,i  #aai? ,,congress  #a/ ,session  ,h4 
,r4 #bjjc  ,,9 ,,! ,,h\se ,,(           
,,repres5tatives  ,m>* #aj1 #bjbe,mr4   
,lawl] 7= himself1 ,mrs4 ,luna1 & ,mr4  
,mosk[itz7 introduc$ ! foll[+ bill2 :i* 
0 ref]r$ to ! ,committee on ,education &
 ,work=ce  ,a ,,bill  ,to am5d ! ,high] 
,education ,act ( #aife to l[] ! int]e/ 
rate on ,f$]al /ud5t loans to #b p]c5t4 
#a4 ,%ort title ,?is ,act may be cit$ z 
! ,af=dable ,loans = ,/ud5ts ,act4  #b4 
,program au?ority ,section #dea7;a7 ( ! 
,high] ,education ,act ( #aife 7#bj     
,u4,s4,c4 #ajhg;a7a77 is am5d$--  7#a7  
by /rik+ & 7#b7 & ins]t+ 7#b72 &  7#b7  
by ins]t+ 2 & 7#c7 to make loans "u     
section #dfj;,a7b7 aft] section #dei;,a4
  #c4 ,program = ! loan modification (  
eligible ,f$]al loans held by !         
,secret>y1 & ref9anc+ ( o!r ,f$]al /ud5t
 loans  7a7 ,loan modification &        
ref9anc+ ,"p ,d ( title ,,iv ( ! ,high] 
,education ,act ( #aife 7#bj ,u4,s4,c4  
#ajhg;a et seq47 is am5d$ by add+ at !  
end ! foll[+3  #dfj;,a4 ,program = !    

loan modification ( eligible ,f$]al     
loans held by ! ,secret>y1 & ref9anc+ ( 
o!r ,f$]al /ud5t loans  7a7 ,f$]al      
,direct ,loan ,modification ,! ,secret>y
 %all e/abli% & implem5t1 ) respect to  
ea* borr[] ( an eligible ,f$]al loans   
held by ! ,secret>y1 proc$ures to       
modify1 )\t any action f ! borr[]1 !    
t]ms ( su* loan s t beg9n+ on ! fir/    
,july #a aft] ! date ( enactm5t ( !     
,af=dable ,loans = ,/ud5ts ,act1 !      
applicable rate ( int]e/ %all be #b4j   
p]c5t on ! unpaid pr9cipal balance ( !  
loan4  7b7 ,ref9anc+ eligible ,f$]al    
loans n held by ! ,secret>y z ,f$]al    
,direct ,consolidation ,loans  7#a7 ,9  
g5]al ,! ,secret>y %all e/abli% &       
implem5t1 ) respect to ea* borr[] ( an  
eligible ,f$]al loan n held by !        
,secret>y1 proc$ures to ref9ance su*    
loan 9 accordance ) ! requirem5ts (     
p>agraph 7#b7 & )\t any action f !      
borr[]1 except t su* borr[] may opt out 
( su* proc$ures ) respect to su* loan4  
7#b7 ,proc$ures ,9 ref9anc+ an eligible 

,f$]al loan n held by ! ,secret>y )     
respect to a borr[] ( su* loan1 !       
,secret>y %all c>ry out ! foll[+3  7,a7 
,! ,secret>y %all make a ,f$]al ,direct 
,consolidation ,loan "u ?is subsection1 
9 an am\nt equal to ! sum ( ! unpaid    
pr9cipal1 accru$ unpaid int]e/1 & late  
*>ges ( ! eligible ,f$]al loan n held by
 ! ,secret>y4  7,b7 ,! ,secret>y %all   
pay ! proce$s ( su* ,f$]al ,direct      
,consolidation ,loan to ! hold] ( !     
eligible ,f$]al non-direct loan1 9 ord] 
to dis*>ge ! borr[] f any rema9+        
obligation ) respect to su* eligible    
,f$]al loan n held by ! ,secret>y4  7#c7
 ,t]ms & conditions ( ref9anc$ loans    
7,a7 ,9 g5]al ,a ,f$]al ,direct         
,consolidation ,loan made "u ?is        
subsection %all h ! same t]ms &         
conditions z a ,f$]al ,direct           
,consolidation ,loan t 0 n made "u ?is  
subsection1 except-- 7i7 t ! ,secret>y  
may adju/ su* t]ms & conditions z       
necess>y to enable ! borr[] to access   
loan =giv5ess or o!r b5efits available  

