & late *>ges ( ! orig9al eligible loans 9 ord] to dis*>ge ! eligible borr[] f any rema9+ obligation to ! exi/+ hold] ) respect to ! orig9al eligible loans4 7d7 ,int]e/ rates 7#a7 ,9 g5]al ,not)/&+ ! curr5t int]e/ rates ( ! eligible loans be+ ref9anc$1 ! int]e/ rate = ! ,ref9anc+ ,loan1 %all be a v>iable rate equal to no m ?an-- 7,a7 = ! cal5d> qu>t] beg9n+ on ,july #a1 #bjae1 & ea* subsequ5t cal5d> qu>t]1 ! daily av]age ( #a-mon? ,london ,int] ,bank ,(f]$ ,rate 7,,libor7 = ,unit$ ,/ates doll>s 9 effect = ea* ( ! days 9 ! prior cal5d> qu>t] z compil$ & releas$ by ! ,briti% ,bank]s ,association1 plus 7,b7 #c4e p]c5t p] annum4 7#b7 ,adju/able rate ,! applicable rate ( int]e/ det]m9$ "u p>agraph 7#a7 = a ,ref9anc+ ,loan "u ?is section %all adju/ on ! fir/ day ( ea* cal5d> qu>t] = ! p]iod ( ! loan4 7e7 ,insurance 7#a7 ,default insurance ,! ,secret>y %all provide default insurance on ,ref9anc+ ,loans & %all ^u pres5tm5t ) a default$ ,ref9anc+ ,loan %all pay an am\nt1 z set = bel[1 to ! eligible l5d] 9 ex*ange = all rights1 title & int]e/ to ! ,ref9anc+ ,loan4 7#b7 ,default 7,a7 a ,ref9anc+ ,loan is 9 default & eligible = an insurance paym5t1 if ! ,ref9anc+ ,loan has1 exp]i5c$ at lea/ #bgj consecutive days ( nonpaym5t2 & 7,b7 su* /ate ( nonpaym5t is n caus$ by application ( a def]m5t or =be>ance z describ$ 9 section #dce4 7#c7 ,phase-out ( default insurance cov]age ,to ! ext5t an eligible l5d] provides ! ,secret>y ) a default$ eligible loan1 ! ,secret>y %all pay to ! eligible l5d] an am\nt equal to-- 7,a7 = a default occurr+ 9 ! fir/ #e ye>s f ! date ( disbursem5t ( ! ,ref9anc+ ,loan made1 ! ,secret>y %all insure #ig p]c5t ( ! unpaid pr9cipal & accru$ int]e/ & fees2 7,b7 = a default occurr+ 9 ! second #e ye>s 7ye>s #f ?r\gh #aj7 f ! date ( disbursem5t ( ! ,ref9anc+ ,loan1 ! ,secret>y %all insure #hg p]c5t ( ! unpaid pr9cipal & accru$ int]e/ & fees2 & 7,c7 = a default occurr+ at any po9t aft] ! t5? ye> aft] disbursem5t ( ! ,ref9anc+ ,loan1 ! ,secret>y %all insure #gg p]c5t ( ! unpaid pr9cipal & accru$ int]e/4 7f7 ,insurance fees paid to ! secret>y ,9 lieu ( any o!r fees or *>ges by ! ,secret>y associat$ ) loans "u ?is "p1 eligible l5d]s %all pay to ! ,secret>y-- 7#a7 a ,default ,insurance ,fee equal to #j4ej p]c5t ( ! disburs$ loan am\nt2 & 7#b7 a ,mon?ly ,insurance ,fee payable ea* mon? calculat$ on annual basis equal to #a4je p]c5t ( ! av]age pr9cipal plus accru$ unpaid int]e/ = ! prior mon? ( ! ,ref9anc+ ,loans disburs$ "u ?is section4 7g7 ,no special all[ance ,no special all[ance "u section #dch %all be paid ) respect to ! portion ( any ,ref9anc+ ,loan4 7h7 ,t]ms & conditions ( ref9anc+ loans 7#a7 ,9 g5]al ,a ,ref9anc+ ,loan made "u ?is section %all h ! same t]ms & conditions z ! loans au?oriz$ "u section #dee1 except z o!rwise provid$ 9 ?is section4 7#b7 ,no automatic ext5sion ( repaym5t p]iod ,ref9anc+ a loan "u ?is section may1 at ! behe/ ( ! eligible borr[]1 result 9 ! ext5sion ( ! duration ( ! repaym5t p]iod ( ! loan4 ,9 addition1 a borr[] may1 at ! "t ( mak+ ! ,ref9anc+ ,loan1 enroll 9 any repaym5t plan = :i* ! eligible borr[] is eligible 9 accordance ) section #dee7;d77#c74 7#c7 ,borr[] b5efits ,eligible l5d]s may (f] any borr[] b5efits1 includ+ int]e/ rate & pr9cipal r$uctions z desirable 9 connection ) ,ref9anc+ ,loans4 ,9 addition to su* b5efits1 & any o!r b5efits requir$ ( ,consolidation loans au?oriz$ "u section #dee-- 7,a7 ,ref9anc+ ,loans may1 to ! ext5t (f]$ "u ! ,direct ,loan ,program1 also (f]-- 7i7 an income cont+5t repaym5t plan2 