sideration providing access to refinancing under this 
section for borrowers with the greatest financial 
need. 
‘‘(f) EXPIRATION OF AUTHORITY.—The Secretary’s 
authority to reissue loans under this section shall expire 
on the date that is determined in accordance with section 
4 of the Fairness in Student Loan Lending Act.’’. 
(c) AMENDMENTS TO PUBLIC SERVICE REPAYMENT 
PLAN PROVISIONS.—Section 455(m) of the Higher Edu-
cation Act of 1965 (20 U.S.C. 1087e(m)) is amended— 
(1) by redesignating paragraphs (3) and (4) as 
paragraphs (4) and (5), respectively; 
(2) by inserting after paragraph (2) the fol-
lowing: 
‘‘(3) SPECIAL
RULES
FOR
SECTION
460A 
LOANS.— 
‘‘(A) 
REFINANCED
FEDERAL
DIRECT 
LOANS.—Notwithstanding paragraph (1), in de-
termining the number of monthly payments 
that meet the requirements of such paragraph 
for an eligible Federal Direct Loan reissued 
under section 460A that was originally a loan 
under this part, the Secretary shall include all 
monthly payments made on the original loan 
that meet the requirements of such paragraph. 
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‘‘(B) REFINANCED FFEL LOANS.—In the 
case of an eligible Federal Direct Loan reissued 
under section 460A that was originally a loan 
under part B, only monthly payments made 
after the date on which the loan was reissued 
may be included for purposes of paragraph 
(1).’’; and 
(3) in paragraph (4)(A) (as redesignated by 
paragraph (1) of this subsection), by inserting ‘‘(in-
cluding any Federal Direct Stafford Loan, Federal 
Direct PLUS Loan, Federal Direct Unsubsidized 
Stafford Loan, or Federal Direct Consolidation 
Loan reissued under section 460A)’’ before the pe-
riod at the end. 
(d) INCOME-BASED REPAYMENT.—Section 493C of 
the Higher Education Act of 1965 (20 U.S.C. 1098e) is 
amended by adding at the end the following: 
‘‘(a) REFINANCED FEDERAL DIRECT
AND FFEL 
LOANS.—In calculating the period of time during which 
a borrower of a loan that is reissued under section 460A 
has made monthly payments for purposes of subsection 
(b)(7), the Secretary shall deem the period to include all 
monthly payments made for the original loan, and all 
monthly payments made for the reissued loan, that other-
wise meet the requirements of this section.’’. 
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SEC. 3. INTEREST RATES. 
(a) INTEREST RATES.—Section 455(b) of the Higher 
Education Act of 1965 (20 U.S.C. 1087e(b)) is amend-
ed— 
(1) by redesignating paragraph (9) as para-
graph (10); and 
(2) by inserting after paragraph (8) the fol-
lowing: 
‘‘(9) INTEREST
RATE
PROVISIONS
FOR
NEW 
LOANS ON OR AFTER JULY 1, 2019.— 
‘‘(A) RATES FOR UNDERGRADUATE FDSL 
AND
FDUSL.—Notwithstanding the preceding 
paragraphs of this subsection, for Federal Di-
rect Stafford Loans and Federal Direct Unsub-
sidized Stafford Loans issued to undergraduate 
students, for which the first disbursement is 
made on or after July 1, 2019, the applicable 
rate of interest shall, for loans disbursed during 
any 12-month period beginning on July 1 and 
ending on June 30, be determined on the pre-
ceding June 1 and be equal to the lesser of— 
‘‘(i) a rate equal to— 
‘‘(I) the high yield of the 10-year 
Treasury note auctioned at the final 
auction held prior to such June 1, 
plus 
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‘‘(II) 1 percent; or 
‘‘(ii) 8.25 percent. 
‘‘(B) RATES FOR GRADUATE AND PROFES-
SIONAL
FDUSL.—Notwithstanding 
the 
pre-
ceding paragraphs of this subsection, for Fed-
eral Direct Unsubsidized Stafford Loans issued 
to graduate or professional students, for which 
the first disbursement is made on or after July 
1, 2019, the applicable rate of interest shall, for 
loans disbursed during any 12-month period be-
ginning on July 1 and ending on June 30, be 
determined on the preceding June 1 and be 
equal to the lesser of— 
‘‘(i) a rate equal to— 
‘‘(I) the high yield of the 10-year 
Treasury note auctioned at the final 
auction held prior to such June 1, 
plus 
‘‘(II) 1 percent; or 
‘‘(ii) 9.5 percent. 
