‘‘(II) the original interest rate of 
the component loan. 
‘‘(ii) The interest rate for any loan 
under section 428 or 428H, Federal Direct 
Stafford Loan, or Federal Direct Unsub-
sidized Stafford Loan, that is issued to a 
graduate or professional student shall be a 
rate equal to the lesser of— 
‘‘(I) the rate for Federal Direct 
Unsubsidized Stafford Loans issued 
to graduate or professional students 
for the 12-month period beginning on 
July 1, 2020, and ending on June 30, 
2021; or 
‘‘(II) the original interest rate of 
the component loan. 
‘‘(iii) The interest rate for any loan 
under section 428B or Federal Direct 
PLUS Loan shall be a rate equal to the 
lesser of— 
‘‘(I) the rate for Federal Direct 
PLUS Loans for the 12-month period 
beginning on July 1, 2020, and end-
ing on June 30, 2021; or 
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‘‘(II) the original interest rate of 
the component loan. 
‘‘(iv) The interest rate for any loan 
under part E this title, or subpart II of 
part A of title VII or part E of title VIII 
of the Public Health Service Act (42 
U.S.C. 292q et seq.; 297a et seq.), shall be 
a rate equal to the lesser of— 
‘‘(I) the rate for Federal Direct 
Stafford Loans and Federal Direct 
Unsubsidized Stafford Loans issued 
to graduate students for the 12-month 
period beginning on July 1, 2020, and 
ending on June 30, 2021; or 
‘‘(II) the original interest rate of 
the component loan. 
‘‘(v) The interest rate for any compo-
nent loan that is a loan under section 
428C or a Federal Direct Consolidation 
Loan shall be the weighted average of the 
interest rates that would apply under this 
subparagraph for each loan comprising the 
component consolidation loan. 
‘‘(3) FIXED RATE.—The applicable rate of in-
terest determined under paragraph (1) for a refi-
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nanced loan under this section shall be fixed for the 
period of the loan. 
‘‘(4) RULE
OF
CONSTRUCTION.—Nothing in 
this section shall be construed to prevent a borrower 
of a Federal student loan described in subparagraph 
(B) or (C) of subsection (a)(1) from consolidating 
such loans with other loans eligible for consolidation 
under this section, or to require such a borrower to 
consolidate such loans with other Federal student 
loans into a single consolidation loan under this sec-
tion. 
‘‘(e) TERMS AND CONDITIONS OF LOANS.— 
‘‘(1) IN GENERAL.—A loan that is refinanced 
under this section shall have the same terms and 
conditions as the original loan, except as otherwise 
provided in this section. 
‘‘(2) NO
AUTOMATIC
EXTENSION
OF
REPAY-
MENT PERIOD.—Refinancing a loan under this sec-
tion shall not result in the extension of the duration 
of the repayment period of the loan, and the bor-
rower shall retain the same repayment term that 
was in effect on the original loan. Nothing in this 
paragraph shall be construed to prevent a borrower 
from electing a different repayment plan at any time 
in accordance with section 455(d)(3). 
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‘‘(3) SPECIAL RULE FOR REFINANCED PERKINS 
AND HEALTH LOANS.—Notwithstanding paragraph 
(1), in the case of a loan that is refinanced under 
this section as a Federal Direct Consolidation Loan 
and that was originally a loan described in subpara-
graph (B) or (C) of subsection (a)(1)— 
‘‘(A) the refinanced Federal Direct Con-
solidation Loan shall have the same terms and 
conditions as a Federal Direct Consolidation 
Loan, except as otherwise provided in this sec-
tion; and 
‘‘(B) the Secretary may adjust such terms 
and conditions as necessary to enable the bor-
rower to access loan forgiveness or other bene-
fits available to the borrower under the loan be-
fore refinancing under this section, in any case 
where such benefits are more generous than 
provided under a Federal Direct Consolidation 
Loan. 
