[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3793 Introduced in House (IH)]
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116th CONGRESS
1st Session
H. R. 3793
To amend the Higher Education Act of 1965 to include interest rate
provisions for Federal loans made on or after July 1, 2020.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
July 17, 2019
Ms. Kendra S. Horn of Oklahoma introduced the following bill; which was
referred to the Committee on Education and Labor
_______________________________________________________________________
A BILL
To amend the Higher Education Act of 1965 to include interest rate
provisions for Federal loans made on or after July 1, 2020.
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 Accrual Support and
Help Act'' or the ``SLASH Act''.
SEC. 2. FEDERAL STUDENT LOAN INTEREST RATES.
Section 455(b) of the Higher Education Act of 1965 (20 U.S.C.
1087e(b)) is amended--
(1) in the header of paragraph (8), by inserting ``, and
before July 1, 2020'' after ``July 1, 2013'';
(2) in subparagraphs (A), (B), (C), and (D) of paragraph
(8), by inserting ``and before July 1, 2020,'' after ``July 1,
2013,'' each place it appears;
(3) by redesignating paragraphs (9) and (10) as paragraphs
(10) and (11), respectively; and
(4) by inserting at the end of paragraph (8) the following
new paragraph:
``(9) Interest rate provisions for new loans on or after
july 1, 2020.--
``(A) Rate for all new federal direct loans.--
Notwithstanding the preceding paragraphs of this
subsection, for Federal Direct Stafford Loans, Federal
Direct Unsubsidized Stafford Loans, and Federal Direct
PLUS Loans, for which the first disbursement is made on
or after July 1, 2020, the applicable rate of interest
shall, for loans disbursed 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 the
lesser of--
``(i) a rate equal to the high yield of the
10-year Treasury note auctioned at the final
auction held prior to such June 1; or
``(ii) 5.0 percent,
except that the applicable rate of interest for any 12-
month period (beginning on July 1 and ending on June
30) shall not exceed the applicable rate of interest
for the preceding 12-month period by more than 0.5
percent.
``(B) Consolidation loans.--Notwithstanding the
preceding paragraphs of this subsection, any Federal
Direct Consolidation Loan for which the application is
received on or after July 1, 2020, shall bear interest
at an annual rate on the unpaid principal balance of
the loan that is equal to the lesser of--
``(i) the weighted average of the interest
rates on the loans consolidated, rounded to the
nearest higher one-eighth of one percent; or
``(ii) the applicable rate of interest, as
determined on the preceding June 1 in
accordance with subparagraph (A), for Federal
Direct Stafford Loans disbursed during the 12-
month period (beginning on July 1 and ending on
June 30) during which the application for
consolidation is received.
``(C) Consultation.--The Secretary shall determine
the applicable rate of interest under subparagraph (A)
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.
``(D) Rate.--The applicable rate of interest
determined under this paragraph for a Federal Direct
Stafford Loan, a Federal Direct Unsubsidized Stafford
Loan, a Federal Direct PLUS Loan, or a Federal Direct
Consolidation Loan shall be fixed for the period of the
loan.''.
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