,i  #aaith ,,congress  #ast ,session    
,h4 ,r4 #bjjc  ,,in ,,the ,,house ,,of  
,,representatives  ,march #aj1 #bjbe,mr4
 ,lawler 7for himself1 ,mrs4 ,luna1 and 
,mr4 ,moskowitz7 introduced the         
following bill2 which was referred to   
the ,committee on ,education and        
,workforce  ,a ,,bill  ,to amend the    
,higher ,education ,act of #aife to     
lower the interest rate on ,federal     
student loans to #b percent4  #a4 ,short
 title ,this ,act may be cited as the   
,affordable ,loans for ,students ,act4  
#b4 ,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;,a7b7 after section #dei;,a4  #c4  
,program for the loan modification of   
eligible ,federal loans held by the     
,secretary1 and refinancing of other    
,federal student loans  7a7 ,loan       
modification and refinancing ,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 ,program for   
the loan modification of eligible       
,federal loans held by the ,secretary1  
and refinancing of other ,federal       
student loans  7a7 ,federal ,direct     
,loan ,modification ,the ,secretary     
shall establish and implement1 with     
respect to each borrower of an eligible 
,federal loans held by the ,secretary1  
procedures to modify1 without any action
 from the borrower1 the terms of such   
loan so that beginning on the first     
,july #a after the date of enactment of 
the ,affordable ,loans for ,students    
,act1 the applicable rate of interest   
shall be #b4j percent on the unpaid     
principal balance of the loan4  7b7     
,refinancing eligible ,federal loans not
 held by the ,secretary as ,federal     
,direct ,consolidation ,loans  7#a7 ,in 
general ,the ,secretary shall establish 
and implement1 with respect to each     

borrower of an eligible ,federal loan   
not held by the ,secretary1 procedures  
to refinance such loan in accordance    
with the requirements of paragraph 7#b7 
and without any action from the         
borrower1 except that such borrower may 
opt out of such procedures with respect 
to such loan4  7#b7 ,procedures ,in     
refinancing an eligible ,federal loan   
not held by the ,secretary with respect 
to a borrower of such loan1 the         
,secretary shall carry out the          
following3  7,a7 ,the ,secretary shall  
make a ,federal ,direct ,consolidation  
,loan under this subsection1 in an      
amount equal to the sum of the unpaid   
principal1 accrued unpaid interest1 and 
late charges of the eligible ,federal   
loan not held by the ,secretary4  7,b7  
,the ,secretary shall pay the proceeds  
of such ,federal ,direct ,consolidation 
,loan to the holder of the eligible     
,federal non-direct loan1 in order to   
discharge the borrower from any         
remaining obligation with respect to    

such eligible ,federal loan not held by 
the ,secretary4  7#c7 ,terms and        
conditions of refinanced loans  7,a7 ,in
 general ,a ,federal ,direct            
,consolidation ,loan made under this    
subsection shall have the same terms and
 conditions as a ,federal ,direct       
,consolidation ,loan that was not made  
under this subsection1 except-- 7i7 that
 the ,secretary may adjust such terms   
and conditions as necessary to enable   
the borrower to access loan forgiveness 
or other benefits available to the      
borrower under the loan before          
refinancing under this subsection1 in   
any case where such benefits are more   
generous than provided under a ,federal 
,direct ,consolidation ,loan2 and  7ii7 
as otherwise provided in this           
subsection4  7,b7 ,no origination fees  
,notwithstanding section #dee7;c71 the  
,secretary may not charge a borrower of 
a loan made under this subsection an    
origination fee for such loan4  7,c7    
,interest rate ,the applicable rate of  

interest for a loan made under this     
subsection shall be #b4j percent on the 
unpaid principal balance of the loan4   
7,d7 ,no automatic extension of         
repayment period ,a loan made under this
 subsection shall not result in the     
extension of the duration of the        
repayment period of the original 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,e7 ,rule 
of construction ,nothing in this section
 shall be construed to-- 7i7 prohibit a 
borrower of an eligible ,federal loan   
not held by the ,secretary from         
consolidating such a loan with any other
 loan eligible for consolidation under  
this section into a single consolidation
 loan under this section2 or  7ii7      
require such a borrower to consolidate  
any such loan with any other loan       

eligible for consolidation under this   
section into a single consolidation loan
 under this section4  7c7 ,report ,not  
later than #ahj days after the second   
,july #a after the date of enactment of 
the ,affordable ,loans for ,students    
,act1 and on an annual basis thereafter1
 the ,secretary shall submit a report to
 the authorizing committees that        
includes--  7#a7 the total number of    
borrowers whose loans have been modified
 or refinanced under this section during
 the preceding year2 and  7#b7 the      
number of such borrowers who are        
delinquent in making payments on such a 
loan4  7d7 ,definitions ,in this        
section3 7#a7 ,eligible ,federal loan   
held by the ,secretary ,the term        
eligible ,federal loan held by the      
,secretary means--  7,a7 any loan made  
under this part1 and first disbursed    
before the first ,july #a after the date
 of enactment of the ,affordable ,loans 
for ,students ,act2  7,b7 any loan made1
 insured1 or guaranteed under part ,b1  