‘‘(f) NOTIFICATION TO BORROWERS.—The Secretary, 
in coordination with the Director of the Bureau of Con-
sumer Financial Protection, shall undertake a campaign 
to alert borrowers of FFEL, Perkins, or PHSA student 
loans that are eligible for refinancing under this section 
that the borrowers are eligible to apply for such refi-
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nancing. The campaign shall include the following activi-
ties: 
‘‘(1) Developing consumer information mate-
rials about the availability of Federal student loan 
refinancing. 
‘‘(2) Requiring servicers of loans under part B 
to provide such consumer information to borrowers 
in a manner determined appropriate by the Sec-
retary, in consultation with the Director of the Bu-
reau of Consumer Financial Protection. 
‘‘SEC. 460B. FEDERAL DIRECT REFINANCED PRIVATE LOAN 
PROGRAM. 
‘‘(a) DEFINITIONS.—In this section: 
‘‘(1) ELIGIBLE PRIVATE EDUCATION LOAN.— 
The term ‘eligible private education loan’ means a 
private education loan, as defined in section 140(a) 
of the Truth in Lending Act (15 U.S.C. 1650(a)), 
that— 
‘‘(A) was disbursed to the borrower before 
July 1, 2020; and 
‘‘(B) was for the borrower’s own postsec-
ondary educational expenses for an eligible pro-
gram at an institution of higher education par-
ticipating in the loan program under this part, 
as of the date that the loan was disbursed. 
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‘‘(2) FEDERAL DIRECT REFINANCED PRIVATE 
LOAN.—The term ‘Federal Direct Refinanced Pri-
vate Loan’ means a loan issued under subsection 
(b)(1). 
‘‘(3) PRIVATE
EDUCATIONAL
LENDER.—The 
term ‘private educational lender’ has the meaning 
given the term in section 140(a) of the Truth in 
Lending Act (15 U.S.C. 1650(a)). 
‘‘(4) QUALIFIED BORROWER.—The term ‘quali-
fied borrower’ means an individual who has an eligi-
ble private education loan. 
‘‘(b) PROGRAM AUTHORIZED.— 
‘‘(1) IN GENERAL.—The Secretary, in consulta-
tion with the Secretary of the Treasury, shall carry 
out a program under which the Secretary, upon ap-
plication by a qualified borrower who has an eligible 
private education loan, shall issue such borrower a 
loan under this part in accordance with the fol-
lowing: 
‘‘(A) The loan issued under this program 
shall be in an amount equal to the sum of the 
unpaid principal, accrued unpaid interest, and 
late charges of the private education loan. 
‘‘(B) The Secretary shall pay the proceeds 
of the loan issued under this program to the 
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private educational lender of the private edu-
cation loan, in order to discharge the qualified 
borrower from any remaining obligation to the 
lender with respect to the original loan. 
‘‘(C) The Secretary shall require that the 
qualified borrower undergo loan counseling that 
provides all of the information and counseling 
required under clauses (i) through (viii) of sec-
tion 485(b)(1)(A) before the loan is refinanced 
in accordance with this section, and before the 
proceeds of such loan are paid to the private 
educational lender. 
‘‘(D) The Secretary shall issue the loan as 
a Federal Direct Refinanced Private Loan, 
which shall have the same terms, conditions, 
and benefits as a Federal Direct Unsubsidized 
Stafford Loan, except as otherwise provided in 
this section. 
‘‘(2) PRIVATE
EDUCATIONAL
LENDERS.—Not 
later than 180 days after the date of enactment of 
the Bank on Students Coronavirus Emergency Loan 
Refinancing Act of 2020, the Secretary, in consulta-
tion with the Secretary of the Treasury and the Di-
rector of the Bureau of Consumer Financial Protec-
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tion, shall establish eligibility requirements to pre-
clude windfall profits for private educational lenders. 
