,i  #aah? ,,congress  #a/ ,session  ,h4 
,r4 #egaj  ,,9 ,,! ,,h\se ,,(           
,,repres5tatives  ,septemb] #bf1        
#bjbc,mr4 ,g>am5di 7= himself & ,mr4    
,fitzpatrick7 introduc$ ! foll[+ bill2  
:i* 0 ref]r$ to ! ,committee on         
,education & ! ,work=ce  ,a ,,bill  ,to 
provide = ! ref9anc+ & recalculation (  
c]ta9 ,f$]al /ud5t loans1 & = o!r       
purposes4  #a4 ,%ort title ,?is ,act may
 be cit$ z ! ,/ud5t ,loan ,ref9anc+ &   
,recalculation ,act4  #b4 ,ref9anc+     
programs  7a7 ,program au?ority ,section
 #dea7;a7 ( ! ,high] ,education ,act (  
#aife 7#bj ,u4,s4,c4 #ajhg;a7a77 is     
am5d$-- 7#a7 by /rik+ & 7#b7 & ins]t+   
7#b72 &  7#b7 by ins]t+ 2 & 7#c7 to make
 loans "u section #dfj;,a aft] section  
#dei;,a4  7b7 ,ref9anc+ program ,"p ,d (
 title ,,iv ( ! ,high] ,education ,act (
 #aife 7#bj ,u4,s4,c4 #ajhg;a et seq47  
is am5d$ 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 ,ref9anc+ &   
,recalculation ,act1 ! ,secret>y %all   
e/abli% a program "u :i* ! ,secret>y1 ^u
 ! receipt ( an application f a qualifi$
 borr[]1 reissues ! borr[]'s orig9al    
loan "u ?is "p or "p ,b z 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 ,reissu+ loans     
7#a7 ,f$]al ,direct ,loans ,^u          
application ( a qualifi$ borr[]1 !      
,secret>y %all reissue a ,f$]al ,direct 
,/af=d ,loan1 a ,f$]al ,direct          
,unsubsidiz$ ,/af=d ,loan1 a ,f$]al     
,direct ,,plus ,loan1 or a ,f$]al       
,direct ,consolidation ,loan ( !        
qualifi$ borr[]1 = :i* ! fir/           
disbursem5t 0 made1 or ! application = !
 reissuance ( a loan "u ?is section 0   
receiv$ be=e ,july #a1 #bjbd1 9 an am\nt
 equal to ! sum (-- 7,a7 ! unpaid       
pr9cipal1 accru$ unpaid int]e/1 & late  
*>ges ( ! orig9al loan2 &  7,b7 !       
adm9i/rative fee "u subsection 7d77#c74 

7#b7 ,dis*>g+ & reissu+ ,,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   
made be=e ,july #a1 #bjaj1 ! ,secret>y  
%all reissue su* loan z a loan "u ?is   
"p1 9 an am\nt equal to ! sum ( ! unpaid
 pr9cipal1 accru$ unpaid int]e/1 & late 
*>ges ( ! orig9al loan & ! adm9i/rative 
fee "u subsection 7d77#c71 to ! borr[] 9
 accordance ) ! foll[+3 7,a7 ,!         
,secret>y %all pay ! proce$s ( su*      
reissu$ 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 ,! ,secret>y %all   
reissue-- 7i7 a loan orig9ally made1    
insur$1 or gu>ante$ "u section #dbh z a 
,f$]al ,direct ,/af=d ,loan2  7ii7 a    
loan orig9ally made1 insur$1 or gu>ante$
 "u section #dbh;,b z a ,f$]al ,direct  
,,plus ,loan2  7iii7 a loan orig9ally   
made1 insur$1 or gu>ante$ "u section    