to ! borr[] "u ! loan be=e ref9anc+ "u  
?is subsection1 9 any case :]e su*      
b5efits are m g5]\s ?an provid$ "u a    
,f$]al ,direct ,consolidation ,loan2 &  
7ii7 z o!rwise provid$ 9 ?is subsection4
  7,b7 ,no orig9ation fees ,not)/&+     
section #dee7;c71 ! ,secret>y may n *>ge
 a borr[] ( a loan made "u ?is          
subsection an orig9ation fee = su* loan4
  7,c7 ,int]e/ rate ,! applicable rate (
 int]e/ = a loan made "u ?is subsection 
%all be #b4j p]c5t on ! unpaid pr9cipal 
balance ( ! loan4  7,d7 ,no automatic   
ext5sion ( repaym5t p]iod ,a loan made  
"u ?is subsection %all n result 9 !     
ext5sion ( ! duration ( ! repaym5t p]iod
 ( ! orig9al 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,e7
 ,rule ( con/ruction ,no?+ 9 ?is section
 %all be con/ru$ to-- 7i7 prohibit a    
borr[] ( an eligible ,f$]al loan n held 

by ! ,secret>y f consolidat+ su* a loan 
) any o!r loan eligible = consolidation 
"u ?is section into a s+le consolidation
 loan "u ?is section2 or  7ii7 require  
su* a borr[] to consolidate any su* loan
 ) any o!r loan eligible = consolidation
 "u ?is section into a s+le             
consolidation loan "u ?is section4  7c7 
,report ,n lat] ?an #ahj days aft] !    
second ,july #a aft] ! date ( enactm5t (
 ! ,af=dable ,loans = ,/ud5ts ,act1 & on
 an annual basis !reaft]1 ! ,secret>y   
%all submit a report to ! au?oriz+      
committees t includes--  7#a7 ! total   
numb] ( borr[]s ^: loans h be5 modifi$  
or ref9anc$ "u ?is section dur+ ! prec$+
 ye>2 &  7#b7 ! numb] ( su* borr[]s :o  
are del9qu5t 9 mak+ paym5ts on su* a    
loan4  7d7 ,def9itions ,9 ?is section3  
7#a7 ,eligible ,f$]al loan held by !    
,secret>y ,! t]m eligible ,f$]al loan   
held by ! ,secret>y means--  7,a7 any   
loan made "u ?is "p1 & fir/ disburs$    
be=e ! fir/ ,july #a aft] ! date (      
enactm5t ( ! ,af=dable ,loans = ,/ud5ts 

,act2  7,b7 any loan made1 insur$1 or   
gu>ante$ "u "p ,b1 & :i* is held by !   
,secret>y2  7,c7 any loan made "u "p ,e1
 & :i* is held by ! ,secret>y2 &  7,d7  
any loan made "u subp>t ,i ( "p ,a (    
title ,,vii ( ! ,public ,heal? ,s]vice  
,act 7#db ,u4,s4,c4 #bib et seq471 & :i*
 is held by ! ,secret>y4  7#b7 ,eligible
 ,f$]al loan n held by ! ,secret>y ,!   
t]m eligible ,f$]al loan n held by !    
,secret>y means any loan-- 7,a7 made1   
insur$1 or gu>ante$ "u "p ,b1 & :i* is n
 held by ! ,secret>y2  7,b7 made "u "p  
,e1 & :i* is n held by ! ,secret>y2 &   
7,c7 made "u--  7i7 subp>t ,i ( "p ,a ( 
title ,,vii ( ! ,public ,heal? ,s]vice  
,act 7#db ,u4,s4,c4 #bib et seq471 & :i*
 is n held by ! ,secret>y2  7ii7 subp>t 
,,ii ( "p ,a ( title ,,vii ( ! ,public  
,heal? ,s]vice ,act 7#db ,u4,s4,c4 #bibq
 et seq472 or  7iii7 "p ,e ( title      
,,viii ( ! ,public ,heal? ,s]vice ,act  
7#db ,u4,s4,c4 #big;a et seq474  7#c7   
,orig9al loan ,! t]m orig9al loan1 us$ )
 respect to a ,f$]al ,direct            

