,i  #aaf? ,,congress  #a/ ,session  ,h4 
,r4 #cghf  ,,9 ,,! ,,h\se ,,(           
,,repres5tatives  ,july #af1 #bjai,mr4  
,p]ry introduc$ ! foll[+ bill2 :i* 0    
ref]r$ to ! ,committee on ,education &  
,labor  ,a ,,bill  ,to am5d ! ,high]    
,education ,act ( #aife to direct !     
,secret>y ( ,education to c>ry out a    
program "u :i* an in/itution ( high]    
education may elect to cosign ,f$]al    
/ud5t loans made to /ud5ts att5d+ !     
in/itution1 & = o!r purposes4  #a4 ,%ort
 title ,?is ,act may be cit$ z ! ,/ud5t 
,loan ,re=m ,act4  #b4 ,in/itutional    
cosign] program ,"p ,d ( title ,,iv ( ! 
,high] ,education ,act ( #aife 7#bj     
,u4,s4,c4 #ajhg;a et seq47 is am5d$ by  
ins]t+ aft] section #ded ! foll[+3      
#ded;,a4 ,in/itutional cosign] program  
7a7 ,program requir$ ,beg9n+ on ,july   
#a1 #bjbj1 ! ,secret>y %all c>ry out a  
program "u :i* an in/itution ( high]    
education may elect to cosign all       
eligible direct loans made to /ud5ts    
enroll$ at ! in/itution = an academic   

ye>4  7b7 ,agreem5t ) ,secret>y ,to be  
eligible to p>ticipate 9 ! program "u   
?is section = an academic ye>1 an       
in/itution ( high] education %all ent]  
into an agreem5t ) ! ,secret>y "u :i* ! 
in/itution agrees to ! foll[+3  7#a7 ,! 
in/itution w cosign all new eligible    
direct loans made to /ud5ts enroll$ at !
 in/itution = su* academic ye>4  7#b7 ,)
 respect to ea* su* loan1 ! in/itution w
 abide by ! t]ms & conditions ( cosign] 
liability describ$ 9 subsection 7d74    
7c7 ,ma/] promissory note ,z "p ( !     
program "u ?is section1 ! ,secret>y     
%all-- 7#a7 revise ! ma/] promissory    
note applicable to ea* eligible direct  
loan to include--  7,a7 ! t]ms &        
conditions ( cosign] & borr[] liability 
describ$ 9 subsection 7d72  7,b7 !      
int]e/ rate = ! loan1 z det]m9$ "u      
subsection 7e72 &  7,c7 a field 9 :i* an
 au?oriz$ repres5tative ( an in/itution 
p>ticipat+ 9 ! program may cosign ! note
 on behalf ( ! in/itution2 &  7#b7      
ensure t ea* in/itution p>ticipat+ 9 !  

program signs ! note applicable to ea*  
new eligible direct loan made to a /ud5t
 at ! in/itution = ! academic ye>       
conc]n$4  7d7 ,cosign] & borr[]         
liability  7#a7 ,9 g5]al ,not)/&+ any   
o!r provision ( law1 an in/itution (    
high] education t is a cosign] ( an     
eligible direct loan ( a borr[] %all    
assume ! obligation to repay1 9         
accordance ) p>agraph 7#b71 ! out/&+    
balance ( pr9cipal & int]e/ due on !    
loan if--  7,a7 ! borr[] default$ on !  
loan2  7,b7 a p]iod ( #ij days has      
elaps$ s9ce ! date on :i* ! loan ent]$  
default2 &  7,c7 ! loan has n be5       
rehabilitat$4  7#b7 ,am\nt & s*$ule (   
repaym5t ,an in/itution t is obligat$ to
 repay an eligible direct loan "u       
p>agraph 7#a7 %all make paym5ts on !    
loan pursuant to a /&>d repaym5t plan "u
 section #dee7;d77#a77;,a7 ) a repaym5t 
p]iod ( #aj ye>s4  7#c7 ,t]m9ation (    
obligation ,! obligation ( an in/itution
 to repay an eligible direct loan "u    
p>agraph 7#a7 %all t]m9ate on ! e>li]   

