II 

Calendar No. 76 

113TH CONGRESS 

1ST SESSION S. 1003 

To amend the Higher Education Act of 1965 to reset interest rates for 

new student loans. 

IN THE SENATE OF THE UNITED STATES 

MAY 21, 2013 

Mr. COBURN (for himself, Mr. BURR, Mr. ALEXANDER, and Mr. ISAKSON) 

introduced the following bill; which was read the first time 

MAY 22, 2013 

Read the second time and placed on the calendar 

A BILL 

To amend the Higher Education Act of 1965 to reset interest 

rates for new student loans. 

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 ‘‘Comprehensive Stu5 dent Loan Protection Act’’. 


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•S 1003 PCS

1 SEC. 2. INTEREST RATES UNDER THE DIRECT LOAN PRO2 GRAM. 

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

4 1965 (20 U.S.C. 1087e(b)(7)) is amended by adding at 

5 the end the following: 

6 ‘‘(E) INTEREST RATE PROVISION FOR NEW

7 LOANS AFTER JULY 1, 2013.— 

8 ‘‘(i) IN GENERAL.—Notwithstanding 

9 the preceding paragraphs of this sub10 section or subparagraph (A) or (B), for 

11 Federal Direct Stafford Loans, Federal 

12 Direct Unsubsidized Stafford Loans, and 

13 any Federal Direct PLUS Loan, for which 

14 the first disbursement is made on or after 

15 July 1, 2013, the applicable rate of inter16 est shall, during any 12-month period be17 ginning on July 1 and ending on June 30, 

18 be determined on the preceding June 1 

19 and be equal to— 

20 ‘‘(I) the bond equivalent rate of 

21 10-year Treasury bills auctioned at 

22 the final auction held prior to such 

23 June 1; plus 

24 ‘‘(II) 3.0 percent. 

25 ‘‘(ii) CONSULTATION.—The Secretary 

26 shall determine the applicable rate of interVerDate Mar 15 2010 23:47 May 22, 2013 Jkt 029200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S1003.PCS S1003

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•S 1003 PCS

1 est under this subparagraph after con2 sultation with the Secretary of the Treas3 ury and shall publish such rate in the Fed4 eral Register as soon as practicable after 

5 the date of determination. 

6 ‘‘(iii) RATE.—The applicable rate of 

7 interest determined under clause (i) for a 

8 Federal Direct Stafford Loan, a Federal 

9 Direct Unsubsidized Stafford Loan, or a 

10 Federal Direct PLUS Loan shall be fixed 

11 for the life of the Loan.’’. 

12 SEC. 3. SAVINGS FOR DEFICIT REDUCTION. 

13 (a) IN GENERAL.—Not later than 1 year after the 

14 date of enactment of this Act, the Comptroller General 

15 of the United States shall determine the savings to the 

16 Federal Government resulting from the amendment made 

17 by section 2. 

18 (b) AMOUNT TO BE USED FOR DEFICIT REDUC19 TION.—Any savings determined under subsection (a) shall 

20 be transferred to the Treasury for deficit reduction. 

21 SEC. 4. DETERMINATION OF BUDGETARY EFFECTS. 

22 The budgetary effects of this Act, for the purpose of 

23 complying with the Statutory Pay-As-You-Go Act of 2010, 

24 shall be determined by reference to the latest statement 

25 titled ‘‘Budgetary Effects of PAYGO Legislation’’ for this 


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1 Act, submitted for printing in the Congressional Record 

2 by the Chairman of the Senate Budget Committee, pro3 vided that such statement has been submitted prior to the 

4 vote on passage. 


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Calendar No. 76 

113TH CONGRESS 

1ST SESSION S. 1003 

A BILL 

To amend the Higher Education Act of 1965 to 

reset interest rates for new student loans. 

MAY 22, 2013 

Read the second time and placed on the calendar 


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