7ii7 an income-bas$ repaym5t plan2 7iii7 a ,pay ,z ,y ,e>n 7,,paye7 ,repaym5t ,plan2 & 7iv7 ! public s]vice loan =giv5ess program "u section #dee7m72 & 7,b7 ,ref9anc+ ,loans %all1 to ! ext5t (f]$ "u ! ,direct ,loan ,program1 also (f]-- 7i7 ! b5efit = active duty s]vice memb]s b5efit (f]$ "u section #dee7o72 7ii7 def]m5t z provid$ = 9 section #dce2 7iii7 =be>ance z provid$ = 9 section #dce2 & 7iv7 dis*>ge = disability or dea? ( ! borr[]4 7i7 ,loan dis*>ge ,9 ! case ( loans dis*>g$ "u income cont+5t repaym5t1 income-bas$ repaym5t1 or public s]vice loan =giv5ess1 or = disability or dea? ( ! borr[]1 ! ,secret>y %all1 ^u su* dis*>ge1 pay to ! eligible l5d] an am\nt equal to ! unpaid pr9cipal & accru$ int]e/4 4 7b7 ,con=m+ am5dm5ts 7#a7 ,"p ,b ,section #dbh;,c7a77#c77;,b77i7 ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajgh-c7;a77#c77;,b77i77 is am5d$-- 7,a7 9 ! matt] prec$+ subclause 7,i7-- 7i7 by ins]t+ 1 section #ach;,a1 aft] ,an individual's /atus z an eligible borr[] "u ?is section2 7ii7 by /rik+ bo? sections & ins]t+ ea* su* section2 & 7iii7 by ins]t+ 1 a ,ref9anc+ ,loan "u section #ach;,a1 aft] ^u receipt ( a consolidation loan "u ?is section2 7,b7 9 subclause 7,,iii71 by /rik+ ! semicolon & ins]t+ 2 &2 7,c7 9 subclause 7,,iv71 by /rik+ 2 & & ins]t+ a p]iod2 & 7,d7 by /rik+ subclause 7,v74 7#b7 ,"p ,d ,section #dee ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajhg;e7 is am5d$-- 7,a7 9 subsection 7a71 by add+ at ! end ! foll[+3 7#d7 7,a7 ,consolidation ( ,ref9anc+ ,loans ,not)/&+ any provisions ( ?is "p1 eligible borr[]s may consolidate ,ref9anc+ ,loans au?oriz$ "u section #ach;,a into a ,direct ,consolidation ,loan 9 ! ev5t t ! int]e/ rate on ea* su* ,ref9anc+ ,loan exce$s #f4hge p]c5t = ! qu>t]4 7,b7 ,eligibility p]iod ,any application = a ,consolidation ,loan t includes ,ref9anc+ ,loans "u ?is p>agraph mu/ be receiv$ by ! ,secret>y by ! end ( a qu>t] dur+ :i* ! ,ref9anc+ ,loan int]e/ exce$s #f4hge p]c5t4 2 & 7,b7 by add+ at ! end ! foll[+ new subsection3 7r7 ,repaym5t t]ms = f$]al family education loans 7#a7 ,applicability ( programs available "u ?is section ,! ,secret>y %all apply subsections 7d71 7e71 7f71 7l71 7m71 & 7o7 to all loans made "u "p ,b z if su* loans 7 made "u ?is "p4 7#b7 ,paym5t ( balance & int]e/ ,9 c>ry+ out p>agraph 7#a71 ! ,secret>y %all pay to ! hold] ( a loan made "u "p ,b ! am\nt ( pr9cipal1 int]e/1 or special all[ance paym5ts necess>y to apply subsections 7d71 7e71 7f71 7l71 7m71 & 7o7 to su* loan1 z appropriate4 4 #c4 ,(fset 7a7 ,public s]vice loan =giv5ess ,section #dee7m7 ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajhg;e7m77 is am5d$-- 7#a7 9 p>agraph 7#a71 by /rik+ ,! ,secret>y & ins]t+ ,except z provid$ 9 p>agraph 7#b77;,b71 ! ,secret>y2 & 7#b7 9 p>agraph 7#b7-- 7,a7 by /rik+ ,aft] ! & ins]t+ ! foll[+3 7,a7 ,9 g5]al ,except z provid$ 9 subp>agraph 7,b71 aft] ! 2 & 7,b7 by add+ aft] subp>agraph 7,a7 ! foll[+3 7,b7 ,cap on loan cancellation ,) respect to any eligible ,f$]al ,direct ,loans made to a new borr[] on or aft] ,july #a1 #bjag1 ! ,secret>y may cancel1 9 accordance ) subp>agraph 7,a71 up to #eg1ejj ( ! obligation on su* loans4 4 7b7 ,income-,bas$ repaym5t ,section #dic;,c ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajih;e7 is am5d$ by add+ at ! end ! foll[+3 7f7 ,special t]ms = new borr[]s ,on & aft] ,july #a1 #bjag ,subsection 7e77#b7 %all n apply ) respect to any loan made to a new borr[] on or aft] ,july #a1 #bjag1 = enrollm5t 9 a graduate or pr(essional program4 4