,,ii  #aae? ,,congress  #a/ ,session    
,s4 #aeba  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,july #aj1 #bjag ,mr4  
,nelson introduc$ ! foll[+ bill2 :i* 0  
read twice & ref]r$ to ! ,committee on  
,heal?1 ,education1 ,labor1 & ,p5sions  
,a ,,bill  ,to am5d ! ,high] ,education 
,act ( #aife to r$uce ! int]e/ rate caps
 = ,f$]al ,direct /ud5t loans1 to       
elim9ate loan orig9ation fees on all    
,f$]al ,direct /ud5t loans1 & to provide
 = ref9anc+ ( ,f$]al ,direct /ud5t loans
 & ,f$]al family education loans4  #a4  
,%ort title  ,?is ,act may be cit$ z !  
,/ud5t ,loan ,relief ,act ( #bjag4  #b4 
,r$uction ( int]e/ rates = f$]al direct 
/ud5t loans ,section #dee7;b7 ( ! ,high]
 ,education ,act ( #aife 7#bj ,u4,s4,c4 
#ajhg;e7b77 is am5d$ by add+ at ! end ! 
foll[+3  7#aa7 ,int]e/ rate provisions =
 new loans on or aft] july #a1 #bjah    
7,a7 ,rates = und]graduate fdsl & fdusl 
,not)/&+ ! prec$+ p>agraphs ( ?is       
subsection1 = ,f$]al ,direct ,/af=d     
,loans & ,f$]al ,direct ,unsubsidiz$    

,/af=d ,loans issu$ to und]graduate     
/ud5ts1 = :i* ! fir/ disbursem5t is made
 on or aft] ,july #a1 #bjah1 !          
applicable rate ( int]e/ %all1 = loans  
disburs$ dur+ any #ab-mon? p]iod beg9n+ 
on ,july #a & end+ on ,june #cj1 be     
det]m9$ on ! prec$+ ,june #a & be equal 
to ! less] (--  7i7 a rate equal to !   
high yield ( ! #aj-ye> ,treasury note   
auction$ at ! f9al auction held prior to
 su* ,june #a plus ! ,f$]al ,res]ve     
disc\nt rate *>g$ = prim>y cr$it on !   
date ( su* auction1 z au?oriz$ "u       
section #ad7;d7 ( ! ,f$]al ,res]ve ,act 
7#ab ,u4,s4,c4 #ceg72 or  7ii7 #d p]c5t4
  7,b7 ,rates = graduate & pr(essional  
fdusl ,not)/&+ ! prec$+ p>agraphs ( ?is 
subsection1 = ,f$]al ,direct            
,unsubsidiz$ ,/af=d ,loans issu$ to     
graduate or pr(essional /ud5ts1 = :i* ! 
fir/ disbursem5t is made on or aft]     
,july #a1 #bjah1 ! applicable rate (    
int]e/ %all1 = loans disburs$ dur+ any  
#ab-mon? p]iod beg9n+ on ,july #a & end+
 on ,june #cj1 be det]m9$ on ! prec$+   

,june #a & be equal to ! less] (--  7i7 
a rate equal to ! high yield ( ! #aj-ye>
 ,treasury note auction$ at ! f9al      
auction held prior to su* ,june #a plus 
! ,f$]al ,res]ve disc\nt rate *>g$ =    
prim>y cr$it on ! date ( su* auction1 z 
au?oriz$ "u section #ad7;d7 ( ! ,f$]al  
,res]ve ,act 7#ab ,u4,s4,c4 #ceg72 or   
7ii7 #e p]c5t4  7,c7 ,plus loans        
,not)/&+ ! prec$+ p>agraphs ( ?is       
subsection1 = ,f$]al ,direct ,,plus     
,loans1 = :i* ! fir/ disbursem5t is made
 on or aft] ,july #a1 #bjah1 !          
applicable rate ( int]e/ %all1 = loans  
disburs$ dur+ any #ab-mon? p]iod beg9n+ 
on ,july #a & end+ on ,june #cj1 be     
det]m9$ on ! prec$+ ,june #a & be equal 
to ! less] (--  7i7 a rate equal to !   
high yield ( ! #aj-ye> ,treasury note   
auction$ at ! f9al auction held prior to
 su* ,june #a plus ! ,f$]al ,res]ve     
disc\nt rate *>g$ = prim>y cr$it on !   
date ( su* auction1 z au?oriz$ "u       
section #ad7;d7 ( ! ,f$]al ,res]ve ,act 
7#ab ,u4,s4,c4 #ceg72 or  7ii7 #f p]c5t4

