,i #aafth ,,congress #ast ,session ,h4 ,r4 #ahii ,,in ,,the ,,house ,,of ,,representatives ,march #bg1 #bjai ,mr4 ,garamendi 7for himself1 ,mr4 ,fitzpatrick1 ,mr4 ,carbajal1 ,mr4 ,mc,nerney1 ,mr4 ,tonko1 ,mr4 ,doggett1 ,ms4 ,kuster of ,new ,hampshire1 ,mr4 ,costa1 ,mr4 ,krishnamoorthi1 ,ms4 ,norton1 ,mr4 ,cohen1 ,ms4 ,pingree1 ,mr4 ,gonzalez of ,texas1 ,miss ,rice of ,new ,york1 ,mr4 ,harder of ,california1 ,ms4 ,haaland1 ,ms4 ,hill of ,california1 ,mr4 ,san ,nicolas1 ,mr4 ,brendan ,f4 ,boyle of ,pennsylvania1 ,ms4 ,judy ,chu of ,california1 ,mr4 ,katko1 ,ms4 ,jackson ,lee1 ,mr4 ,rose of ,new ,york1 ,mr4 ,lowenthal1 and ,mr4 ,soto7 introduced the following bill2 which was referred to the ,committee on ,education and ,labor ,a ,,bill ,to provide for the refinancing and recalculation of certain ,federal student loans1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,student ,loan ,refinancing and ,recalculation ,act4 #b4 ,refinancing programs 7a7 ,program authority ,section #dea7;a7 of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajhg;a7a77 is amended-- 7#a7 by striking and 7#b7 and inserting 7#b72 and 7#b7 by inserting 2 and 7#c7 to make loans under section #dfj;,a after section #dei;,a4 7b7 ,refinancing program ,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 ,,ffel and ,federal ,direct ,loans 7a7 ,in general ,beginning not later than #ahj days after the date of enactment of the ,student ,loan ,refinancing and ,recalculation ,act1 the ,secretary shall establish a program under which the ,secretary1 upon the receipt of an application from a qualified borrower1 reissues the borrower's original loan under this part or part ,b as a loan under this part1 in accordance with the provisions of this section1 in order to permit the borrower to obtain the interest rate provided under subsection 7c74 7b7 ,reissuing loans 7#a7 ,federal ,direct ,loans ,upon application of a qualified borrower1 the ,secretary shall reissue a ,federal ,direct ,stafford ,loan1 a ,federal ,direct ,unsubsidized ,stafford ,loan1 a ,federal ,direct ,,plus ,loan1 or a ,federal ,direct ,consolidation ,loan of the qualified borrower1 for which the first disbursement was made1 or the application for the reissuance of a loan under this section was received before ,july #a1 #bjai1 in an amount equal to the sum of-- 7,a7 the unpaid principal1 accrued unpaid interest1 and late charges of the original loan2 and 7,b7 the administrative fee under subsection 7d77#c74 7#b7 ,discharging and reissuing ,,ffel ,program loans as refinanced ,federal ,direct ,loans ,upon application of a qualified borrower for any loan that was made1 insured1 or guaranteed under part ,b and for which the first disbursement was made before ,july #a1 #bjaj1 the ,secretary shall reissue such loan as a loan under this part1 in an amount equal to the sum of the unpaid principal1 accrued unpaid interest1 and late charges of the original loan and the administrative fee under subsection 7d77#c71 to the borrower in accordance with the following3 7,a7 ,the ,secretary shall pay the proceeds of such reissued loan to the eligible lender of the loan made1 insured1 or guaranteed under part ,b1 in order to discharge the borrower from any remaining obligation to the lender with respect to the original loan4 7,b7 ,the ,secretary shall reissue-- 7i7 a loan originally made1 insured1 or guaranteed under section #dbh as a ,federal ,direct ,stafford ,loan2 7ii7 a loan originally made1 insured1 or guaranteed under section #dbh;,b as a ,federal ,direct ,,plus ,loan2 7iii7 a loan originally made1 insured1 or guaranteed under section #dbh;,h as a ,federal ,direct ,unsubsidized ,stafford ,loan2 and 7iv7 a loan originally made1 insured1 or guaranteed under section #dbh;,c as a ,federal ,direct ,consolidation ,loan4 7,c7 ,the interest rate for each loan reissued under this paragraph shall be the rate provided under subsection 7c74 7c7 ,interest rate 7#a7 ,in general ,the interest rate for the reissued ,federal ,direct ,stafford ,loans1 ,federal ,direct ,unsubsidized ,stafford ,loans1 ,federal ,direct ,,plus ,loans1 and ,federal ,direct ,consolidation ,loans1 shall be a rate equal to-- 7,a7 the high yield of the #aj-year ,treasury note auctioned at the final auction held prior to the first day of the month in which the application for reissuance under this section is received1 plus 7,b7 #a4j percent4 7#b7 ,fixed ,rate ,the applicable rate of interest determined under paragraph 7#a7 for a reissued loan under