,i  #aai? ,,congress  #b;d ,session  ,h4
 ,r4 #ghaj  ,,9 ,,! ,,h\se ,,(          
,,repres5tatives  ,m>* #d1 #bjbf,mr4    
,?ompson ( ,cali=nia 7= himself & ,mr4  
,moylan7 introduc$ ! foll[+ bill2 :i* 0 
ref]r$ to ! ,committee on ,education &  
,work=ce  ,a ,,bill  ,to am5d ! ,high]  
,education ,act ( #aife to set int]e/   
rates = ,f$]al /ud5t loans made on or   
aft] ,july #a1 #bjbf1 at #b p]c5t1 & =  
o!r purposes4  #a4 ,%ort title ,?is ,act
 may be cit$ z ! ,l[]+ ,/ud5t ,loans    
,act4  #b4 ,int]e/ rates = ,f$]al /ud5t 
loans  7a7 ,f$]al ,direct ,loans        
,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 9 p>agraph 7#h7--   
7,a7 9 ! head+ ( su* p>agraph1 by /rik+ 
#bjac4 & ins]t+ #bjac & be=e ,july #a1  
#bjbf42 &  7,b7 9 subp>agraphs 7,a7     
?r\gh 7,d71 by ins]t+ & be=e ,july #a1  
#bjbf1 aft] ,july #a1 #bjac12 &  7#c7 by
 ins]t+ aft] p>agraph 7#h7 ! foll[+3    

7#i7 ,int]e/ rate provisions = loans on 
or aft] ,july #a1 #bjbf  7,a7 ,rates =  
,direct ,loans o!r ?an ,consolidation   
,loans  7i7 ,new loans ,not)/&+ ! prec$+
 p>agraphs ( ?is subsection1 = ,f$]al   
,direct ,/af=d ,loans1 ,f$]al ,direct   
,unsubsidiz$ ,/af=d ,loans1 & ,f$]al    
,direct ,,plus ,loans 7includ+ su* a    
loan made to a p>5t on behalf ( a       
dep5d5t /ud5t7 = :i* ! fir/ disbursem5t 
is made on or aft] ,july #a1 #bjbf1 !   
applicable rate ( int]e/ %all be #b     
p]c5t on ! unpaid pr9cipal balance ( !  
loan4  7ii7 ,exi/+ loans ,not)/&+ !     
prec$+ p>agraphs ( ?is subsection &     
subject to subp>agraphs 7,c7 & 7,d71 )  
respect to a loan describ$ 9 clause 7i7 
= :i* ! fir/ disbursem5t 0 made be=e    
,july #a1 #bjbf1 & = :i* ! applicable   
rate ( int]e/ is great] ?an #b p]c5t1   
beg9n+ on ,july #a1 #bjbf1 ! applicable 
rate ( int]e/ = su* loan %all be #b     
p]c5t on ! unpaid pr9cipal balance ( su*
 loan4  7,b7 ,rates = ,consolidation    
,loans  7i7 ,new loans ,not)/&+ ! prec$+

 p>agraphs ( ?is subsection1 any ,f$]al 
,direct ,consolidation ,loan = :i* !    
application is receiv$ on or aft] ,july 
#a1 #bjbf1 %all be> int]e/ at an annual 
rate on ! unpaid pr9cipal balance ( !   
loan t is #b p]c5t4  7ii7 ,exi/+ loans  
,not)/&+ ! prec$+ p>agraphs ( ?is       
subsection & subject to subp>agraphs    
7,c7 & 7,d71 any ,f$]al ,direct         
,consolidation ,loan = :i* ! application
 0 receiv$ be=e ,july #a1 #bjbf1 & :i*  
be>s int]e/ at an annual rate on !      
unpaid pr9cipal balance ( ! loan t is   
great] ?an #b p]c5t1 %all1 beg9n+ on    
,july #a1 #bjbf1 be> int]e/ at an annual
 rate on ! unpaid pr9cipal balance ( !  
loan t is #b p]c5t4  7iii7 ,,ffel       
consolidation loans ,a borr[] ( a       
consolidation loan made1 insur$1 or     
gu>ante$ "u "p ,b may consolidate su*   
loan into a ,f$]al ,direct              
,consolidation ,loan "u ?is "p 9        
accordance ) section                    
#dbh;,c7a77#c77;,b77i77,v74  7,c7       
,notice & opt out = exi/+ loans ,)      

respect to ea* borr[] ) a loan describ$ 
9 subp>agraph 7,a77ii7 or a ,f$]al      
,direct ,consolidation ,loan describ$ 9 
subp>agraph 7,b77ii71 ! ,secret>y %all--
 7i7 n lat] ?an ! date t is #ij days    
be=e ,july #a1 #bjbf1 provide to !      
borr[] notice ( ! adju/m5t ( !          
applicable rate ( int]e/ = su* a loan   
pursuant to ?is p>agraph1 :i* %all      
include in=mation relat+ to opt+ out (  
su* adju/m5t z describ$ 9 clause 7ii72 &
  7ii7 all[ ! borr[] to1 n lat] ?an #ij 
days aft] receiv+ su* notice1 opt out ( 
su* adju/m5t4  7,d7 ,t]ms & conditions  
,except z expressly provid$ 9           
subp>agraphs 7,a7 & 7,b71 no?+ 9 ?is    
p>agraph may be con/ru$ to alt] or      
affect ! t]ms1 conditions1 or b5efits ( 
a loan describ$ 9 ?is p>agraph4  7,e7   
,rate ,! applicable rate ( int]e/ "u ?is
 p>agraph = ,f$]al ,direct ,/af=d       
,loans1 ,f$]al ,direct ,unsubsidiz$     
,/af=d ,loans1 ,f$]al ,direct ,,plus    
,loans 7includ+ su* a loan made to a    
p>5t on behalf ( a dep5d5t /ud5t71 &    

,f$]al ,direct ,consolidation ,loans    
%all be fix$ = ! p]iod ( ! loan4  7,f7  
,loan s]vic]s ,n lat] ?an ! date t is   
#ij days be=e ,july #a1 #bjbf1 !        
,secret>y %all-- 7i7 notify /ud5t loan  
s]vic]s ( ! rate adju/m5ts = all loans  
pursuant to ?is p>agraph2 &  7ii7       
e/abli% a borr[] compla9t resolution    
process ) respect to any errors or      
delays relat+ to su* adju/m5ts4  4  7b7 
,,ffel loans ,section                   
#dbh;,c7a77#c77;,b77i77,v7 ( ! ,high]   
,education ,act ( #aife 7#bj ,u4,s4,c4  
#ajgh-c7;a77#c77;,b77i77,v77 is am5d$-- 
7#a7 9 item 7cc71 by /rik+ ! p]iod at ! 
end & ins]t+ a semicolon2  7#b7 9 item  
7dd71 by /rik+ ! p]iod at ! end & ins]t+
 2 &2 &  7#c7 by add+ at ! end ! foll[+3
  7ee7 = ! purpose ( be+ eligible = !   
annual int]e/ rate describ$ 9 section   
#dee7;b77#i77;,c74  4