and which is held by the ,secretary2    
7,c7 any loan made under part ,e1 and   
which is held by the ,secretary2 and    
7,d7 any loan made under subpart ,i of  
part ,a of title ,,vii of the ,public   
,health ,service ,act 7#db ,u4,s4,c4    
#bib et seq471 and which is held by the 
,secretary4  7#b7 ,eligible ,federal    
loan not held by the ,secretary ,the    
term eligible ,federal loan not held by 
the ,secretary means any loan-- 7,a7    
made1 insured1 or guaranteed under part 
,b1 and which is not held by the        
,secretary2  7,b7 made under part ,e1   
and which is not held by the ,secretary2
 and  7,c7 made under--  7i7 subpart ,i 
of part ,a of title ,,vii of the ,public
 ,health ,service ,act 7#db ,u4,s4,c4   
#bib et seq471 and which is not held by 
the ,secretary2  7ii7 subpart ,,ii of   
part ,a of title ,,vii of the ,public   
,health ,service ,act 7#db ,u4,s4,c4    
#bibq et seq472 or  7iii7 part ,e of    
title ,,viii of the ,public ,health     
,service ,act 7#db ,u4,s4,c4 #big;a et  

seq474  7#c7 ,original loan ,the term   
original loan1 used with respect to a   
,federal ,direct ,consolidation ,loan   
made under subsection 7b71 means a loan 
for which a borrower's liability is     
discharged by such ,federal ,direct     
,consolidation ,loan4  4  7d7           
,conforming amendments ,the ,higher     
,education ,act of #aife 7#bj ,u4,s4,c4 
#ajja et seq47 is amended-- 7#a7 in     
section #dbh;,c7a77#c77;,b77i77,v7 7#bj 
,u4,s4,c4 #ajgh-c7c77;,b77i77,v77--     
7,a7 by striking the period at the end  
of item 7cc7 and inserting a semicolon2 
7,b7 by striking the period at the end  
of item 7dd7 and inserting 2 or2 and    
7,c7 by adding at the end the following3
  7ee7 for the purpose of obtaining a   
,federal ,direct ,consolidation ,loan   
under section #dfj;,a7b74  4  #d4       
,applicable rates of interest for loans 
made on or after the first ,july #a     
after the date of enactment of the      
,affordable ,loans for ,students ,act   
,section #dee7;b77#h7 of the ,higher    

,education ,act of #aife 7#bj ,u4,s4,c4 
#ajhg;e7b77#h77 is amended-- 7#a7 in the
 paragraph heading1 by inserting and    
before the first ,july #a after the date
 of enactment of the ,affordable ,loans 
for ,students ,act after ,july #a1      
#bjac2  7#b7 in subparagraph 7,a71 by   
inserting and before the first ,july #a 
after the date of enactment of the      
,affordable ,loans for ,students ,act   
after ,july #a1 #bjac2  7#c7 in         
subparagraph 7,b71 by inserting and     
before the first ,july #a after the date
 of enactment of the ,affordable ,loans 
for ,students ,act after ,july #a1      
#bjac2  7#d7 in subparagraph 7,c71 by   
inserting and before the first ,july #a 
after the date of enactment of the      
,affordable ,loans for ,students ,act   
after ,july #a1 #bjac2  7#e7 in         
subparagraph 7,d71 by inserting and     
before the first ,july #a after the date
 of enactment of the ,affordable ,loans 
for ,students ,act after ,july #a1      
#bjac2  7#f7 by redesignating           

subparagraph 7,f7 as subparagraph 7,g72 
and  7#g7 by inserting after            
subparagraph 7,e7 the following3  7,f7  
,new loans on or after the first ,july  
#a after the date of enactment of the   
,affordable ,loans for ,students ,act   
,notwithstanding the preceding          
subparagraphs of this paragraph1 for    
,federal ,direct ,stafford ,loans1      
,federal ,direct ,unsubsidized ,stafford
 ,loans1 ,federal ,direct ,,plus ,loans1
 and ,federal ,direct ,consolidation    
,loans for which the first disbursement 
is made1 or the application is received1
 on or after the first ,july #a after   
the date of enactment of the ,affordable
 ,loans for ,students ,act1 the         
applicable rate of interest shall be    
#b4j percent on the unpaid principal    
balance of the loan4  4