this section shall be fixed for the period of the loan4 7d7 ,terms and conditions of loans 7#a7 ,in general ,a loan that is reissued under this section shall have the same terms and conditions as the original loan1 except as otherwise provided in this section4 7#b7 ,no automatic extension of repayment period ,reissuing a loan under this section shall not result in the extension of the duration of the repayment period of the loan1 and the borrower shall retain the same repayment term that was in effect on the original loan4 ,nothing in this paragraph shall be construed to prevent a borrower from electing a different repayment plan at any time in accordance with section #dee7;d77#c74 7#c7 ,administrative fee ,the ,secretary shall charge the borrower of a loan reissued under this section an administrative fee of not more than #j4e percent of the sum of the unpaid principal1 accrued unpaid interest1 and late charges1 of the original loan4 7e7 ,definition of qualified borrower 7#a7 ,in ,general ,the term qualified borrower means a borrower-- 7,a7 of a loan under this part or part ,b for which the first disbursement was made1 or the application for reissuance under this section was received1 before ,july #a1 #bjai2 and 7,b7 who meets the eligibility requirements based on income or debt-to-income ratio established by the ,secretary4 7#b7 ,income requirements ,not later than #ahj days after the date of enactment of the ,student ,loan ,refinancing and ,recalculation ,act1 the ,secretary shall establish eligibility requirements based on income or debt-to-income ratio that take into consideration providing access to refinancing under this section for borrowers with the greatest financial need4 7f7 ,expiration of authority ,the ,secretary's authority to reissue loans under this section shall expire on the date that is determined in accordance with section #d of the ,fairness in ,student ,loan ,lending ,act4 4 7c7 ,amendments to public service repayment plan provisions ,section #dee7m7 of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajhg;e7m77 is amended-- 7#a7 by redesignating paragraphs 7#c7 and 7#d7 as paragraphs 7#d7 and 7#e71 respectively2 7#b7 by inserting after paragraph 7#b7 the following3 7#c7 ,special rules for section #dfj;,a loans 7,a7 ,refinanced ,federal ,direct loans ,notwithstanding paragraph 7#a71 in determining the number of monthly payments that meet the requirements of such paragraph for an eligible ,federal ,direct ,loan reissued under section #dfj;,a that was originally a loan under this part1 the ,secretary shall include all monthly payments made on the original loan that meet the requirements of such paragraph4 7,b7 ,refinanced ,,ffel loans ,in the case of an eligible ,federal ,direct ,loan reissued under section #dfj;,a that was originally a loan under part ,b1 only monthly payments made after the date on which the loan was reissued may be included for purposes of paragraph 7#a74 2 and 7#c7 in paragraph 7#d77;,a7 7as redesignated by paragraph 7#a7 of this subsection71 by inserting 7including any ,federal ,direct ,stafford ,loan1 ,federal ,direct ,,plus ,loan1 ,federal ,direct ,unsubsidized ,stafford ,loan1 or ,federal ,direct ,consolidation ,loan reissued under section #dfj;,a7 before the period at the end4 7d7 ,income-,based repayment ,section #dic;,c of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajih;e7 is amended by adding at the end the following3 7a7 ,refinanced ,federal ,direct and ,,ffel loans ,in calculating the period of time during which a borrower of a loan that is reissued under section #dfj;,a has made monthly payments for purposes of subsection 7b77#g71 the ,secretary shall deem the period to include all monthly payments made for the original loan1 and all monthly payments made for the reissued loan1 that otherwise meet the requirements of this section4 4 #c4 ,interest ,rates 7a7 ,interest rates ,section #dee7;b7 of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajhg;e7b77 is amended-- 7#a7 by redesignating paragraph 7#i7 as paragraph 7#aj72 and 7#b7 by inserting after paragraph 7#h7 the following3 7#i7 ,interest rate provisions for new loans on or after ,july #a1 #bjai 7,a7 ,rates for undergraduate ,,fdsl and ,,fdusl ,notwithstanding the preceding paragraphs of this subsection1 for ,federal ,direct ,stafford ,loans and ,federal ,direct ,unsubsidized ,stafford ,loans issued to undergraduate students1 for which the first disbursement is made on or after ,july #a1 #bjai1 the applicable