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[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 10159 Introduced in House (IH)]

<DOC>

118th CONGRESS
  2d Session
                               H. R. 10159

To amend the Higher Education Act of 1965 to lower the interest rate on 
                  Federal student loans to 1 percent.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                           November 18, 2024

  Mr. Lawler introduced the following bill; which was referred to the 
                Committee on Education and the Workforce

_______________________________________________________________________

                                 A BILL

 
To amend the Higher Education Act of 1965 to lower the interest rate on 
                  Federal student loans to 1 percent.

    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 ``Affordable Loans for Students Act''.

SEC. 2. PROGRAM AUTHORITY.

    Section 451(a) of the Higher Education Act of 1965 (20 U.S.C. 
1087a(a)) is amended--
            (1) by striking ``and (2)'' and inserting ``(2)''; and
            (2) by inserting ``; and (3) to make loans under section 
        460A(b)'' after ``section 459A''.

SEC. 3. PROGRAM FOR THE LOAN MODIFICATION OF ELIGIBLE FEDERAL LOANS 
              HELD BY THE SECRETARY, AND REFINANCING OF OTHER FEDERAL 
              STUDENT LOANS.

    (a) Loan Modification and Refinancing.--Part D of title IV of the 
Higher Education Act of 1965 (20 U.S.C. 1087a et seq.) is amended by 
adding at the end the following:

``SEC. 460A. PROGRAM FOR THE LOAN MODIFICATION OF ELIGIBLE FEDERAL 
              LOANS HELD BY THE SECRETARY, AND REFINANCING OF OTHER 
              FEDERAL STUDENT LOANS.

    ``(a) Federal Direct Loan Modification.--The Secretary shall 
establish and implement, with respect to each borrower of an eligible 
Federal loans held by the Secretary, procedures to modify, without any 
action from the borrower, the terms of such loan so that beginning on 
the first July 1 after the date of enactment of the Affordable Loans 
for Students Act, the applicable rate of interest shall be 1.0 percent 
on the unpaid principal balance of the loan.
    ``(b) Refinancing Eligible Federal Loans Not Held by the Secretary 
as Federal Direct Consolidation Loans.--
            ``(1) In general.--The Secretary shall establish and 
        implement, with respect to each borrower of an eligible Federal 
        loan not held by the Secretary, procedures to refinance such 
        loan in accordance with the requirements of paragraph (2) and 
        without any action from the borrower, except that such borrower 
        may opt out of such procedures with respect to such loan.
            ``(2) Procedures.--In refinancing an eligible Federal loan 
        not held by the Secretary with respect to a borrower of such 
        loan, the Secretary shall carry out the following:
                    ``(A) The Secretary shall make a Federal Direct 
                Consolidation Loan under this subsection, in an amount 
                equal to the sum of the unpaid principal, accrued 
                unpaid interest, and late charges of the eligible 
                Federal loan not held by the Secretary.
                    ``(B) The Secretary shall pay the proceeds of such 
                Federal Direct Consolidation Loan to the holder of the 
                eligible Federal non-direct loan, in order to discharge 
                the borrower from any remaining obligation with respect 
                to such eligible Federal loan not held by the 
                Secretary.
            ``(3) Terms and conditions of refinanced loans.--
                    ``(A) In general.--A Federal Direct Consolidation 
                Loan made under this subsection shall have the same 
                terms and conditions as a Federal Direct Consolidation 
                Loan that was not made under this subsection, except--
                            ``(i) that the Secretary may adjust such 
                        terms and conditions as necessary to enable the 
                        borrower to access loan forgiveness or other 
                        benefits available to the borrower under the 
                        loan before refinancing under this subsection, 
                        in any case where such benefits are more 
                        generous than provided under a Federal Direct 
                        Consolidation Loan; and
                            ``(ii) as otherwise provided in this 
                        subsection.
                    ``(B) No origination fees.--Notwithstanding section 
                455(c), the Secretary may not charge a borrower of a 
                loan made under this subsection an origination fee for 
                such loan.
                    ``(C) Interest rate.--The applicable rate of 
                interest for a loan made under this subsection shall be 
                1.0 percent on the unpaid principal balance of the 
                loan.
                    ``(D) No automatic extension of repayment period.--
                A loan made under this subsection shall not result in 
                the extension of the duration of the repayment period 
                of the original loan, and the borrower shall retain the 
                same repayment term that was in effect on the original 
                loan. Nothing in this paragraph shall be construed to 
                prevent a borrower from electing a different repayment 
                plan at any time in accordance with section 455(d)(3).
                    ``(E) Rule of construction.--Nothing in this 
                section shall be construed to--
                            ``(i) prohibit a borrower of an eligible 
                        Federal loan not held by the Secretary from 
                        consolidating such a loan with any other loan 
                        eligible for consolidation under this section 
                        into a single consolidation loan under this 
                        section; or
                            ``(ii) require such a borrower to 
                        consolidate any such loan with any other loan 
                        eligible for consolidation under this section 
                        into a single consolidation loan under this 
                        section.
    ``(c) Report.--Not later than 180 days after the second July 1 
after the date of enactment of the Affordable Loans for Students Act, 
and on an annual basis thereafter, the Secretary shall submit a report 
to the authorizing committees that includes--
            ``(1) the total number of borrowers whose loans have been 
        modified or refinanced under this section during the preceding 
        year; and
            ``(2) the number of such borrowers who are delinquent in 
        making payments on such a loan.
    ``(d) Definitions.--In this section:
            ``(1) Eligible federal loan held by the secretary.--The 
        term `eligible Federal loan held by the Secretary' means--
                    ``(A) any loan made under this part, and first 
                disbursed before the first July 1 after the date of 
                enactment of the Affordable Loans for Students Act;
                    ``(B) any loan made, insured, or guaranteed under 
                part B, and which is held by the Secretary;
                    ``(C) any loan made under part E, and which is held 
                by the Secretary; and
                    ``(D) any loan made under subpart I of part A of 
                title VII of the Public Health Service Act (42 U.S.C. 
                292 et seq.), and which is held by the Secretary.
            ``(2) Eligible federal loan not held by the secretary.--The 
        term `eligible Federal loan not held by the Secretary' means 
        any loan--
                    ``(A) made, insured, or guaranteed under part B, 
                and which is not held by the Secretary;
                    ``(B) made under part E, and which is not held by 
                the Secretary; and
                    ``(C) made under--
                            ``(i) subpart I of part A of title VII of 
                        the Public Health Service Act (42 U.S.C. 292 et 
                        seq.), and which is not held by the Secretary;
                            ``(ii) subpart II of part A of title VII of 
                        the Public Health Service Act (42 U.S.C. 292q 
                        et seq.); or
                            ``(iii) part E of title VIII of the Public 
                        Health Service Act (42 U.S.C. 297a et seq.).
            ``(3) Original loan.--The term `original loan', used with 
        respect to a Federal Direct Consolidation Loan made under 
        subsection (b), means a loan for which a borrower's liability 
        is discharged by such Federal Direct Consolidation Loan.''.
    (d) Conforming Amendments.--The Higher Education Act of 1965 (20 
U.S.C. 1001 et seq.) is amended--
            (1) in section 428C(a)(3)(B)(i)(V) (20 U.S.C. 1078-
        3(3)(B)(i)(V))--
                    (A) by striking the period at the end of item (cc) 
                and inserting a semicolon;
                    (B) by striking the period at the end of item (dd) 
                and inserting ``; or''; and
                    (C) by adding at the end the following:
                                            ``(ee) for the purpose of 
                                        obtaining a Federal Direct 
                                        Consolidation Loan under 
                                        section 460A(b).''.

