I 

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. 

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 ‘‘Smarter Solutions for 

5 Students Act’’. 

6 SEC. 2. INTEREST RATES. 

7 Section 455(b) of the Higher Education Act of 1965 

8 (20 U.S.C. 1087e(b)) is amended— 

9 (1) in paragraph (7)— 


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1 (A) in the paragraph heading, by inserting 

2 ‘‘, AND BEFORE JULY 1, 2013’’ after ‘‘2006’’; 

3 (B) in subparagraph (A), by inserting 

4 ‘‘and before July 1, 2013,’’ after ‘‘2006,’’; 

5 (C) in subparagraph (B), by inserting 

6 ‘‘and before July 1, 2013,’’ after ‘‘2006,’’; and 

7 (D) in subparagraph (C), by inserting 

8 ‘‘and before July 1, 2013,’’ after ‘‘2006,’’; 

9 (2) by redesignating paragraphs (8) and (9) as 

10 paragraphs (9) and (10), respectively; and 

11 (3) by inserting after paragraph (7), the fol12 lowing: 

13 ‘‘(8) INTEREST RATE PROVISION FOR NEW

14 LOANS ON OR AFTER JULY 1, 2013.— 

15 ‘‘(A) RATES FOR FDSL AND FDUSL.—Not16 withstanding the preceding paragraphs of this 

17 subsection, for Federal Direct Stafford Loans 

18 and Federal Direct Unsubsidized Stafford 

19 Loans for which the first disbursement is made 

20 on or after July 1, 2013, the applicable rate of 

21 interest shall, during any 12-month period be22 ginning on July 1 and ending on June 30, be 

23 determined on the preceding June 1 and be 

24 equal to— 


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1 ‘‘(i) the high-yield 10-year Treasury 

2 notes auctioned at the final auction held 

3 prior to such June 1; plus 

4 ‘‘(ii) 2.5 percent, 

5 except that such rate shall not exceed 8.5 per6 cent. 

7 ‘‘(B) PLUS LOANS.—Notwithstanding the 

8 preceding paragraphs of this subsection, for any 

9 Federal Direct PLUS Loan for which the first 

10 disbursement is made on or after July 1, 2013, 

11 the applicable rate of interest shall, during any 

12 12-month period beginning on July 1 and end13 ing on June 30, be determined on the preceding 

14 June 1 and be equal to— 

15 ‘‘(i) the high-yield 10-year Treasury 

16 notes auctioned at the final auction held 

17 prior to such June 1; plus 

18 ‘‘(ii) 4.5 percent, 

19 except that such rate shall not exceed 10.5 per20 cent. 

21 ‘‘(C) CONSOLIDATION LOANS.—Notwith22 standing the preceding paragraphs of this sub23 section, any Federal Direct Consolidation Loan 

24 for which the application is received on or after 

25 July 1, 2013, shall bear interest at an annual 


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1 rate on the unpaid principal balance of the loan 

2 that is equal to the weighted average of the in3 terest rates on the loans consolidated, rounded 

4 to the nearest higher one-eighth of one per5 cent.’’. 

6 SEC. 3. BUDGETARY EFFECTS. 

7 (a) PAYGO SCORECARD.—The budgetary effects of 

8 this Act shall not be entered on either PAYGO scorecard 

9 maintained pursuant to section 4(d) of the Statutory Pay10 As-You-Go Act of 2010. 

11 (b) SENATE PAYGO SCORECARD.—The budgetary ef12 fects of this Act shall not be entered on any PAYGO score13 card maintained for purposes of section 201 of S. Con. 

14 Res. 21 (110th Congress). 

Æ 


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