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[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1911 Introduced in House (IH)]

113th CONGRESS
  1st Session
                                H. R. 1911

 To amend the Higher Education Act of 1965 to establish interest rates 
              for new loans made on or after July 1, 2013.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                              May 9, 2013

  Mr. Kline (for himself and Ms. Foxx) introduced the following bill; 
which was referred to the Committee on Education and the Workforce, and 
    in addition to the Committee on the Budget, for a period to be 
subsequently determined by the Speaker, in each case for consideration 
  of such provisions as fall within the jurisdiction of the committee 
                               concerned

_______________________________________________________________________

                                 A BILL

 
 To amend the Higher Education Act of 1965 to establish interest rates 
              for new loans made on or after July 1, 2013.

    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 ``Smarter Solutions for Students 
Act''.

SEC. 2. 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 ``2006'';
                    (B) in subparagraph (A), by inserting ``and before 
                July 1, 2013,'' after ``2006,'';
                    (C) in subparagraph (B), by inserting ``and before 
                July 1, 2013,'' after ``2006,''; and
                    (D) in subparagraph (C), by inserting ``and before 
                July 1, 2013,'' after ``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 provision for new loans on or after 
        july 1, 2013.--
                    ``(A) Rates for fdsl and fdusl.--Notwithstanding 
                the preceding paragraphs of this subsection, for 
                Federal Direct Stafford Loans and Federal Direct 
                Unsubsidized Stafford Loans for which the first 
                disbursement is made on or after July 1, 2013, the 
                applicable rate of interest shall, 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--
                            ``(i) the high-yield 10-year Treasury notes 
                        auctioned at the final auction held prior to 
                        such June 1; plus
                            ``(ii) 2.5 percent,
                except that such rate shall not exceed 8.5 percent.
                    ``(B) PLUS loans.--Notwithstanding the preceding 
                paragraphs of this subsection, for any Federal Direct 
                PLUS Loan for which the first disbursement is made on 
                or after July 1, 2013, the applicable rate of interest 
                shall, 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--
                            ``(i) the high-yield 10-year Treasury notes 
                        auctioned at the final auction held prior to 
                        such June 1; plus
                            ``(ii) 4.5 percent,
                except that such rate shall not exceed 10.5 percent.
                    ``(C) 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.''.

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).
                                 <all>
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