[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6510 Introduced in House (IH)]

112th CONGRESS
  2d Session
                                H. R. 6510

To require holders of Federal student loans and private education loans 
  to apply prepayment amounts toward loans with the highest rates of 
                               interest.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 21, 2012

   Mr. Deutch (for himself, Ms. Castor of Florida, and Mr. Andrews) 
 introduced the following bill; which was referred to the Committee on 
                      Education and the Workforce

_______________________________________________________________________

                                 A BILL


 
To require holders of Federal student loans and private education loans 
  to apply prepayment amounts toward loans with the highest rates of 
                               interest.

    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 ``Student Loan Prepayment 
Standardization Act''.

SEC. 2. APPLICATION OF PREPAYMENT AMOUNTS.

    Section 455(d) of the Higher Education Act of 1965 (20 U.S.C. 
1087e(d)) is amended by adding at the end the following new paragraph:
            ``(6) Application of prepayment amounts.--
                    ``(A) In general.--Notwithstanding any other 
                provision of this subsection or any other provision of 
                law, with respect to private education loans or loans 
                under this part or part B made to a borrower, which are 
                held by the same holder and which have different 
                applicable rates of interest, the holder of such loans 
                shall apply the borrower's prepayment amount for such 
                loans, first toward any fees due on such loans 
                (including any late charges accrued or collection 
                costs), and then, except if otherwise requested by the 
                borrower, toward the outstanding balance of interest 
                and principal due on the loan with the highest 
                applicable rate of interest among such loans.
                    ``(B) Income-based repayment.--Subparagraph (A) 
                shall not apply to an income-based repayment plan under 
                section 493C.
                    ``(C) Definition.--The term `private education 
                loan' has the meaning given the term in section 140 of 
                the Truth in Lending Act.''.

SEC. 3. CONTRACT REQUIREMENT.

    Section 456(a)(2) of the Higher Education Act of 1965 (20 U.S.C. 
1087f(a)(2)) is amended by inserting before the period at the end of 
the first sentence the following: ``, including the requirement with 
respect to the application of prepayment amounts under section 
455(d)(6)''.
                                 <all>