#dbh;,h z a ,f$]al ,direct ,unsubsidiz$ 
,/af=d ,loan2 &  7iv7 a loan orig9ally  
made1 insur$1 or gu>ante$ "u section    
#dbh;,c z a ,f$]al ,direct              
,consolidation ,loan4  7,c7 ,! int]e/   
rate = ea* loan reissu$ "u ?is p>agraph 
%all be ! rate provid$ "u subsection    
7c74  7c7 ,int]e/ rate  7#a7 ,9 g5]al ,!
 int]e/ rate = ! reissu$ ,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 ! high yield ( ! #aj-ye>
 ,treasury note auction$ at ! f9al      
auction held prior to ! fir/ day ( !    
mon? 9 :i* ! application = reissuance "u
 ?is section is receiv$1 plus  7,b7 #a4j
 p]c5t4  7#b7 ,fix$ ,rate ,! applicable 
rate ( int]e/ det]m9$ "u p>agraph 7#a7 =
 a reissu$ loan "u ?is section %all be  
fix$ = ! p]iod ( ! loan4  7d7 ,t]ms &   
conditions ( loans  7#a7 ,9 g5]al ,a    
loan t is reissu$ "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 ,reissu+ a loan "u ?is   
section %all n result 9 ! ext5sion ( !  
duration ( ! repaym5t p]iod ( ! loan1 & 
! borr[] %all reta9 ! 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  7#c7 ,adm9i/rative fee ,!
 ,secret>y %all *>ge ! borr[] ( a loan  
reissu$ "u ?is section an adm9i/rative  
fee ( n m ?an #j4e p]c5t ( ! sum ( !    
unpaid pr9cipal1 accru$ unpaid int]e/1 &
 late *>ges1 ( ! orig9al loan4  7e7     
,def9ition ( qualifi$ borr[]  7#a7 ,9   
,g5]al ,! t]m qualifi$ borr[] means a   
borr[]-- 7,a7 ( a loan "u ?is "p or "p  
,b = :i* ! fir/ disbursem5t 0 made1 or !
 application = reissuance "u ?is section
 0 receiv$1 be=e ,july #a1 #bjbd2 &     
7,b7 :o meets ! eligibility requirem5ts 
bas$ on income or debt-to-income ratio  
e/abli%$ by ! ,secret>y4  7#b7 ,income  

requirem5ts ,n lat] ?an #ahj days aft] !
 date ( enactm5t ( ! ,/ud5t ,loan       
,ref9anc+ & ,recalculation ,act1 !      
,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$4  7f7 ,expiration (        
au?ority ,! ,secret>y's au?ority to     
reissue loans "u ?is section %all expire
 on ! date t is det]m9$ 9 accordance )  
section #d7;c7 ( ! ,/ud5t ,loan         
,ref9anc+ & ,recalculation ,act4  4  7c7
 ,am5dm5ts to public s]vice repaym5t    
plan provisions ,section #dee7m7 ( !    
,high] ,education ,act ( #aife 7#bj     
,u4,s4,c4 #ajhg;e7m77 is am5d$-- 7#a7 by
 r$esignat+ p>agraphs 7#c7 & 7#d7 z     
p>agraphs 7#d7 & 7#e71 respectively2    
7#b7 by ins]t+ aft] p>agraph 7#b7 !     
foll[+3  7#c7 ,special rules = section  
#dfj;,a loans  7,a7 ,ref9anc$ ,f$]al    
,direct loans ,not)/&+ p>agraph 7#a71 9 
det]m9+ ! numb] ( mon?ly paym5ts t meet 

! requirem5ts ( su* p>agraph = an       
eligible ,f$]al ,direct ,loan reissu$ "u
 section #dfj;,a t 0 orig9ally a loan "u
 ?is "p1 ! ,secret>y %all include all   
mon?ly paym5ts made on ! orig9al loan t 
meet ! requirem5ts ( su* p>agraph4  7,b7
 ,ref9anc$ ,,ffel loans ,9 ! case ( an  
eligible ,f$]al ,direct ,loan reissu$ "u
 section #dfj;,a t 0 orig9ally a loan "u
 "p ,b1 only mon?ly paym5ts made aft] ! 
date on :i* ! loan 0 reissu$ may be     
includ$ = purposes ( p>agraph 7#a74  2 &
  7#c7 9 p>agraph 7#d77;,a7 7z          
r$esignat$ by p>agraph 7#a7 ( ?is       
subsection71 by ins]t+ 7includ+ any     
,f$]al ,direct ,/af=d ,loan1 ,f$]al     
,direct ,,plus ,loan1 ,f$]al ,direct    
,unsubsidiz$ ,/af=d ,loan1 or ,f$]al    
,direct ,consolidation ,loan reissu$ "u 
section #dfj;,a7 be=e ! p]iod at ! end4 
7d7 ,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         
,ref9anc$ ,f$]al ,direct & ,,ffel loans 