(--  7,a7 ! date on :i* ! loan is       
rehabilitat$2 or  7,b7 ! date on :i* !  
total out/&+ balance ( pr9cipal & int]e/
 due on ! loan has be5 repaid4  7#d7    
,effect on default /atus ( borr[] ,a    
borr[] :o has default$ on an eligible   
direct loan on :i* an in/itution is mak+
 paym5ts "u p>agraph 7#a7 %all be       
consid]$ 9 default on su* loan =        
purposes ( adv]se cr$it report+ &       
del9qu5t debt collection proc$ures "u   
,f$]al law4  7#e7 ,recov]y f borr[] ,any
 am\nts recov]$ f ! borr[] ( an eligible
 direct loan dur+ a p]iod 9 :i* an      
in/itution is mak+ paym5ts on ! loan "u 
p>agraph 7#a7 %all be subtract$ f !     
total out/&+ balance ( pr9cipal & int]e/
 due on ! loan4  7#f7 ,rule (           
con/ruction ,no?+ 9 ?is subsection %all 
be con/ru$ to limit ! rem$ies available 
"u ?is "p aga9/ ! borr[] ( an eligible  
,f$]al /ud5t loan4  7e7 ,r$uc$ int]e/   
rate ,not)/&+ any o!r provision ( law1 !
 int]e/ rate applicable to an eligible  
direct loan cosign$ by an in/itution    

p>ticipat+ 9 ! program "u ?is section   
%all be a rate det]m9$ by ! ,secret>y t 
is--  7#a7 l[] ?an ! /&>d rate          
applicable to ! loan "u section         
#dee7;b72 &  7#b7 r$uc$ bel[ su* /&>d   
rate by a p]c5tage t is proportionate to
 ! r$uc$ risk pos$ by ! loan1 z det]m9$ 
by ! ,secret>y4  7f7 ,li/ ( p>ticipat+  
in/itutions ,on an annual basis1 !      
,secret>y %all publi%1 on a publicly    
accessible website ( ! ,dep>tm5t (      
,education1 a li/ t id5tifies ea*       
in/itution p>ticipat+ 9 ! program "u ?is
 section = an academic ye>4  7g7        
,eligible direct loan def9$ ,9 ?is      
section1 ! t]m eligible direct loan     
means a loan made "u ?is "p on or aft]  
,july #a1 #bjbj4  4  #c4 ,modification (
 cohort default rate ?re%old  7a7 ,9    
g5]al ,section #dce7;a7 ( ! ,high]      
,education ,act ( #aife 7#bj ,u4,s4,c4  
#ajhe7;a77 is am5d$--  7#a7 9 p>agraph  
7#b7-- 7,a7 by /rik+ subp>agraphs 7,b7 &
 7,c7 & ins]t+ ! foll[+3  7,b7 ,=       
purposes ( det]m9ations "u subp>agraph  

7,a71 ! ?re%old p]c5tage is-- 7i7 #dj   
p]c5t1 9 ! case ( an in/itution t is    
p>ticipat+ 9 ! in/itutional cosign]     
program "u section #ded;,a 9 ! ye> 9 :i*
 ! cohort default rate is det]m9$2 or   
7ii7 #cj p]c5t1 9 ! case ( an in/itution
 t is n p>ticipat+ 9 su* program 9 ! ye>
 9 :i* ! cohort default rate is det]m9$4
  2 &  7,b7 by r$esignat+ subp>agraph   
7,d7 z subp>agraph 7,c72  7#b7 9        
p>agraph 7#c71 by /rik+ p>agraph        
7#b77;,b77iv7 & ins]t+ p>agraph         
7#b77;,b72 &  7#c7 9 p>agraph 7#g71 by  
/rik+ p>agraph 7#b77;,b77iv7 ea* place x
 appe>s & ins]t+ p>agraph 7#b77;,b74    
7b7 ,effective date ,! am5dm5ts made by 
subsection 7a7 %all take effect on ,july
 #a1 #bjbj4