‘‘(c) INTEREST RATE.— 
‘‘(1) IN
GENERAL.—The interest rate for a 
Federal Direct Refinanced Private Loan is— 
‘‘(A) in the case of a Federal Direct Refi-
nanced Private Loan for a private education 
loan originally issued for undergraduate post-
secondary educational expenses, a rate equal to 
the rate for Federal Direct Stafford Loans and 
Federal Direct Unsubsidized Stafford Loans 
issued to undergraduate students for the 12- 
month period beginning on July 1, 2020, and 
ending on June 30, 2021; and 
‘‘(B) in the case of a Federal Direct Refi-
nanced Private Loan for a private education 
loan originally issued for graduate or profes-
sional degree postsecondary educational ex-
penses, a rate equal to the rate for Federal Di-
rect Unsubsidized Stafford Loans issued to 
graduate or professional students for the 12- 
month period beginning on July 1, 2020, and 
ending on June 30, 2021. 
‘‘(2) COMBINED UNDERGRADUATE AND GRAD-
UATE
STUDY
LOANS.—If a Federal Direct Refi-
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nanced Private Loan is for a private education loan 
originally issued for both undergraduate and grad-
uate or professional postsecondary educational ex-
penses, the interest rate shall be a rate equal to the 
rate for Federal Direct PLUS Loans for the 12- 
month period beginning on July 1, 2020, and ending 
on June 30, 2021. 
‘‘(3) FIXED RATE.—The applicable rate of in-
terest determined under this subsection for a Fed-
eral Direct Refinanced Private Loan shall be fixed 
for the period of the loan. 
‘‘(d) NO INCLUSION IN AGGREGATE LIMITS.—The 
amount of a Federal Direct Refinanced Private Loan, or 
a Federal Direct Consolidated Loan to the extent such 
loan was used to repay a Federal Direct Refinanced Pri-
vate Loan, shall not be included in calculating a bor-
rower’s annual or aggregate loan limits under section 428 
or 428H. 
‘‘(e) SPECIAL RULE FOR ELIGIBILITY FOR SERVICE- 
RELATED
REPAYMENT.—Notwithstanding 
sections 
428K(a)(2), 428L(b)(2), 455(m)(3)(A), and 460(b), a 
Federal Direct Refinanced Private Loan shall be eligible 
for any loan repayment or loan forgiveness program under 
section 428K, 428L, or 460, or for the repayment plan 
for public service employees under section 455(m), but 
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only with respect to any balance due, payments made, or 
service completed, after the date on which such Federal 
Direct Refinanced Private Loan was issued. 
‘‘(f) PRIVATE EDUCATIONAL LENDER REPORTING 
REQUIREMENT.— 
‘‘(1) REPORTING
REQUIRED.—Not later than 
180 days after the date of enactment of the Bank 
on Students Coronavirus Emergency Loan Refi-
nancing Act of 2020, the Secretary, in consultation 
with the Secretary of the Treasury and the Director 
of the Bureau of Consumer Financial Protection, 
shall establish a requirement that private edu-
cational lenders report the data described in para-
graph (2) to the Secretary, to Congress, to the Sec-
retary of the Treasury, and to the Director of the 
Bureau of Consumer Financial Protection, in order 
to allow for an assessment of the private education 
loan market. 
‘‘(2) CONTENTS
OF
REPORTING.—The data 
that private educational lenders shall report in ac-
cordance with paragraph (1) shall include each of 
the following about private education loans (as de-
fined in section 140(a) of the Truth in Lending Act 
(15 U.S.C. 1650(a))): 
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‘‘(A) The total amount of private education 
loan debt the lender holds. 
‘‘(B) The total number of private edu-
cation loan borrowers the lender serves. 
‘‘(C) The average interest rate on the out-
standing private education loan debt held by the 
lender. 
‘‘(D) The proportion of private education 
loan borrowers who are in default on a loan 
held by the lender. 
‘‘(E) The proportion of the outstanding 
private education loan volume held by the lend-
er that is in default. 
‘‘(F) The proportions of outstanding pri-
vate education loan borrowers who are 30, 60, 
and 90 days delinquent. 
‘‘(G) The proportions of outstanding pri-
vate education loan volume that is 30, 60, and 
90 days delinquent. 
