I 

116TH CONGRESS 

1ST SESSION H. R. 4749 

To provide temporary authority to the Secretary of Education to reissue 

certain student loans to reduce interest rates paid by borrowers, and 

for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

OCTOBER 18, 2019 

Mr. CLAY introduced the following bill; which was referred to the Committee 

on Education and Labor 

A BILL 

To provide temporary authority to the Secretary of Education to reissue certain student loans to reduce interest 

rates paid by borrowers, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Student Loan Relief 

5 Act of 2019’’. 


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1 SEC. 2. TEMPORARY AUTHORITY TO REDUCE STUDENT 

2 LOAN INTEREST RATES. 

3 Part D of title IV of the Higher Education Act of 

4 1965 (20 U.S.C. 1087a et seq.) is amended by inserting 

5 after section 459B the following new section: 

6 ‘‘SEC. 459C. TEMPORARY AUTHORITY TO REISSUE STUDENT 

7 LOANS TO REDUCE INTEREST RATES. 

8 ‘‘(a) TEMPORARY AUTHORITY TO REISSUE STUDENT

9 LOANS TO REDUCE INTEREST RATES.—Notwithstanding 

10 section 455(b)(9)(C) or any other provision of this Act, 

11 for the 10-year period beginning on the date of enactment 

12 of the Student Loan Relief Act of 2019, the Secretary is 

13 authorized to reissue a loan which was made under this 

14 part on or after the date that was 20 years before the 

15 date of enactment of the Student Loan Relief Act of 2019, 

16 and before the date that is 10 years after such date of 

17 enactment, in order to permit the borrower to obtain a 

18 reduced interest rate in accordance with this section. 

19 ‘‘(b) ELIGIBILITY.— 

20 ‘‘(1) IN GENERAL.—The Secretary shall reissue 

21 a loan under this section for a borrower who— 

22 ‘‘(A) has an outstanding balance on one or 

23 more loans made under this part; and 

24 ‘‘(B) submits to the Secretary, at such 

25 time and in such manner as the Secretary may 

26 require, a completed application for the loan to 


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1 be reissued with an interest rate reduction in 

2 accordance with this section. 

3 ‘‘(2) LIMITATION.—If a borrower has been con4 victed of, or has pled nolo contendere or guilty to, 

5 a crime involving fraud in obtaining funds under 

6 this title, the borrower shall not be eligible to have 

7 a loan reissued under this section unless the bor8 rower has completed the repayment of such funds to 

9 the Secretary, or to the holder in the case of a loan 

10 under this title obtained by fraud. 

11 ‘‘(c) REDUCED INTEREST RATE.—For each loan re12 issued by the Secretary under this section on or after the 

13 date of enactment of the Student Loan Relief Act of 2019, 

14 and before the date that is 10 years after such date of 

15 enactment, the applicable rate of interest shall, for loans 

16 reissued during any 12-month period beginning on July 

17 1 and ending on June 30, be determined on the preceding 

18 June 1 and be a rate equal to the high yield of the 10- 

19 year Treasury note auctioned at the final auction held 

20 prior to such June 1. 

21 ‘‘(d) TERMS OF REISSUANCE.—A loan reissued by 

22 the Secretary under this section shall— 

23 ‘‘(1) have the same terms (other than applicable 

24 rate of interest) as the terms of the loan before 

25 reissuance, including the terms related to eligibility 


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1 for consolidation of such loan in accordance with 

2 this title; 

3 ‘‘(2) have an applicable reduced rate of interest 

4 on the loan calculated in accordance with subsection 

5 (c), and such rate shall be fixed for the remaining 

6 period of the loan; 

7 ‘‘(3) not require the execution of a new promis8 sory note and shall not result in the extension of the 

9 duration of the note; and 

10 ‘‘(4) not be reissued more than one time under 

11 this section. 

12 ‘‘(e) DUTIES OF THE SECRETARY.—As soon as prac13 ticable after the date of enactment of the Student Loan 

14 Relief Act of 2019, the Secretary shall take such steps 

15 as may be necessary to— 

16 ‘‘(1) notify borrowers of the availability of the 

17 program authorized under this section, and the ter18 mination date for such program; and 

19 ‘‘(2) allow borrowers to easily determine wheth20 er reissuance of a loan under this section will reduce 

21 the interest rates and overall costs of the out22 standing loans of the borrower, before the borrower 

23 applies for such reissuance.’’. 

Æ 


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