this paragraph after consultation with the Sec-
retary of the Treasury and the Chairman of the 
Board of Governors of the Federal Reserve Sys-
tem and shall publish such rate in the Federal 
Register as soon as practicable 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.’’. 
SEC. 3. ELIMINATION OF THE LOAN ORIGINATION FEES ON 
FEDERAL DIRECT STUDENT LOANS. 
Section 455(c) of the Higher Education Act of 1965 
(20 U.S.C. 1087e(c)) is amended by adding at the end 
the following: 
‘‘(3) SUNSET.—The Secretary may not charge 
the borrower of a loan under this part for which the 
first disbursement is made on or after July 1, 2018, 
an origination fee.’’. 
SEC. 4. REFINANCING FFEL AND FEDERAL DIRECT LOANS. 
Part D of title IV of the Higher Education Act of 
1965 (20 U.S.C. 1087a et seq.) is amended by adding at 
the end the following: 
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‘‘SEC. 460A. REFINANCING FFEL AND FEDERAL DIRECT 
LOANS. 
‘‘(a) IN GENERAL.—Beginning not later than 180 
days after the date of enactment of the Student Loan Re-
lief Act of 2017, the Secretary shall establish a program 
under which the Secretary, upon the receipt of an applica-
tion from a qualified borrower, makes a loan under this 
part, in accordance with the provisions of this section, in 
order to permit the borrower to obtain the interest rate 
provided under subsection (c). 
‘‘(b) REFINANCING DIRECT LOANS.— 
‘‘(1) FEDERAL DIRECT LOANS.—Upon applica-
tion of a qualified borrower, the Secretary shall 
repay any Federal Direct Stafford Loan, Federal Di-
rect Unsubsidized Stafford Loan, Federal Direct 
PLUS Loan, or Federal Direct Consolidation Loan 
of the qualified borrower, for which the first dis-
bursement was made, or the application for the 
original consolidation loan was received, before July 
1, 2018, with the proceeds of a new Federal Direct 
Stafford Loan, Federal Direct Unsubsidized Staf-
ford Loan, Federal Direct PLUS Loan, or Federal 
Direct Consolidation Loan, respectively, issued to 
the borrower in an amount equal to the sum of the 
unpaid principal, accrued unpaid interest, and late 
charges of the original loan. 
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‘‘(2) REFINANCING FFEL PROGRAM LOANS AS 
REFINANCED FEDERAL DIRECT LOANS.—Upon ap-
plication of a qualified borrower for any loan that 
was made, insured, or guaranteed under part B and 
for which the first disbursement was made, or the 
application for the consolidation loan was received, 
before July 1, 2010, the Secretary shall make a loan 
under this part, in an amount equal to the sum of 
the unpaid principal, accrued unpaid interest, and 
late charges of the original loan to the borrower in 
accordance with the following: 
‘‘(A) The Secretary shall pay the proceeds 
of such loan to the eligible lender of the loan 
made, insured, or guaranteed under part B, in 
order to discharge the borrower from any re-
maining obligation to the lender with respect to 
the original loan. 
‘‘(B) A loan made under this paragraph 
that covers— 
‘‘(i) a loan originally made, insured, 
or guaranteed under section 428 shall be a 
Federal Direct Stafford Loan; 
‘‘(ii) a loan originally made, insured, 
or guaranteed under section 428B shall be 
a Federal Direct PLUS Loan; 
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‘‘(iii) a loan originally made, insured, 
or guaranteed under section 428H shall be 
a Federal Direct Unsubsidized Stafford 
Loan; and 
‘‘(iv) a loan originally made, insured, 
or guaranteed under section 428C shall be 
a Federal Direct Consolidation Loan. 
‘‘(C) The interest rate for each loan made 
by the Secretary under this paragraph shall be 
the applicable rate provided under subsection 
(c). 
‘‘(c) INTEREST RATES.— 
‘‘(1) IN GENERAL.—The interest rate for the 
new Federal Direct Stafford Loans, Federal Direct 
Unsubsidized Stafford Loans, Federal Direct PLUS 
Loans, and Federal Direct Consolidation Loans, 
shall be a rate equal to— 
‘‘(A) in any case where the original loan 
was a loan under section 428 or 428H, a Fed-
eral Direct Stafford loan, or a Federal Direct 
Unsubsidized Stafford Loan, that was issued to 
an undergraduate student, a rate equal to the 
rate determined under section 455(b)(11)(A); 
‘‘(B) in any case where the original loan 
was a loan under section 428 or 428H, a Fed-
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eral Direct Stafford Loan, or a Federal Direct 
Unsubsidized Stafford Loan, that was issued to 
a graduate or professional student, a rate equal 
to 
the 
rate 
determined 
under 
section 
455(b)(11)(B); 
‘‘(C) in any case where the original loan 
was a loan under section 428B or a Federal Di-
rect PLUS Loan, a rate equal to the rate deter-
mined under section 455(b)(11)(C); and 
‘‘(D) in any case where the original loan 
was a loan under section 428C or a Federal Di-
rect Consolidation Loan, a rate calculated in ac-
cordance with paragraph (2). 
‘‘(2) INTEREST
RATE
FOR
CONSOLIDATION 
LOANS.— 
‘‘(A) 
METHOD
OF
CALCULATION.—In 
order to determine the interest rate for any new 
Federal Direct Consolidation Loan under para-
graph (1)(D), the Secretary shall— 
‘‘(i) determine each of the component 
loans that were originally consolidated in 
the loan under section 428C or the Federal 
Direct Consolidation Loan, and calculate 
the proportion of the unpaid principal bal-
ance of the loan under section 428C or the 
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Federal Direct Consolidation Loan that 
each component loan represents; 
‘‘(ii) use the proportions determined 
in accordance with clause (i) and the inter-
est rate applicable for each component 
loan, as determined under subparagraph 
(B), to calculate the weighted average of 
the interest rates on the loans consolidated 
into the loan under section 428C or the 
Federal Direct Consolidation Loan; and 
‘‘(iii) apply the weighted average cal-
culated under clause (ii) as the interest 
rate for the new Federal Direct Consolida-
tion Loan. 
‘‘(B) INTEREST
RATES
FOR
COMPONENT 
LOANS.—The interest rates for the component 
loans of a loan made under section 428C or a 
Federal Direct Consolidation Loan shall be the 
following: 
‘‘(i) The interest rate for any loan 
under section 428 or 428H, Federal Direct 
Stafford Loan, or Federal Direct Unsub-
sidized Stafford Loan issued to an under-
graduate student shall be a rate equal to 
the rate for Federal Direct Stafford Loans 
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