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[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 2198 Introduced in Senate (IS)]

108th CONGRESS
  2d Session
                                S. 2198

       To provide for refinancing of consolidated student loans.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                             March 11, 2004

  Mrs. Boxer introduced the following bill; which was read twice and 
  referred to the Committee on Health, Education, Labor, and Pensions

_______________________________________________________________________

                                 A BILL

 
       To provide for refinancing of consolidated student loans.

    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 ``Consolidated Student Loan Reduction 
Act of 2004''.

SEC. 2. REFINANCING AUTHORITY FOR CONSOLIDATED STUDENT LOANS.

    (a) Federal Consolidation Loans.--Section 428C of the Higher 
Education Act of 1965 (20 U.S.C. 1078-3) is amended by adding at the 
end the following:
    ``(g) Refinancing Authority.--
            ``(1) In general.--Notwithstanding any other provision of 
        this part and subject to paragraph (2), a borrower may 
        refinance a consolidation loan at a fixed rate that is equal to 
        the interest rate for Federal Stafford Loans under section 
        427A(k) at the time the borrower applies for the refinancing.
            ``(2) One percent interest rate difference required.--A 
        borrower may refinance a consolidation loan under this 
        subsection whenever the interest rate for the consolidation 
        loan to be refinanced exceeds the fixed interest rate 
        determined under paragraph (1) by 1 percent or more.
            ``(3) Student fee prohibited.--No student shall be charged 
        a fee to refinance a consolidation loan under this 
        subsection.''.
    (b) Federal Direct Consolidation Loans.--Section 455(g) of the 
Higher Education Act of 1965 (20 U.S.C. 1087e(g)) is amended--
            (1) by striking ``A borrower'' and inserting the following:
            ``(1) In general.--A borrower''; and
            (2) by adding at the end the following:
            ``(2) Refinancing authority.--
                    ``(A) In general.--Notwithstanding any other 
                provision of this part and subject to subparagraph (B), 
                a borrower may refinance a Federal Direct Consolidation 
                Loan at a fixed rate that is equal to the interest rate 
                for Federal Stafford Loans under section 427A(k) at the 
                time the borrower applies for the refinancing.
                    ``(B) One percent interest rate difference 
                required.--A borrower may refinance a consolidation 
                loan under this subsection whenever the interest rate 
                for the consolidation loan to be refinanced exceeds the 
                fixed interest rate determined under subparagraph (A) 
                by 1 percent or more.
                    ``(C) Student fee prohibited.--No student shall be 
                charged a fee to refinance a consolidation loan under 
                this paragraph.''.
                                 <all>
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