‘‘(C) PLUS LOANS.—Notwithstanding the 
preceding paragraphs of this subsection, for 
Federal Direct PLUS Loans, for which the first 
disbursement is made on or after July 1, 2019, 
the applicable rate of interest shall, for loans 
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disbursed during any 12-month period begin-
ning on July 1 and ending on June 30, be de-
termined on the preceding June 1 and be equal 
to the lesser of— 
‘‘(i) a rate equal to— 
‘‘(I) the high yield of the 10-year 
Treasury note auctioned at the final 
auction held prior to such June 1, 
plus 
‘‘(II) 1 percent; or 
‘‘(ii) 10.5 percent. 
‘‘(D) CONSOLIDATION
LOANS.—Notwith-
standing the preceding paragraphs of this sub-
section, any Federal Direct Consolidation Loan 
for which the application is received on or after 
July 1, 2019, shall bear interest at an annual 
rate on the unpaid principal balance of the loan 
that is equal to the weighted average of the in-
terest rates on the loans consolidated, rounded 
to the nearest higher one-eighth of one percent. 
‘‘(E) CONSULTATION.—The Secretary shall 
determine the applicable rate of interest under 
this paragraph after consultation with the Sec-
retary of the Treasury and shall publish such 
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rate in the Federal Register as soon as prac-
ticable after the date of determination. 
‘‘(F) RATE.—The applicable rate of inter-
est determined under this paragraph for a Fed-
eral Direct Stafford Loan, a Federal Direct Un-
subsidized Stafford Loan, or a Federal Direct 
PLUS Loan shall be fixed for the period of the 
loan.’’. 
(b) IN SCHOOL DEFERMENT.—Section 455(f) of the 
Higher Education Act of 1965 (20 U.S.C. 1087e(f)) is 
amended— 
(1) in paragraph (1), in the matter preceding 
subparagraph (A), by striking ‘‘A borrower’’ and in-
serting ‘‘Except as provided in paragraph (5), a bor-
rower’’; 
(2) in paragraph (2)(A)— 
(A) by striking the matter following clause 
(ii); 
(B) in clause (ii), by striking the comma at 
the end and inserting ‘‘; or’’; and 
(C) by adding at the end the following: 
‘‘(iii) is serving in a medical or dental 
internship or residency program;’’; and 
(3) by adding at the end the following new 
paragraph: 
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‘‘(5) 
SPECIAL
RULE
FOR
IN
SCHOOL 
DEFERMENT.—Notwithstanding any other provision 
of this Act, a borrower described in paragraph 
(2)(A) shall be eligible for a deferment, during which 
periodic installments of principal need not be paid, 
and interest— 
‘‘(A) shall not accrue, in the case of a bor-
rower with an expected family contribution of 
not more than $10,000 (computed in accord-
ance with part F of this title); and 
‘‘(B) shall accrue at the rate equal to the 
high yield of the 10-year Treasury note applica-
ble to such loan under subsection (b)(9), in the 
case of a borrower of an unsubsidized loan with 
an expected family contribution of more than 
$10,000 (computed in accordance with part F 
of this title).’’. 
(c) EFFECTIVE DATE.—The amendments made by 
subsections (a) and (b) shall take effect on July 1, 2019. 
SEC. 4. ELIMINATION OF ORIGINATION FEES FOR FEDERAL 
DIRECT LOANS. 
(a) SENSE OF CONGRESS.—It is the sense of Con-
gress that no origination fees should be charged on any 
future Federal Direct Loans. 
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(b) REPEAL OF ORIGINATION FEES.—Subsection (c) 
of section 455 of the Higher Education Act of 1965 (20 
U.S.C. 1087e(c)) is repealed. 
(c) EFFECTIVE DATE.—The amendment made by 
subsection (b) shall apply with respect to loans made 
under part D of title IV of the Higher Education Act of 
1965 (20 U.S.C. 1087a et seq.) for which the first dis-
bursement of principal is made, or, in the case of a Fed-
eral Direct Consolidation Loan, the application is received, 
on the first July 1 after the date of enactment of this 
Act. 
Æ 
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