,9 calculat+ ! p]iod ( "t dur+ :i* a    
borr[] ( a loan t is reissu$ "u section 
#dfj;,a has made mon?ly paym5ts =       
purposes ( subsection 7b77#g71 !        
,secret>y %all deem ! p]iod to include  
all mon?ly paym5ts made = ! orig9al     
loan1 & all mon?ly paym5ts made = !     
reissu$ loan1 t o!rwise meet !          
requirem5ts ( ?is section4  4  #c4      
,int]e/ rates  7a7 ,int]e/ rates        
,section #dee7;b7 ( ! ,high] ,education 
,act ( #aife 7#bj ,u4,s4,c4 #ajhg;e7b77 
is am5d$-- 7#a7 by r$esignat+ p>agraphs 
7#i7 & 7#aj7 z p>agraphs 7#aj7 & 7#aa71 
respectively2 &  7#b7 by ins]t+ aft]    
p>agraph 7#h7 ! foll[+3  7#i7 ,int]e/   
rate provisions = new loans on or aft]  
,july #a1 #bjbd  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
 #bjbd1 ! 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$+ ,june #a & 
be equal to ! less] (-- 7i7 a rate equal
 to-- 7,i7 ! high yield ( ! #aj-ye>     
,treasury note auction$ at ! f9al       
auction held prior to su* ,june #a1 plus
  7,,ii7 #a p]c5t2 or  7ii7 #h4be 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 #bjbd1 ! 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$+   
,june #a & be equal to ! less] (-- 7i7 a
 rate equal to-- 7,i7 ! high yield ( !  
#aj-ye> ,treasury note auction$ at !    
f9al auction held prior to su* ,june #a1
 plus  7,,ii7 #a p]c5t2 or  7ii7 #i4e   
p]c5t4  7,c7 ,,plus ,loans ,not)/&+ !   
prec$+ p>agraphs ( ?is subsection1 =    

,f$]al ,direct ,,plus ,loans1 = :i* !   
fir/ disbursem5t is made on or aft]     
,july #a1 #bjbd1 ! applicable rate (    
int]e/ %all1 = loans disburs$ dur+ any  
#ab-mon? p]iod beg9n+ on ,july #a & end+
 on ,june #cj1 be det]m9$ on ! prec$+   
,june #a & be equal to ! less] (-- 7i7 a
 rate equal to-- 7,i7 ! high yield ( !  
#aj-ye> ,treasury note auction$ at !    
f9al auction held prior to su* ,june #a1
 plus  7,,ii7 #a p]c5t2 or  7ii7 #aj4e  
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 #bjbd1 
%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 & %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  7b7 ,9 s*ool def]m5t ,section        
#dee7;f7 ( ! ,high] ,education ,act (   
#aife 7#bj ,u4,s4,c4 #ajhg;e7f77 is     
am5d$-- 7#a7 9 p>agraph 7#a71 9 ! matt] 
prec$+ subp>agraph 7,a71 by /rik+ ,a    
borr[] & ins]t+ ,except z provid$ 9     
p>agraph 7#e71 a borr[]2  7#b7 9        
p>agraph 7#b77;,a7-- 7,a7 by /rik+ !    
matt] foll[+ clause 7ii72  7,b7 9 clause
 7ii71 by /rik+ ! comma at ! end &      
ins]t+ 2 or2 &  7,c7 by add+ at ! end ! 
foll[+3  7iii7 is s]v+ 9 a m$ical1      
vet]9>y1 or d5tal int]n%ip or resid5cy  
program2  2 &  7#c7 by add+ at ! end !  
foll[+ new p>agraph3  7#f7 ,special rule
 = 9 s*ool def]m5t ,not)/&+ any o!r     
provision ( ?is ,act1 a borr[] describ$ 
9 p>agraph 7#b77;,a7 %all be eligible = 

