[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 282 Introduced in Senate (IS)]







110th CONGRESS
  1st Session
                                 S. 282

   To amend the Higher Education Act of 1965 to reduce over a 5-year 
    period the interest rate on certain undergraduate student loans.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            January 12, 2007

Mr. Durbin (for himself and Mr. Kennedy) introduced the following bill; 
     which was read twice and referred to the Committee on Health, 
                     Education, Labor, and Pensions

_______________________________________________________________________

                                 A BILL


 
   To amend the Higher Education Act of 1965 to reduce over a 5-year 
    period the interest rate on certain undergraduate student loans.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``College Student Relief Act of 
2007''.

SEC. 2. APPLICABLE INTEREST RATES.

    Section 427A(l) of the Higher Education Act of 1965 (20 U.S.C. 
1077a(l)) is amended--
            (1) in paragraph (1), by inserting ``and subject to 
        paragraph (4)'' after ``Notwithstanding subsection (h)''; and
            (2) by adding at the end the following:
            ``(4) Special rule for subsidized undergraduate loans.--
        Notwithstanding subsection (h), with respect to any loan made, 
        insured, or guaranteed under this part (other than a loan made 
        pursuant to section 428B, 428C, or 428H) to or for an 
        undergraduate student for which the first disbursement is made 
        on or after--
                    ``(A) July 1, 2007, the applicable rate of interest 
                shall be 6.12 percent on the unpaid principal balance 
                of the loan;
                    ``(B) July 1, 2008, the applicable rate of interest 
                shall be 5.44 percent on such balance;
                    ``(C) July 1, 2009, the applicable rate of interest 
                shall be 4.76 percent on such balance;
                    ``(D) July 1, 2010, the applicable rate of interest 
                shall be 4.08 percent on such balance; and
                    ``(E) July 1, 2011, the applicable rate of interest 
                shall be 3.40 percent on such balance.''.
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