I 
113TH CONGRESS 
1ST SESSION H. R. 1979 
To prevent the doubling of the interest rate for Federal subsidized student 
loans for the 2013–2014 academic year by providing funds for such 
loans through the Federal Reserve System, to ensure that such loans 
are available at interest rates that are equivalent to the interest rates 
at which the Federal Government provides loans to banks through the 
discount window operated by the Federal Reserve System, and for other 
purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 14, 2013 
Mr. TIERNEY (for himself, Mr. BLUMENAUER, Mr. CUMMINGS, Mr. HOLT, 
and Ms. LEE of California) introduced the following bill; which was re-
ferred to the Committee on Education and the Workforce 
A BILL 
To prevent the doubling of the interest rate for Federal 
subsidized student loans for the 2013–2014 academic 
year by providing funds for such loans through the Fed-
eral Reserve System, to ensure that such loans are avail-
able at interest rates that are equivalent to the interest 
rates at which the Federal Government provides loans 
to banks through the discount window operated by the 
Federal Reserve System, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Bank on Students 
Loan Fairness Act’’. 
SEC. 2. PROVISION OF FUNDS FOR 2013–2014 FEDERAL DI-
RECT STAFFORD LOANS. 
Section 451 of the Higher Education Act of 1965 (20 
U.S.C. 1087a) is amended by adding at the end the fol-
lowing: 
‘‘(c) PROVISION OF FUNDS FOR 2013–2014 FED-
ERAL DIRECT STAFFORD LOANS.— 
‘‘(1) IN GENERAL.—The Board of Governors of 
the Federal Reserve System shall make available to 
the Secretary, from the combined earnings of the 
Federal Reserve System, the amount determined by 
the Secretary to be reasonably necessary to award 
Federal Direct Stafford Loans during the award 
year beginning July 1, 2013, to all eligible students 
in attendance at participating institutions of higher 
education selected by the Secretary to enable such 
students to pursue their courses of study at such in-
stitutions. 
‘‘(2) ADMINISTRATION
BY
SECRETARY
AND 
SIMILAR
TERMS.—The Federal Direct Stafford 
Loans funded under this subsection for the award 
year beginning July 1, 2013, shall be administered 
by the Secretary and shall be made in accordance 
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with the requirements, and be subject to all terms 
and conditions, of this part, except that appropria-
tions provided under the first sentence of subsection 
(a) shall not be used for any Federal Direct Stafford 
Loans made during such period.’’. 
SEC. 3. ADJUSTMENT OF FEDERAL DIRECT STAFFORD 
LOAN INTEREST RATES. 
(a) IN GENERAL.—Section 455(b)(7) of the Higher 
Education Act of 1965 (20 U.S.C. 1087e(b)(7)) is amend-
ed by adding at the end the following: 
‘‘(E) REDUCED RATES FOR FDSL LOANS 
DISBURSED ON OR AFTER JULY 1, 2013, AND 
BEFORE
JULY
1, 2014.—Notwithstanding the 
preceding paragraphs of this subsection and 
subparagraph (A) of this paragraph, for Fed-
eral Direct Stafford Loans made to under-
graduate students for which the first disburse-
ment is made on or after July 1, 2013, and be-
fore July 1, 2014, the applicable rate of interest 
shall be the primary credit rate charged by the 
Federal Reserve banks on July 1, 2013, for 
purposes of sections 13 and 13A of the Federal 
Reserve Act (12 U.S.C. 342 et seq.).’’. 
(b) 
CONFORMING
AMENDMENTS.—Section 
455(b)(7)(D) of the Higher Education Act of 1965 (20 
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U.S.C. 1087e(b)(7)(D)) is amended in the subparagraph 
heading by striking ‘‘FDSL’’ and inserting ‘‘FDSL ISSUED 
ON OR AFTER JULY 1, 2006, AND BEFORE JULY 1, 2013’’. 
Æ 
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