a def]m5t1 dur+ :i* p]iodic in/allm5ts (
 pr9cipal ne$ n be paid1 & int]e/-- 7,a7
 %all n accrue1 9 ! case ( a borr[] ) an
 expect$ family contribution ( n m ?an  
#aj1jjj 7comput$ 9 accordance ) "p ,f ( 
?is title72 &  7,b7 %all accrue at !    
rate equal to ! high yield ( ! #aj-ye>  
,treasury note applicable to su* loan "u
 subsection 7b77#i71 9 ! case ( a borr[]
 ( an unsubsidiz$ loan ) an expect$     
family contribution ( m ?an #aj1jjj     
7comput$ 9 accordance ) "p ,f ( ?is     
title74  4  7c7 ,effective date ,!      
am5dm5ts made by subsections 7a7 & 7b7  
%all take effect on ,july #a1 #bjbd4    
#d4 ,elim9ation ( orig9ation fees =     
,f$]al ,direct ,loans  7a7 ,s5se (      
,congress ,x is ! s5se ( ,congress t no 
orig9ation fees %\ld be *>g$ on any     
future ,f$]al ,direct ,loans4  7b7      
,repeal ( orig9ation fees ,subsection   
7c7 ( section #dee ( ! ,high] ,education
 ,act ( #aife 7#bj ,u4,s4,c4 #ajhg;e7c77
 is repeal$4  7c7 ,effective date ,!    
am5dm5t made by subsection 7b7 %all     

apply ) respect to loans made "u "p ,d (
 title ,,iv ( ! ,high] ,education ,act (
 #aife 7#bj ,u4,s4,c4 #ajhg;a et seq47 =
 :i* ! fir/ disbursem5t ( pr9cipal is   
made1 or1 9 ! case ( a ,f$]al ,direct   
,consolidation ,loan1 ! application is  
receiv$1 on ! fir/ ,july #a aft] ! date 
( enactm5t ( ?is ,act4  #e4 ,elim9ation 
( int]e/ capitalization  7a7 ,f$]al plus
 loans ,section #dbh;,b7d77#b7 ( !      
,high] ,education ,act ( #aife 7#bj     
,u4,s4,c4 #ajgh-b7;d77#b77 is am5d$ to  
read z foll[s3  7#b7 ,no capitalization 
( int]e/ ,int]e/ on loans made "u ?is   
section = :i* paym5ts ( pr9cipal are    
def]r$ pursuant to p>agraph 7#a7 %all be
 paid mon?ly or qu>t]ly1 if agre$ ^u by 
! borr[] & ! l5d] & %all n be           
capitaliz$4  4  7b7 ,f$]al consolidation
 loans def]rals ,section                
#dbh;,c7b77#d77;,c77ii77,,iii7 ( !      
,high] ,education ,act ( #aife 7#bj     
,u4,s4,c4 #ajgh-c7;b77#d77;,c77,,iii77  
is am5d$ by /rik+ or capitaliz$14  7c7  
,loan limits = unsubsidiz$ ,/af=d loans 

,section #dbh;,h7d77#e7 ( ! ,high]      
,education ,act ( #aife 7#bj ,u4,s4,c4  
#ajgh-h7;d77#e77 is am5d$ by ins]t+ be=e
 ! date ( enactm5t ( ! ,/ud5t ,loan     
,ref9anc+ & ,recalculation ,act aft]    
,int]e/ capitaliz$4  7d7 ,unsubsidiz$   
,/af=d loans = middle income borr[]s    
,section #dbh;,h7e77#b7 ( ! ,high]      
,education ,act ( #aife 7#bj ,u4,s4,c4  
#ajgh-h7;e77#b77 is am5d$-- 7#a7 9 !    
head]1 by /rik+ ,capitalization & ins]t+
 ,no capitalization2  7#b7 9 subp>agraph
 7,a71 9 ! matt] be=e clause 7i71 by    
/rik+ 1 if agre$ ^u by ! borr[] & ! l5d]
 & all t foll[s ?r\gh clause 7ii77,,iv7 
& ins]t+ be paid mon?ly or qu>t]ly1 if  
agre$ ^u by ! borr[] & ! l5d] & %all n  
be capitaliz$42  7#c7 by /rik+          
subp>agraph 7,b72 &  7#d7 by r$esignat+ 
subp>agraph 7,c7 z subp>agraph 7,b74    
7e7 ,income cont+5t repaym5t ,section   
#dee7;e77#e7 ( ! ,high] ,education ,act 
( #aife 7#bj ,u4,s4,c4 #ajhg;e7e77#e77  
is am5d$ by /rik+ ! la/ s5t5ce & ins]t+ 
,no int]e/ may be capitaliz$ on su* loan