  7,d7 ,consolidation loans ,not)/&+ !  
prec$+ p>agraphs ( ?is subsection1 any  
,f$]al ,direct ,consolidation ,loan =   
:i* ! application is receiv$ on or aft] 
,july #a1 #bjah1 %all be> int]e/ at an  
annual rate on ! unpaid pr9cipal balance
 ( ! loan t is equal to ! weight$ av]age
 ( ! int]e/ rates on ! loans            
consolidat$1 r\nd$ to ! ne>e/ high]     
"o-eigh? ( "o p]c5t4  7,e7 ,consultation
 ,! ,secret>y %all det]m9e ! applicable 
rate ( int]e/ "u ?is p>agraph aft]      
consultation ) ! ,secret>y ( ! ,treasury
 & ! ,*airman ( ! ,bo>d ( ,gov]nors ( ! 
,f$]al ,res]ve ,sy/em & %all publi% su* 
rate 9 ! ,f$]al ,regi/] z soon z        
practicable aft] ! date ( det]m9ation4  
7,f7 ,rate ,! applicable rate ( int]e/  
det]m9$ "u ?is p>agraph = a ,f$]al      
,direct ,/af=d ,loan1 a ,f$]al ,direct  
,unsubsidiz$ ,/af=d ,loan1 or a ,f$]al  
,direct ,,plus ,loan %all be fix$ = !   
p]iod ( ! loan4  4  #c4 ,elim9ation ( ! 
loan orig9ation fees on f$]al direct    
/ud5t loans ,section #dee7;c7 ( ! ,high]

 ,education ,act ( #aife 7#bj ,u4,s4,c4 
#ajhg;e7c77 is am5d$ by add+ at ! end ! 
foll[+3  7#c7 ,sunset ,! ,secret>y may n
 *>ge ! borr[] ( a loan "u ?is "p = :i* 
! fir/ disbursem5t is made on or aft]   
,july #a1 #bjah1 an orig9ation fee4  4  
#d4 ,ref9anc+ ,,ffel & f$]al direct     
loans ,"p ,d ( title ,,iv ( ! ,high]    
,education ,act ( #aife 7#bj ,u4,s4,c4  
#ajhg;a et seq47 is am5d$ by add+ at !  
end ! foll[+3  #dfj;,a4 ,ref9anc+ ,,ffel
 & f$]al direct loans  7a7 ,9 g5]al     
,beg9n+ n lat] ?an #ahj days aft] ! date
 ( enactm5t ( ! ,/ud5t ,loan ,relief    
,act ( #bjag1 ! ,secret>y %all e/abli% a
 program "u :i* ! ,secret>y1 ^u !       
receipt ( an application f a qualifi$   
borr[]1 makes a loan "u ?is "p1 9       
accordance ) ! provisions ( ?is section1
 9 ord] to p]mit ! borr[] to obta9 !    
int]e/ rate provid$ "u subsection 7c74  
7b7 ,ref9anc+ direct loans  7#a7 ,f$]al 
direct loans ,^u application ( a        
qualifi$ borr[]1 ! ,secret>y %all repay 
any ,f$]al ,direct ,/af=d ,loan1 ,f$]al 

,direct ,unsubsidiz$ ,/af=d ,loan1      
,f$]al ,direct ,,plus ,loan1 or ,f$]al  
,direct ,consolidation ,loan ( !        
qualifi$ borr[]1 = :i* ! fir/           
disbursem5t 0 made1 or ! application = !
 orig9al consolidation loan 0 receiv$1  
be=e ,july #a1 #bjah1 ) ! proce$s ( a   
new ,f$]al ,direct ,/af=d ,loan1 ,f$]al 
,direct ,unsubsidiz$ ,/af=d ,loan1      
,f$]al ,direct ,,plus ,loan1 or ,f$]al  
,direct ,consolidation ,loan1           
respectively1 issu$ to ! borr[] 9 an    
am\nt equal to ! sum ( ! unpaid         
pr9cipal1 accru$ unpaid int]e/1 & late  
*>ges ( ! orig9al loan4  7#b7 ,ref9anc+ 
,,ffel program loans z ref9anc$ ,f$]al  
,direct ,loans ,^u application ( a      
qualifi$ borr[] = any loan t 0 made1    
insur$1 or gu>ante$ "u "p ,b & = :i* !  
fir/ disbursem5t 0 made1 or !           
application = ! consolidation loan 0    
receiv$1 be=e ,july #a1 #bjaj1 !        
,secret>y %all make a loan "u ?is "p1 9 
an am\nt equal to ! sum ( ! unpaid      
pr9cipal1 accru$ unpaid int]e/1 & late  

