II 

112TH CONGRESS 

2D SESSION S. 3266 

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

new student loans. 

IN THE SENATE OF THE UNITED STATES 

JUNE 6, 2012 

Mr. COBURN (for himself and Mr. BURR) introduced the following bill; which 

was read twice and referred to the Committee on Health, Education, 

Labor, and Pensions 

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’’. 

6 SEC. 2. INTEREST RATES UNDER THE DIRECT LOAN PRO7 GRAM. 

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

9 1965 (20 U.S.C. 1087e(b)(7)) is amended by adding at 

10 the end the following: 

mstockstill on DSK4VPTVN1PROD with BILLS

2 

•S 3266 IS

1 ‘‘(E) INTEREST RATE PROVISION FOR NEW

2 LOANS AFTER JULY 1, 2012.— 

3 ‘‘(i) IN GENERAL.—Notwithstanding 

4 the preceding paragraphs of this sub5 section or subparagraph (A) or (B), for 

6 Federal Direct Stafford Loans, Federal 

7 Direct Unsubsidized Stafford Loans, and 

8 any Federal Direct PLUS Loan, for which 

9 the first disbursement is made on or after 

10 July 1, 2012, the applicable rate of inter11 est shall, during any 12-month period be12 ginning on July 1 and ending on June 30, 

13 be determined on the preceding June 1 

14 and be equal to— 

15 ‘‘(I) the bond equivalent rate of 

16 10-year Treasury bills auctioned at 

17 the final auction held prior to such 

18 June 1; plus 

19 ‘‘(II) 3.0 percent. 

20 ‘‘(ii) CONSULTATION.—The Secretary 

21 shall determine the applicable rate of inter22 est under this subparagraph after con23 sultation with the Secretary of the Treas24 ury and shall publish such rate in the Fedmstockstill on DSK4VPTVN1PROD with BILLS

3 

•S 3266 IS

1 eral Register as soon as practicable after 

2 the date of determination. 

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

4 interest determined under clause (i) for a 

5 Federal Direct Stafford Loan, a Federal 

6 Direct Unsubsidized Stafford Loan, or a 

7 Federal Direct PLUS Loan shall be fixed 

8 for the life of the Loan.’’. 

9 SEC. 3. SAVINGS FOR DEFICIT REDUCTION. 

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

11 date of enactment of this Act, the Comptroller General 

12 of the United States shall determine the savings to the 

13 Federal Government resulting from the amendment made 

14 by section 2. 

15 (b) AMOUNT TO BE USED FOR DEFICIT REDUC16 TION.—Any savings determined under subsection (a) shall 

17 be transferred to the Treasury for deficit reduction. 

18 SEC. 4. DETERMINATION OF BUDGETARY EFFECTS. 

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

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

21 shall be determined by reference to the latest statement 

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

23 Act, submitted for printing in the Congressional Record 

24 by the Chairman of the Senate Budget Committee, promstockstill on DSK4VPTVN1PROD with BILLS

4 

•S 3266 IS

1 vided that such statement has been submitted prior to the 

2 vote on passage. 

Æ 

mstockstill on DSK4VPTVN1PROD with BILLS