SEC. 4. APPLICABLE RATES OF INTEREST FOR LOANS MADE ON OR AFTER THE 
              FIRST JULY 1 AFTER THE DATE OF ENACTMENT OF THE 
              AFFORDABLE LOANS FOR STUDENTS ACT.

    Section 455(b)(8) of the Higher Education Act of 1965 (20 U.S.C. 
1087e(b)(8)) is amended--
            (1) in the paragraph heading, by inserting ``and before the 
        first july 1 after the date of enactment of the affordable 
        loans for students act '' after ``July 1, 2013'';
            (2) in subparagraph (A), by inserting ``and before the 
        first July 1 after the date of enactment of the Affordable 
        Loans for Students Act'' after ``July 1, 2013'';
            (3) in subparagraph (B), by inserting ``and before the 
        first July 1 after the date of enactment of the Affordable 
        Loans for Students Act'' after ``July 1, 2013'';
            (4) in subparagraph (C), by inserting ``and before the 
        first July 1 after the date of enactment of the Affordable 
        Loans for Students Act'' after ``July 1, 2013'';
            (5) in subparagraph (D), by inserting ``and before the 
        first July 1 after the date of enactment of the Affordable 
        Loans for Students Act'' after ``July 1, 2013'';
            (6) by redesignating subparagraph (F) as subparagraph (G); 
        and
            (7) by inserting after subparagraph (E) the following:
                    ``(F) New loans on or after the first july 1 after 
                the date of enactment of the affordable loans for 
                students act.--Notwithstanding the preceding 
                subparagraphs of this paragraph, for Federal Direct 
                Stafford Loans, Federal Direct Unsubsidized Stafford 
                Loans, Federal Direct PLUS Loans, and Federal Direct 
                Consolidation Loans for which the first disbursement is 
                made, or the application is received, on or after the 
                first July 1 after the date of enactment of the 
                Affordable Loans for Students Act, the applicable rate 
                of interest shall be 1.0 percent on the unpaid 
                principal balance of the loan.''.
                                 <all>
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