 on or aft] ! date ( ! enactm5t ( !     
,/ud5t ,loan ,ref9anc+ & ,recalculation 
,act1 & ! ,secret>y %all promulgate     
regulations ) respect to ! treatm5t (   
accru$ int]e/ t is n capitaliz$44  7f7  
,effect ( def]m5t on pr9cipal & int]e/  
,section #dee7;f77#a77;,b7 ( ! ,high]   
,education ,act ( #aife 7#bj ,u4,s4,c4  
#ajhg;e7f77#a77;,b77 is am5d$ by /rik+  
capitaliz$ or4  7g7 ,income-,bas$       
repaym5t program ,section #dic;,c7b77#c7
 ( ! ,high] ,education ,act ( #aife 7#bj
 ,u4,s4,c4 #ajih;e7b77#c77 is am5d$ to  
read z foll[s3  7#c7 on subsidiz$ loans1
 any int]e/ due & n paid "u p>agraph    
7#b7 %all be paid by ! ,secret>y = a    
p]iod ( n m ?an #c ye>s aft] ! date ( ! 
borr[]'s election "u p>agraph 7#a71     
except t su* p]iod %all n include any   
p]iod dur+ :i* ! borr[] is 9 def]m5t due
 to an economic h>d%ip describ$ 9       
section #dce7o72  4  7h7 ,notes &       
insurance c]tificates 9 comb9$ paym5t   
plans ,section #dhe;,a7f7 ( ! ,high]    
,education ,act ( #aife 7#bj ,u4,s4,c4  

#ajib;a7f77 is am5d$ by add+ at ! end ! 
foll[+ new p>agraph3  7#c7 ,treatm5t (  
int]e/ ,n )/&+ p>agraphs 7#a7 & 7#b71   
beg9n+ on ! date ( enactm5t ( ! ,/ud5t  
,loan ,ref9anc+ & ,recalculation ,act1  
int]e/ on a loan reissu$ "u subsection  
7e7 %all n be capitaliz$1 & int]e/ %all 
only accrue on ! p]c5tage ( su* reissu$ 
loan t is equal to-- 7,a7 ! am\nt ( !   
out/&+ pr9cipal on ! orig9al loan on !  
date x 0 reissu$2 divid$ by  7,b7 !     
total am\nt ( su* reissu$ loan on ! date
 su* loan 0 reissu$4  4  7i7 ,default   
r$uction program ,section               
#dbh;,f7a77#a77;,e7 ( ! ,high]          
,education ,act ( #aife 7#bj ,u4,s4,c4  
#ajgh-f7;a77#a77;,e77 is am5d$-- 7#a7 9 
clause 7i71 by /rik+ & at ! end2  7#b7 9
 clause 7ii71 by /rik+ ! p]iod at ! end 
& ins]t+ a semicolon2 &  7#c7 by add+ to
 ! end ! foll[+3  7iii7 = a loan assign$
 on or aft] ! date ( enactm5t ( ! ,/ud5t
 ,loan ,ref9anc+ & ,recalculation ,act1 
! int]e/ out/&+ at ! "t ( ! assignm5t ( 
su* loan1 & any int]e/ accru+ aft] su*  

"t1 %all n be capitaliz$2 &  7iv7 beg9n+
 on ! date ( enactm5t ( ! ,/ud5t ,loan  
,ref9anc+ & ,recalculation ,act1 int]e/ 
%all only accrue on ! p]c5tage ( su* a  
loan t is equal to-- 7,i7 ! am\nt ( !   
out/&+ pr9cipal on ! orig9al loan on !  
date x 0 assign$2 divid$ by  7,,ii7 !   
total am\nt ( su* assign$ loan1 includ+ 
int]e/ out/&+ at ! "t ( ! assignm5t (   
su* loan & ! am\nt add$ by ! gu>anty    
ag5cy 9 accordance ) clause 7i71 on !   
date su* loan 0 assign$4  4