II 110th CONGRESS 1st Session S. 282 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.

1.

Short title

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

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. .