[113th Congress Public Law 28]
[From the U.S. Government Publishing Office]



[[Page 505]]

              BIPARTISAN STUDENT LOAN CERTAINTY ACT OF 2013

[[Page 127 STAT. 506]]

Public Law 113-28
113th Congress

                                 An Act


 
 To amend the Higher Education Act of 1965 to establish interest rates 
for new loans made on or after July 1, 2013, to direct the Secretary of 
 Education to convene the Advisory Committee on Improving Postsecondary 
   Education Data to conduct a study on improvements to postsecondary 
       education transparency at the Federal level, and for other 
            purposes. <<NOTE: Aug. 9, 2013 -  [H.R. 1911]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, <<NOTE: Bipartisan 
Student Loan Certainty Act of 2013. 20 USC 1001 note.>> 
1. SHORT TITLE.

    This Act may be cited as the ``Bipartisan Student Loan Certainty Act 
of 2013''.
SEC. 2. INTEREST RATES.

    (a) Interest Rates.--Section 455(b) of the Higher Education Act of 
1965 (20 U.S.C. 1087e(b)) is amended--
            (1) in paragraph (7)--
                    (A) in the paragraph heading, by inserting ``and 
                before july 1, 2013'' after ``on or after july 1, 
                2006'';
                    (B) in subparagraph (A), by inserting ``and before 
                July 1, 2013,'' after ``on or after July 1, 2006,'';
                    (C) in subparagraph (B), by inserting ``and before 
                July 1, 2013,'' after ``on or after July 1, 2006,''; and
                    (D) in subparagraph (C), by inserting ``and before 
                July 1, 2013,'' after ``on or after July 1, 2006,'';
            (2) by redesignating paragraphs (8) and (9) as paragraphs 
        (9) and (10), respectively; and
            (3) by inserting after paragraph (7) the following:
            ``(8) <<NOTE: Time period.>>  Interest rate provisions for 
        new loans on or after july 1, 2013.--
                    ``(A) Rates for undergraduate fdsl and fdusl.--
                Notwithstanding the preceding paragraphs of this 
                subsection, for Federal Direct Stafford Loans and 
                Federal Direct Unsubsidized Stafford Loans issued to 
                undergraduate students, for which the first disbursement 
                is made on or after July 1, 2013, 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 plus 2.05 
                      percent; or
                          ``(ii) 8.25 percent.

[[Page 127 STAT. 507]]

                    ``(B) Rates for graduate and professional fdusl.--
                Notwithstanding the preceding paragraphs of this 
                subsection, for Federal Direct Unsubsidized Stafford 
                Loans issued to graduate or professional students, for 
                which the first disbursement is made on or after July 1, 
                2013, 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 plus 3.6 
                      percent; or
                          ``(ii) 9.5 percent.
                    ``(C) PLUS loans.--Notwithstanding the preceding 
                paragraphs of this subsection, for Federal Direct PLUS 
                Loans, for which the first disbursement is made on or 
                after July 1, 2013, 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 plus 4.6 
                      percent; or
                          ``(ii) 10.5 percent.
                    ``(D) 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, 2013, shall bear interest 
                at an annual rate on the unpaid principal balance of the 
                loan that is equal to the weighted average of the 
                interest rates on the loans consolidated, rounded to the 
                nearest higher one-eighth of one percent.
                    ``(E) <<NOTE: Determination. Federal Register, 
                publication.>>  Consultation.--The Secretary shall 
                determine the applicable rate of interest under this 
                paragraph 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.
                    ``(F) Rate.--The applicable rate of interest 
                determined under this paragraph for a Federal Direct 
                Stafford Loan, a Federal Direct Unsubsidized Stafford 
                Loan, or a Federal Direct PLUS Loan shall be fixed for 
                the period of the loan.''.

    (b) <<NOTE: 20 USC 1087e note.>>  Effective Date.--The amendments 
made by subsection (a) shall take effect as if enacted on July 1, 2013.
SEC. 3. BUDGETARY EFFECTS.

    (a) Paygo Scorecard.--The budgetary effects of this Act shall not be 
entered on either PAYGO scorecard maintained pursuant to section 4(d) of 
the Statutory Pay- As-You-Go Act of 2010.
    (b) Senate Paygo Scorecard.--The budgetary effects of this Act shall 
not be entered on any PAYGO scorecard maintained for purposes of section 
201 of S. Con. Res. 21 (110th Congress).
SEC. 4. STUDY ON THE ACTUAL COST OF ADMINISTERING THE FEDERAL 
                    STUDENT LOAN PROGRAMS.

    Not <<NOTE: Deadline.>>  later than 120 days after the date of 
enactment of this Act, the Comptroller General of the United States 
shall--

[[Page 127 STAT. 508]]

            (1) complete a study that determines the actual cost to the 
        Federal Government of carrying out the Federal student loan 
        programs authorized under title IV of the Higher Education Act 
        of 1965 (20 U.S.C. 1070 et seq.), which shall--
                    (A) provide estimates relying on accurate 
                information based on past, current, and projected data 
                as to the appropriate index and mark-up rate for the 
                Federal Government's cost of borrowing that would allow 
                the Federal Government to effectively administer and 
                cover the cost of the Federal student programs 
                authorized under title IV of the Higher Education Act of 
                1965 (20 U.S.C. 1070 et seq.) under the scoring rules 
                outlined in the Federal Credit Reform Act of 1990 (2 
                U.S.C. 661 et seq.);
                    (B) provide the information described in this 
                section in a way that separates out administrative 
                costs, interest rate, and other loan terms and 
                conditions; and
                    (C) set forth clear recommendations to the relevant 
                authorizing committees of Congress as to how future 
                legislation can incorporate the results of the study 
                described in this section to allow for the 
                administration of the Federal student loan programs 
                authorized under title IV of the Higher Education Act of 
                1965 (20 U.S.C. 1070 et seq.) without generating any 
                additional revenue to the Federal Government except 
                revenue that is needed to carry out such programs; and
            (2) <<NOTE: Reports.>>  prepare and submit a report to the 
        Committee on Health, Education, Labor, and Pensions of the 
        Senate and the Committee on Education and the Workforce of the 
        House of Representatives setting forth the conclusions of the 
        study described in this section in such a manner that the 
        recommendations included in the report can inform future 
        reauthorizations of the Higher Education Act of 1965 (20 U.S.C. 
        1001 et seq.).

    Approved August 9, 2013.

LEGISLATIVE HISTORY--H.R. 1911:
---------------------------------------------------------------------------

HOUSE REPORTS: No. 113-82, Pt. 1 (Comm. on Education and the Workforce).
CONGRESSIONAL RECORD, Vol. 159 (2013):
            May 23, considered and passed House.
            July 24, considered and passed Senate, amended.
            July 31, House concurred in Senate amendment.

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