‘‘(g) NOTIFICATION
TO
BORROWERS.—The Sec-
retary, in coordination with the Secretary of the Treasury 
and the Director of the Bureau of Consumer Financial 
Protection, shall undertake a campaign to alert borrowers 
about the availability of private student loan refinancing 
under this section.’’. 
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(c) 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: 
‘‘(f) SPECIAL RULE FOR REFINANCED LOANS.— 
‘‘(1) REFINANCED
FEDERAL
DIRECT, FFEL, 
AND PLUS LOANS.—In calculating the period of time 
during which a borrower of a loan (with the excep-
tion of a Federal Direct Consolidation Loan) that is 
refinanced under section 460A has made monthly 
payments for purposes of subsection (b)(7), the Sec-
retary shall deem the period to include all monthly 
payments made for the original loan, and all month-
ly payments made for the refinanced loan, that oth-
erwise meet the requirements of this section. 
‘‘(2) REFINANCED FEDERAL DIRECT CONSOLI-
DATION LOANS.—In calculating the period of time 
during which a borrower of a Federal Direct Con-
solidation Loan that is refinanced under section 
460A has made monthly payments for the purposes 
of subsection (b)(7), the Secretary shall— 
‘‘(A) review the borrower’s payment his-
tory to identify each component loan of such 
Federal Direct Consolidation Loan; 
‘‘(B) for each such component loan— 
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shall be deemed as qualifying monthly payments 
made on the refinanced Federal Direct Consoli-
dation Loan, by— 
‘‘(i) adding together the result of each 
calculation made under subparagraph (C) 
with respect to each such component loan; 
and 
‘‘(ii) rounding the number determined 
under clause (i) to the nearest whole num-
ber. 
‘‘(3) FEDERAL DIRECT REFINANCED PRIVATE 
LOANS.—In calculating the period of time during 
which a borrower of a Federal Direct Refinanced 
Private Loan under section 460B has made monthly 
payments for purposes of subsection (b)(7), the Sec-
retary shall include only payments— 
‘‘(A) that are made after the date of the 
issuance of the Federal Direct Refinanced Pri-
vate Loan; and 
‘‘(B) that otherwise meet the requirements 
of this section.’’. 
(d) CONFORMING AMENDMENTS.—The Higher Edu-
cation Act of 1965 (20 U.S.C. 1001 et seq.) is amended— 
(1) in section 428J(c)(2) (20 U.S.C. 1078– 
10(c)(2)), by inserting ‘‘a Federal Direct Refinanced 
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Private Loan,’’ after ‘‘a Federal Direct Unsubsidized 
Stafford Loan,’’; 
(2) in section 455 (20 U.S.C. 1087e)— 
(A) in subsection (f)(1)(B), by inserting ‘‘a 
Federal Direct Refinanced Private Loan,’’ after 
‘‘a 
Federal 
Direct 
Unsubsidized 
Stafford 
Loan,’’; 
(B) in subsection (m)(3)(A), by striking 
‘‘or Federal Direct Unsubsidized Stafford 
Loan,’’ and inserting ‘‘Federal Direct Unsub-
sidized Stafford Loan, or Federal Direct Refi-
nanced Private Loan,’’; and 
(3) in section 460 (20 U.S.C. 1087j)— 
(A) in subsection (b), by striking ‘‘and 
Federal Direct Unsubsidized Stafford Loans’’ 
and inserting ‘‘Federal Direct Unsubsidized 
Stafford Loans, and Federal Direct Refinanced 
Private Loans’’; and 
(B) in subsection (c)— 
(i) in paragraph (1), by striking ‘‘or a 
Federal 
Direct 
Unsubsidized 
Stafford 
Loan’’ and inserting ‘‘, a Federal Direct 
Unsubsidized Stafford Loan, or a Federal 
Direct Refinanced Private Loan’’; and 
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(ii) in paragraph (2), by inserting ‘‘a 
Federal Direct Refinanced Private Loan,’’ 
after ‘‘a Federal Direct Unsubsidized Staf-
ford Loan,’’. 
(e) EFFECTIVE DATE.—The amendments made by 
this section shall take effect on July 1, 2020. 
Æ 
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