[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[S. 682 Introduced in Senate (IS)]

113th CONGRESS
  1st Session
                                 S. 682

 To amend the Higher Education Act of 1965 to reset interest rates for 
                           new student loans.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             April 9, 2013

 Mr. Coburn (for himself, Mr. Burr, and Mr. Alexander) 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 reset interest rates for 
                           new 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 ``Comprehensive Student Loan 
Protection Act''.

SEC. 2. INTEREST RATES UNDER THE DIRECT LOAN PROGRAM.

    Section 455(b)(7) of the Higher Education Act of 1965 (20 U.S.C. 
1087e(b)(7)) is amended by adding at the end the following:
                    ``(E) Interest rate provision for new loans after 
                july 1, 2013.--
                            ``(i) In general.--Notwithstanding the 
                        preceding paragraphs of this subsection or 
                        subparagraph (A) or (B), for Federal Direct 
                        Stafford Loans, Federal Direct Unsubsidized 
                        Stafford Loans, and any Federal Direct PLUS 
                        Loan, for which the first disbursement is made 
                        on or after July 1, 2013, the applicable rate 
                        of interest shall, during any 12-month period 
                        beginning on July 1 and ending on June 30, be 
                        determined on the preceding June 1 and be equal 
                        to--
                                    ``(I) the bond equivalent rate of 
                                10-year Treasury bills auctioned at the 
                                final auction held prior to such June 
                                1; plus
                                    ``(II) 3.0 percent.
                            ``(ii) Consultation.--The Secretary shall 
                        determine the applicable rate of interest under 
                        this subparagraph after consultation with the 
                        Secretary of the Treasury and shall publish 
                        such rate in the Federal Register as soon as 
                        practicable after the date of determination.
                            ``(iii) Rate.--The applicable rate of 
                        interest determined under clause (i) for a 
                        Federal Direct Stafford Loan, a Federal Direct 
                        Unsubsidized Stafford Loan, or a Federal Direct 
                        PLUS Loan shall be fixed for the life of the 
                        Loan.''.

SEC. 3. SAVINGS FOR DEFICIT REDUCTION.

    (a) In General.--Not later than 1 year after the date of enactment 
of this Act, the Comptroller General of the United States shall 
determine the savings to the Federal Government resulting from the 
amendment made by section 2.
    (b) Amount To Be Used for Deficit Reduction.--Any savings 
determined under subsection (a) shall be transferred to the Treasury 
for deficit reduction.

SEC. 4. DETERMINATION OF BUDGETARY EFFECTS.

    The budgetary effects of this Act, for the purpose of complying 
with the Statutory Pay-As-You-Go Act of 2010, shall be determined by 
reference to the latest statement titled ``Budgetary Effects of PAYGO 
Legislation'' for this Act, submitted for printing in the Congressional 
Record by the Chairman of the Senate Budget Committee, provided that 
such statement has been submitted prior to the vote on passage.
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