*>ges ( ! orig9al loan to ! borr[] 9    
accordance ) ! foll[+3  7,a7 ,!         
,secret>y %all pay ! proce$s ( su* loan 
to ! eligible l5d] ( ! loan made1       
insur$1 or gu>ante$ "u "p ,b1 9 ord] to 
dis*>ge ! borr[] f any rema9+ obligation
 to ! l5d] ) respect to ! orig9al loan4 
7,b7 ,a loan made "u ?is p>agraph t     
cov]s-- 7i7 a loan orig9ally made1      
insur$1 or gu>ante$ "u section #dbh %all
 be a ,f$]al ,direct ,/af=d ,loan2  7ii7
 a loan orig9ally made1 insur$1 or      
gu>ante$ "u section #dbh;,b %all be a   
,f$]al ,direct ,,plus ,loan2  7iii7 a   
loan orig9ally made1 insur$1 or gu>ante$
 "u section #dbh;,h %all be a ,f$]al    
,direct ,unsubsidiz$ ,/af=d ,loan2 &    
7iv7 a loan orig9ally made1 insur$1 or  
gu>ante$ "u section #dbh;,c %all be a   
,f$]al ,direct ,consolidation ,loan4    
7,c7 ,! int]e/ rate = ea* loan made by !
 ,secret>y "u ?is p>agraph %all be !    
applicable rate provid$ "u subsection   
7c74  7c7 ,int]e/ rates  7#a7 ,9 g5]al  
,! int]e/ rate = ! new ,f$]al ,direct   

,/af=d ,loans1 ,f$]al ,direct           
,unsubsidiz$ ,/af=d ,loans1 ,f$]al      
,direct ,,plus ,loans1 & ,f$]al ,direct 
,consolidation ,loans1 %all be a rate   
equal to--  7,a7 9 any case :]e !       
orig9al loan 0 a loan "u section #dbh or
 #dbh;,h1 a ,f$]al ,direct ,/af=d loan1 
or a ,f$]al ,direct ,unsubsidiz$ ,/af=d 
,loan1 t 0 issu$ to an und]graduate     
/ud5t1 a rate equal to ! rate det]m9$ "u
 section #dee7;b77#aa77;,a72  7,b7 9 any
 case :]e ! orig9al loan 0 a loan "u    
section #dbh or #dbh;,h1 a ,f$]al       
,direct ,/af=d ,loan1 or a ,f$]al       
,direct ,unsubsidiz$ ,/af=d ,loan1 t 0  
issu$ to a graduate or pr(essional      
/ud5t1 a rate equal to ! rate det]m9$ "u
 section #dee7;b77#aa77;,b72  7,c7 9 any
 case :]e ! orig9al loan 0 a loan "u    
section #dbh;,b or a ,f$]al ,direct     
,,plus ,loan1 a rate equal to ! rate    
det]m9$ "u section #dee7;b77#aa77;,c72 &
  7,d7 9 any case :]e ! orig9al loan 0 a
 loan "u section #dbh;,c or a ,f$]al    
,direct ,consolidation ,loan1 a rate    

calculat$ 9 accordance ) p>agraph 7#b74 
7#b7 ,int]e/ rate = consolidation loans 
7,a7 ,me?od ( calculation ,9 ord] to    
det]m9e ! int]e/ rate = any new ,f$]al  
,direct ,consolidation ,loan "u p>agraph
 7#a77;,d71 ! ,secret>y %all--  7i7     
det]m9e ea* ( ! compon5t loans t 7      
orig9ally consolidat$ 9 ! loan "u       
section #dbh;,c or ! ,f$]al ,direct     
,consolidation ,loan1 & calculate !     
proportion ( ! unpaid pr9cipal balance (
 ! loan "u section #dbh;,c or ! ,f$]al  
,direct ,consolidation ,loan t ea*      
compon5t loan repres5ts2  7ii7 use !    
proportions det]m9$ 9 accordance )      
clause 7i7 & ! int]e/ rate applicable = 
ea* compon5t loan1 z det]m9$ "u         
subp>agraph 7,b71 to calculate ! weight$
 av]age ( ! int]e/ rates on ! loans     
consolidat$ into ! loan "u section      
#dbh;,c or ! ,f$]al ,direct             
,consolidation ,loan2 &  7iii7 apply !  
weight$ av]age calculat$ "u clause 7ii7 
z ! int]e/ rate = ! new ,f$]al ,direct  
,consolidation ,loan4  7,b7 ,int]e/     

