I 

111TH CONGRESS 

2D SESSION H. R. 6374 

To amend the Higher Education Act of 1965 to provide for the refinancing 

of certain private education loans for physicians practicing primary care 

medicine. 

IN THE HOUSE OF REPRESENTATIVES 

SEPTEMBER 29, 2010 

Mr. PAYNE introduced the following bill; which was referred to the Committee 

on Education and Labor 

A BILL 

To amend the Higher Education Act of 1965 to provide 

for the refinancing of certain private education loans 

for physicians practicing primary care medicine. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. PRIVATE EDUCATION LOAN REFINANCING. 

4 Title IV of the Higher Education Act of 1965 (20 

5 U.S.C. 1070 et seq.) is amended by adding at the end 

6 the following: 


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1 ‘‘PART J—PRIVATE EDUCATION LOAN 

2 REFINANCING 

3 ‘‘SEC. 499A. PRIVATE EDUCATION LOAN REFINANCING FOR 

4 PHYSICIANS. 

5 ‘‘(a) IN GENERAL.— 

6 ‘‘(1) AUTHORITY.—The Secretary shall carry 

7 out a Physician Private Education Loan Refinancing 

8 Program in accordance with this section. 

9 ‘‘(2) AVAILABILITY OF FUNDS.—There are 

10 hereby made available, in accordance with the provi11 sions of this section, such sums as may be necessary 

12 to make loans under this section through refinancing 

13 private education loans to all individuals eligible to 

14 receive refinancing under this section. 

15 ‘‘(3) PRIVATE EDUCATION LOAN.—In this sec16 tion, the term ‘private education loan’ has the mean17 ing given the term ‘qualified education loan’ in sec18 tion 221 of the Internal Revenue Code, but does not 

19 include any loan made under this title or under the 

20 Public Health Service Act. 

21 ‘‘(b) ELIGIBLE BORROWER.—An individual shall be 

22 eligible to receive private education loan refinancing under 

23 this section if the individual meets the following require24 ments: 

25 ‘‘(1) The individual is participating in a resi26 dency program, approved by the Accreditation CounVerDate Mar 15 2010 03:01 Oct 14, 2010 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H6374.IH H6374

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1 cil for Graduate Medical Education or the American 

2 Osteopathic Association, at a hospital in one of the 

3 following specialties: 

4 ‘‘(A) Family medicine. 

5 ‘‘(B) Obstetrics/gynecology. 

6 ‘‘(C) General internal medicine. 

7 ‘‘(D) Gerontology. 

8 ‘‘(E) General pediatrics. 

9 ‘‘(F) General psychiatry. 

10 ‘‘(2) The individual is not enrolled, on a half11 time or more basis, in an eligible institution under 

12 this title (as such term is defined in section 435(a)). 

13 ‘‘(3) The individual is indebted on at least 1 

14 private education loan for the period of enrollment 

15 preceding their residency program. 

16 ‘‘(4) The individual is not in default on a loan 

17 made, insured, or guaranteed under this title. 

18 ‘‘(5) The individual has not previously obtained 

19 refinancing under this section. 

20 ‘‘(c) REFINANCING UNDER THE PHYSICIAN PRIVATE

21 EDUCATION LOAN REFINANCING PROGRAM.— 

22 ‘‘(1) IN GENERAL.—The Secretary shall refi23 nance a private education loan in accordance with 

24 this section for an individual who is eligible for pri25 vate education loan refinancing pursuant to subVerDate Mar 15 2010 03:01 Oct 14, 2010 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H6374.IH H6374

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1 section (b). Such refinancing loans shall have the 

2 same terms and conditions as a Federal Direct Con3 solidation Loan, except as provided in paragraphs 

4 (4) and (5). 

5 ‘‘(2) TYPES OF LOANS ELIGIBLE TO BE REFI6 NANCED.—A private education loan is eligible to be 

7 refinanced under this section if the loan was in8 curred after July 1, 2008. 

9 ‘‘(3) LOAN LIMITS.—The maximum amount of 

10 private education loans that may be refinanced by 

11 an individual under this section is an amount equal 

12 to the sum of unpaid principal, accrued interest, and 

13 late charges of all private education loans eligible 

14 under paragraph (2) incurred by such individual. 

15 ‘‘(4) INTEREST RATE.—The interest rate for a 

16 private education loan refinanced under this section 

17 shall be 8.25 percent. 

18 ‘‘(5) REPAYMENT TERMS.—A loan refinanced 

19 under this section shall have the same repayment 

20 terms, conditions, and benefits as a Federal Direct 

21 Consolidation Loan, except that such loan shall not 

22 be eligible for— 

23 ‘‘(A) consolidation with any other loan eli24 gible for loan consolidation under this title; 


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1 ‘‘(B) income-based repayment terms under 

2 this title; or 

3 ‘‘(C) any loan forgiveness or cancellation 

4 provided under this title or under the Public 

5 Health Service Act, except in the case of death 

6 or permanent and total disability. 

7 ‘‘(6) LOAN APPLICATION AND PROMISSORY

8 NOTE.—The Secretary shall develop and distribute a 

9 standard application and promissory note and loan 

10 disclosure form for loans refinanced under this sec11 tion. 

12 ‘‘(7) LOAN DISBURSEMENT.—The proceeds of 

13 any loan refinanced under this section shall be paid 

14 by the Secretary directly to the holder of the private 

15 education loan being refinanced for the purpose of 

16 discharging or reducing the debt on such private 

17 education loan on behalf of the borrower, subject to 

18 repayment terms under this section. 

19 ‘‘(d) ANNUAL REPORT TO CONGRESS.—The Sec20 retary shall report to Congress annually on the volume and 

21 repayment status of private education loans refinanced 

22 under this section.’’. 

Æ 


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