manchin-burr-harkin student loan interest proposal

7/28/2019 Manchin-Burr-Harkin student loan interest proposal

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BOM13455 S.L.C.

AMENDMENT NO.llll Calendar No.lll

Purpose: To establish student loan interest rates, and forother purposes.

IN THE SENATE OF THE UNITED STATES113th Cong., 1st Sess.

(no.)llllllllll

(title) llllllllllllllllllllllllllllll

lllllllllllllllllllllllllllllllll

lllllllllllllllllllllllllllllllll

Referred to the Committee onllllllllll

andordered to be printed

Ordered to lie on the table and to be printed

AMENDMENT intended to be proposed by Mr. MANCHIN (for

himself, Mr. BURR, Mr. KING, Mr. COBURN, Mr. CAR-

PER, Mr. ALEXANDER, and Mr. DURBIN)

Viz:

Strike all after the first word and insert the following:1

1. SHORT TITLE.2

This Act may be cited as the Bipartisan Student3

Loan Certainty Act of 2013.4

SEC. 2. INTEREST RATES.5

(a) INTEREST RATES.Section 455(b) of the Higher6

Education Act of 1965 (20 U.S.C. 1087e(b)) is amend-7

ed8

(1) in paragraph (7)9


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BOM13455 S.L.C.

(A) in the paragraph heading, by inserting1

AND BEFORE JULY 1, 2013 after ON OR2

AFTER JULY 1, 2006;3

(B) in subparagraph (A), by inserting4

and before July 1, 2013, after on or after5

July 1, 2006,;6

(C) in subparagraph (B), by inserting7


July 1, 2006,; and9

(D) in subparagraph (C), by inserting10


July 1, 2006,;12

(2) by redesignating paragraphs (8) and (9) as13

paragraphs (9) and (10), respectively; and14

(3) by inserting after paragraph (7) the fol-15

lowing:16

(8) INTEREST RATE PROVISIONS FOR NEW17

LOANS ON OR AFTER JULY 1, 2013.18

(A) RATES FOR UNDERGRADUATE FDSL19

AND FDUSL.Notwithstanding the preceding20

paragraphs of this subsection, for Federal Di-21

rect Stafford Loans and Federal Direct Unsub-22

sidized Stafford Loans issued to undergraduate23

students, for which the first disbursement is24

made on or after July 1, 2013, the applicable25


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BOM13455 S.L.C.

rate of interest shall, for loans disbursed during1

any 12-month period beginning on July 1 and2

ending on June 30, be determined on the pre-3

ceding June 1 and be equal to the lesser of4

(i) a rate equal to the yield of the5

10-year Treasury note auctioned at the6

final auction held prior to such June 17

plus 2.05 percent; or8

(ii) 8.25 percent.9

(B) RATES FOR GRADUATE AND PROFES-10

SIONAL FDUSL.Notwithstanding the pre-11

ceding paragraphs of this subsection, for Fed-12

eral Direct Unsubsidized Stafford Loans issued13

to graduate or professional students, for which14

the first disbursement is made on or after July15

1, 2013, the applicable rate of interest shall, for16

loans disbursed during any 12-month period be-17

ginning on July 1 and ending on June 30, be18

determined on the preceding June 1 and be19

equal to the lesser of20





(ii) 9.5 percent.25


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BOM13455 S.L.C.

(C) PLUS LOANS.Notwithstanding the1

preceding paragraphs of this subsection, for2

Federal Direct PLUS Loans, for which the first3

disbursement is made on or after July 1, 2013,4

the applicable rate of interest shall, for loans5

disbursed during any 12-month period begin-6

ning on July 1 and ending on June 30, be de-7

termined on the preceding June 1 and be equal8

to the lesser of9





(ii) 10.5 percent.14

(D) CONSOLIDATION LOANS.Notwith-15

standing the preceding paragraphs of this sub-16

section, any Federal Direct Consolidation Loan17

for which the application is received on or after18

July 1, 2013, shall bear interest at an annual19

rate on the unpaid principal balance of the loan20

that is equal to the weighted average of the in-21

terest rates on the loans consolidated, rounded22

to the nearest higher one-eighth of one percent.23

(E) CONSULTATION.The Secretary shall24

determine the applicable rate of interest under25


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BOM13455 S.L.C.

this subparagraph after consultation with the1

Secretary of the Treasury and shall publish2

such rate in the Federal Register as soon as3

practicable after the date of determination.4

(F) RATE.The applicable rate of inter-5

est determined under this paragraph for a Fed-6

eral Direct Stafford Loan, a Federal Direct Un-7

subsidized Stafford Loan, or a Federal Direct8

PLUS Loan shall be fixed for the period of the9

loan..10

(b) EFFECTIVE DATE.The amendments made by11

subsection (a) shall take effect as if enacted on July 1,12

2013.13

SEC. 3. DETERMINATION OF BUDGETARY EFFECTS.14

The budgetary effects of this Act, for the purpose of15

complying with the Statutory Pay-As-You-Go Act of 2010,16

shall be determined by reference to the latest statement17

titled Budgetary Effects of PAYGO Legislation for this18

Act, submitted for printing in the Congressional Record19

by the Chairman of the Senate Budget Committee, pro-20

vided that such statement has been submitted prior to the21

vote on passage.22


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BOM13455 S.L.C.

SEC. 4. STUDY ON THE ACTUAL COST OF ADMINISTERING1

THE FEDERAL STUDENT LOAN PROGRAMS.2

Not later than 120 days after the date of enactment3

of this Act, the Comptroller General of the United States4

shall5

(1) complete a study that determines the actual6

cost to the Federal Government of carrying out the7

Federal student loan programs authorized under8

title IV of the Higher Education Act of 1965 (209

U.S.C. 1070 et seq.), which shall10

(A) provide estimates relying on accurate11

information based on past, current, and pro-12

jected data as to the appropriate index and13

mark-up rate for the Federal Governments cost14

of borrowing that would allow the Federal Gov-15

ernment to effectively administer and cover the16

cost of the Federal student programs author-17

ized under title IV of the Higher Education Act18

of 1965 (20 U.S.C. 1070 et seq.) under the19

scoring rules outlined in the Federal Credit Re-20

form Act of 1990 (2 U.S.C. 661 et seq.);21

(B) provide the information described in22

this section in a way that separates out admin-23

istrative costs, interest rate, and other loan24

terms and conditions; and25


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BOM13455 S.L.C.

(C) set forth clear recommendations to the1

relevant authorizing committees of Congress as2

to how future legislation can incorporate the re-3

sults of the study described in this section to4

allow for the administration of the Federal stu-5

dent loan programs authorized under title IV of6

the Higher Education Act of 1965 (20 U.S.C.7

1070 et seq.) without generating any additional8

revenue to the Federal Government except rev-9

enue that is needed to carry out such programs;10

and11

(2) prepare and submit a report to the Com-12

mittee on Health, Education, Labor, and Pensions13

of the Senate and the Committee on Education and14

the Workforce of the House of Representatives set-15

ting forth the conclusions of the study described in16

this section in such a manner that the recommenda-17

tions included in the report can inform future reau-18

thorizations of the Higher Education Act of 196519

(20 U.S.C. 1001 et seq.).20

manchin-burr-harkin student loan interest proposal

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