rates = compon5t loans ,! int]e/ rates =
 ! compon5t loans ( a loan made "u      
section #dbh;,c or a ,f$]al ,direct     
,consolidation ,loan %all be ! foll[+3  
7i7 ,! int]e/ rate = any loan "u section
 #dbh or #dbh;,h1 ,f$]al ,direct ,/af=d 
,loan1 or ,f$]al ,direct ,unsubsidiz$   
,/af=d ,loan issu$ to an und]graduate   
/ud5t %all be a rate equal to ! rate =  
,f$]al ,direct ,/af=d ,loans & ,f$]al   
,direct ,unsubsidiz$ ,/af=d ,loans issu$
 to und]graduate /ud5ts t is applicable 
on ! date ( ! application = ! new ,f$]al
 ,direct ,consolidation ,loan4  7ii7 ,! 
int]e/ rate = any loan "u section #dbh  
or #dbh;,h1 ,f$]al ,direct ,/af=d ,loan1
 or ,f$]al ,direct ,unsubsidiz$ ,/af=d  
,loan issu$ to a graduate or pr(essional
 /ud5t %all be a rate equal to ! rate = 
,f$]al ,direct ,unsubsidiz$ ,/af=d      
,loans issu$ to graduate or pr(essional 
/ud5ts t is applicable on ! date ( !    
application = ! new ,f$]al ,direct      
,consolidation ,loan4  7iii7 ,! int]e/  
rate = any loan "u section #dbh;,b or   

,f$]al ,direct ,,plus ,loan %all be a   
rate equal to ! rate = ,f$]al ,direct   
,,plus ,loans t is applicable on ! date 
( ! application = ! new ,f$]al ,direct  
,consolidation ,loan4  7iv7 ,! int]e/   
rate = any compon5t loan t is a loan "u 
section #dbh;,c or a ,f$]al ,direct     
,consolidation ,loan %all be ! weight$  
av]age ( ! int]e/ rates t w\ld apply "u 
?is subp>agraph = ea* loan compris+ !   
compon5t consolidation loan4  7v7 ,!    
int]e/ rate = any eligible loan t is a  
compon5t ( a loan made "u section       
#dbh;,c or a ,f$]al ,direct             
,consolidation ,loan & is n describ$ 9  
clauses 7i7 ?r\gh 7iv7 %all be ! int]e/ 
rate on ! orig9al compon5t loan4  7d7   
,t]ms & conditions ( loans  7#a7 ,9     
g5]al ,a loan t is ref9anc$ "u ?is      
section %all h ! same t]ms & conditions 
z ! orig9al loan1 except z o!rwise      
provid$ 9 ?is section4  7#b7 ,no        
automatic ext5sion ( repaym5t p]iod     
,ref9anc+ a loan "u ?is section %all n  
require ! ext5sion ( ! duration ( !     

repaym5t p]iod ( ! loan1 & ! borr[] %all
 reta9 ! "r to use ! same repaym5t t]m t
 0 9 effect on ! orig9al loan4 ,no?+ 9  
?is p>agraph %all be con/ru$ to prev5t a
 borr[] f elect+ a diff]5t repaym5t plan
 at any "t 9 accordance ) section       
#dee7;d77#c74  7e7 ,def9ition ( qualifi$
 borr[]  7#a7 ,9 g5]al ,= purposes ( ?is
 section1 ! t]m qualifi$ borr[] means a 
borr[]-- 7,a7 ( a loan "u ?is "p or "p  
,b = :i* ! fir/ disbursem5t 0 made1 or !
 application = a consolidation loan 0   
receiv$1 be=e ,july #a1 #bjah2 &  7,b7  
:o meets ! eligibility requirem5ts      
e/abli%$ "u p>agraph 7#b74  7#b7 ,income
 requirem5ts ,n lat] ?an #ahj days aft] 
! date ( enactm5t ( ! ,/ud5t ,loan      
,relief ,act ( #bjag1 ! ,secret>y %all  
e/abli% eligibility requirem5ts bas$ on 
income or debt-to-income ratio t take   
into consid]ation provid+ access to     
ref9anc+ "u ?is section = borr[]s ) !   
greate/ f9ancial ne$4  7f7 ,notification
 to borr[]s ,! ,secret>y1 9 coord9ation 
) ! ,director ( ! ,bureau ( ,consum]    

,f9ancial ,protection1 %all und]take a  
campaign to al]t borr[]s ( loans t are  
eligible = ref9anc+ "u ?is section t !  
borr[]s are eligible to apply = su*     
ref9anc+4 ,! campaign %all include !    
foll[+ activities3  7#a7 ,develop+      
consum] in=mation mat]ials ab\t !       
availability ( ,f$]al /ud5t loan        
ref9anc+4  7#b7 ,requir+ s]vic]s ( loans
 "u ?is "p or "p ,b to provide su*      
consum] in=mation to borr[]s 9 a mann]  
det]m9$ appropriate by ! ,secret>y1 9   
consultation ) ! ,director ( ! ,bureau (
 ,consum] ,f9ancial ,protection4  4