rate of interest shall1 for loans disbursed 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 the lesser of-- 7i7 a rate equal to-- 7,i7 the high yield of the #aj-year ,treasury note auctioned at the final auction held prior to such ,june #a1 plus 7,,ii7 #a percent2 or 7ii7 #h4be percent4 7,b7 ,rates for graduate and professional ,,fdusl ,notwithstanding the preceding paragraphs of this subsection1 for ,federal ,direct ,unsubsidized ,stafford ,loans issued to graduate or professional students1 for which the first disbursement is made on or after ,july #a1 #bjai1 the applicable rate of interest shall1 for loans disbursed 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 the lesser of-- 7i7 a rate equal to-- 7,i7 the high yield of the #aj-year ,treasury note auctioned at the final auction held prior to such ,june #a1 plus 7,,ii7 #a percent2 or 7ii7 #i4e percent4 7,c7 ,,plus ,loans ,notwithstanding the preceding paragraphs of this subsection1 for ,federal ,direct ,,plus ,loans1 for which the first disbursement is made on or after ,july #a1 #bjai1 the applicable rate of interest shall1 for loans disbursed 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 the lesser of-- 7i7 a rate equal to-- 7,i7 the high yield of the #aj-year ,treasury note auctioned at the final auction held prior to such ,june #a1 plus 7,,ii7 #a percent2 or 7ii7 #aj4e percent4 7,d7 ,consolidation loans ,notwithstanding the preceding paragraphs of this subsection1 any ,federal ,direct ,consolidation ,loan for which the application is received on or after ,july #a1 #bjai1 shall bear interest at an annual rate on the unpaid principal balance of the loan that is equal to the weighted average of the interest rates on the loans consolidated1 rounded to the nearest higher one-eighth of one percent4 7,e7 ,consultation ,the ,secretary shall determine the applicable rate of interest under this paragraph after consultation with the ,secretary of the ,treasury and shall publish such rate in the ,federal ,register as soon as practicable after the date of determination4 7,f7 ,rate ,the applicable rate of interest determined under this paragraph for a ,federal ,direct ,stafford ,loan1 a ,federal ,direct ,unsubsidized ,stafford ,loan1 or a ,federal ,direct ,,plus ,loan shall be fixed for the period of the loan4 4 7b7 ,in school deferment ,section #dee7;f7 of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajhg;e7f77 is amended-- 7#a7 in paragraph 7#a71 in the matter preceding subparagraph 7,a71 by striking ,a borrower and inserting ,except as provided in paragraph 7#e71 a borrower2 7#b7 in paragraph 7#b77;,a7-- 7,a7 by striking the matter following clause 7ii72 7,b7 in clause 7ii71 by striking the comma at the end and inserting 2 or2 and 7,c7 by adding at the end the following3 7iii7 is serving in a medical or dental internship or residency program2 2 and 7#c7 by adding at the end the following new paragraph3 7#e7 ,special rule for in school deferment ,notwithstanding any other provision of this ,act1 a borrower described in paragraph 7#b77;,a7 shall be eligible for a deferment1 during which periodic installments of principal need not be paid1 and interest-- 7,a7 shall not accrue1 in the case of a borrower with an expected family contribution of not more than #aj1jjj 7computed in accordance with part ,f of this title72 and 7,b7 shall accrue at the rate equal to the high yield of the #aj-year ,treasury note applicable to such loan under subsection 7b77#i71 in the case of a borrower of an unsubsidized loan with an expected family contribution of more than #aj1jjj 7computed in accordance with part ,f of this title74 4 7c7 ,effective date ,the amendments made by subsections 7a7 and 7b7 shall take effect on ,july #a1 #bjai4 #d4 ,elimination of origination fees for ,federal ,direct ,loans 7a7 ,sense of ,congress ,it is the sense of ,congress that no origination fees should be charged on any future ,federal ,direct ,loans4 7b7 ,repeal of origination fees ,subsection 7c7 of section #dee of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajhg;e7c77 is repealed4 7c7 ,effective date ,the amendment made by subsection 7b7 shall apply with respect to loans made under part ,d of title ,,iv of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajhg;a et seq47 for which the first disbursement of principal is made1 or1 in the case of a ,federal ,direct ,consolidation ,loan1 the application is received1 on the first ,july #a after the date of enactment of this ,act4