Bipartisan Student Loan Certainty Act

Summary: Bipartisan Student Loan Certainty Act - Amends title IV (Student Assistance) of the Higher Education Act of 1965 to set the annual interest rate on Direct Loans at the bond equivalent rate on 91-day Treasury bills plus: (1) 1.85% for Direct Stafford Loans and Direct Unsubsidized Stafford Loans for undergraduate students, (2) 3.4% for Direct Unsubsidized Stafford Loans for graduate students, and (3) 4.4% for Direct PLUS Loans.  Fixes the interest rate on such loans for the period of the loan. Sets the annual interest rate on the unpaid principle balance of Direct Consolidation Loans at the lesser of: (1) the weighted average of the interest rates on the loans consolidated, rounded to the nearest higher one-eighth of 1%; or (2) 8.25%.  Makes these interest rate provisions applicable to loans first disbursed on or after July 1, 2013. Requires institutions of higher education (IHEs) to provide student borrowers of title IV loans, prior to or at the time of their departure from school, with information regarding: (1) their options for loan consolidation; (2) the income-based repayment plan, including information about capped monthly payments and loan forgiveness under the plan; and (3) Direct Consolidation Loans.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Bipartisan Student Loan Certainty 
Act''.

SEC. 2. INTEREST RATES.

    (a) Interest Rate Provisions and Disclosures.--Section 455 of the 
Higher Education Act of 1965 (20 U.S.C. 1087e) is amended--
            (1) in subsection (b)(7)(C), by inserting ``and before July 
        1, 2013,'' after`` July 1, 2006,''; and
            (2) by adding at the end of the following:
                    ``(E) Interest rate provisions for new loans on or 
                after july 1, 2013.--
                            ``(i) Federal direct stafford loans, 
                        federal direct unsubsidized stafford loans, and 
                        federal direct plus loans.--
                                    ``(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 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--
                                            ``(aa) the bond equivalent 
                                        rate of 10-year Treasury bills 
                                        auctioned at the final auction 
                                        held prior to such June 1; plus
                                            ``(bb)(AA) 1.85 percent for 
                                        Federal Direct Stafford Loans 
                                        and Federal Direct Unsubsidized 
                                        Stafford Loans for 
                                        undergraduate students;
                                            ``(BB) 3.4 percent for 
                                        Federal Direct Unsubsidized 
                                        Stafford Loans for graduate 
                                        students; and
                                            ``(CC) 4.4 percent for 
                                        Federal Direct PLUS Loans.
                                    ``(II) Consultation.--The Secretary 
                                shall determine the applicable rates of 
                                interest under this clause after 
                                consultation with the Secretary of the 
                                Treasury and shall publish such rate in 
                                the Federal Register on or before June 
                                5 preceding the award year for which 
                                the rate is determined.
                                    ``(III) Rate.--The applicable rate 
                                of interest determined under subclause 
                                (I) 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.
                            ``(ii) Consolidation loans.--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 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) 8.25 percent.''.
    (b) Exit Counseling Requirement.--Section 485(b)(1)(A)(vii) is 
amended--
            (1) by redesignating subclauses (III) and (IV) as 
        subclauses (VI) and (VII), respectively; and
            (2) by inserting after subclause (II) the following:
                                    ``(III) the borrower's options for 
                                loan consolidation;
                                    ``(IV) information about the 
                                income-based repayment plan under 
                                section 493C, including information 
                                about capped monthly payments and loan 
                                forgiveness under such plan;
                                    ``(V) information about Federal 
                                Direct Consolidation Loans, which for 
                                applications received on or after July 
                                1, 2013, have a maximum interest rate 
                                of 8.25 percent, as described under 
                                section 455(b)(7)(E)(ii)''.

SEC. 3. RULE OF CONSTRUCTION.

    Nothing in this Act shall be construed to provide the Secretary of 
Education with the authority to require, or promulgate regulations 
requiring, new counseling not otherwise required by section 2, and the 
amendments made by such section, or the Higher Education Act of 1965 
(20 U.S.C. 1001 et seq.).

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.