Bipartisan Student Loan Certainty Act of 2013

Summary: Bipartisan Student Loan Certainty Act of 2013 - (Sec. 2) Amends title IV (Student Assistance) of the Higher Education Act of 1965 (HEA) to set the annual interest rate on Direct Stafford loans and Direct Unsubsidized Stafford loans issued to undergraduate students at the rate on high-yield 10-year Treasury notes plus 2.05%, but caps that rate at 8.25%. Sets the annual interest rate on Direct Unsubsidized Stafford loans issued to graduate or professional students at the rate on high-yield 10-year Treasury notes plus 3.6%, but caps that rate at 9.5%. Sets the annual interest rate on Direct PLUS loans at the rate on high-yield 10-year Treasury notes plus 4.6%, but caps that rate at 10.5%. Limits the applicability of the preceding provisions to loans first disbursed on or after July 1, 2013. Fixes the interest rate on Direct Stafford loans, Direct Unsubsidized Stafford loans, and Direct PLUS loans for the period of the loan. Sets the annual interest rate on Direct Consolidation loans for which an application is received on or after July 1, 2013, at the weighted average of the interest rates on the loans consolidated, rounded to the nearest higher one-eighth of 1%. (Sec. 3) Provides that the budgetary effects of this Act shall not be entered on specified PAYGO scorecards. (Sec. 4) Directs the Comptroller General (GAO) to conduct a study and report to Congress on the actual cost to the federal government of carrying out the federal student loan programs authorized under title IV of the HEA.

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) 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.
            ``(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) 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) 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 later than 120 days after the date of enactment of this Act, 
the Comptroller General of the United States shall--
        (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) 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.).

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.