,consolidation ,loan made "u subsection 
7b71 means a loan = :i* a borr[]'s      
liability is dis*>g$ by su* ,f$]al      
,direct ,consolidation ,loan4  4  7d7   
,con=m+ am5dm5ts ,! ,high] ,education   
,act ( #aife 7#bj ,u4,s4,c4 #ajja et    
seq47 is am5d$-- 7#a7 9 section         
#dbh;,c7a77#c77;,b77i77,v7 7#bj         
,u4,s4,c4 #ajgh-c7c77;,b77i77,v77--     
7,a7 by /rik+ ! p]iod at ! end ( item   
7cc7 & ins]t+ a semicolon2  7,b7 by     
/rik+ ! p]iod at ! end ( item 7dd7 &    
ins]t+ 2 or2 &  7,c7 by add+ at ! end ! 
foll[+3  7ee7 = ! purpose ( obta9+ a    
,f$]al ,direct ,consolidation ,loan "u  
section #dfj;,a7b74  4  #d4 ,applicable 
rates ( int]e/ = loans made on or aft] !
 fir/ ,july #a aft] ! date ( enactm5t ( 
! ,af=dable ,loans = ,/ud5ts ,act       
,section #dee7;b77#h7 ( ! ,high]        
,education ,act ( #aife 7#bj ,u4,s4,c4  
#ajhg;e7b77#h77 is am5d$-- 7#a7 9 !     
p>agraph head+1 by ins]t+ & be=e ! fir/ 
,july #a aft] ! date ( enactm5t ( !     
,af=dable ,loans = ,/ud5ts ,act aft]    

,july #a1 #bjac2  7#b7 9 subp>agraph    
7,a71 by ins]t+ & be=e ! fir/ ,july #a  
aft] ! date ( enactm5t ( ! ,af=dable    
,loans = ,/ud5ts ,act aft] ,july #a1    
#bjac2  7#c7 9 subp>agraph 7,b71 by     
ins]t+ & be=e ! fir/ ,july #a aft] !    
date ( enactm5t ( ! ,af=dable ,loans =  
,/ud5ts ,act aft] ,july #a1 #bjac2  7#d7
 9 subp>agraph 7,c71 by ins]t+ & be=e ! 
fir/ ,july #a aft] ! date ( enactm5t ( !
 ,af=dable ,loans = ,/ud5ts ,act aft]   
,july #a1 #bjac2  7#e7 9 subp>agraph    
7,d71 by ins]t+ & be=e ! fir/ ,july #a  
aft] ! date ( enactm5t ( ! ,af=dable    
,loans = ,/ud5ts ,act aft] ,july #a1    
#bjac2  7#f7 by r$esignat+ subp>agraph  
7,f7 z subp>agraph 7,g72 &  7#g7 by     
ins]t+ aft] subp>agraph 7,e7 ! foll[+3  
7,f7 ,new loans on or aft] ! fir/ ,july 
#a aft] ! date ( enactm5t ( ! ,af=dable 
,loans = ,/ud5ts ,act ,not)/&+ ! prec$+ 
subp>agraphs ( ?is p>agraph1 = ,f$]al   
,direct ,/af=d ,loans1 ,f$]al ,direct   
,unsubsidiz$ ,/af=d ,loans1 ,f$]al      
,direct ,,plus ,loans1 & ,f$]al ,direct 

,consolidation ,loans = :i* ! fir/      
disbursem5t is made1 or ! application is
 receiv$1 on or aft] ! fir/ ,july #a    
aft] ! date ( enactm5t ( ! ,af=dable    
,loans = ,/ud5ts ,act1 ! applicable rate
 ( int]e/ %all be #b4j p]c5t on ! unpaid
 pr9cipal balance ( ! loan4  4