I 
113TH CONGRESS 
1ST SESSION H. R. 1946 
To amend the Federal Direct Loan Program under the Higher Education 
Act of 1965 to provide for student loan affordability, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 9, 2013 
Mr. TIERNEY (for himself, Mr. COURTNEY, and Mr. GEORGE MILLER of Cali-
fornia) introduced the following bill; which was referred to the Committee 
on Education and the Workforce 
A BILL 
To amend the Federal Direct Loan Program under the High-
er Education Act of 1965 to provide for student loan 
affordability, and for other purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Responsible Student 
Loan Solutions Act’’. 
SEC. 2. STUDENT LOAN AFFORDABILITY. 
(a) TERMS AND CONDITIONS OF FEDERAL DIRECT 
LOANS.—Section 455 of the Higher Education Act of 
1965 (20 U.S.C. 1087e) is amended— 
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(1) in subsection (a), by adding at the end the 
following: 
‘‘(4) FEDERAL DIRECT STAFFORD LOAN LIMITS 
FOR NEW LOANS ON OR AFTER JULY 1, 2013.— 
‘‘(A) AGGREGATE LOAN LIMITS.—Notwith-
standing any other provision of this Act, with 
respect to Federal Direct Stafford Loans for 
which the first disbursement is made on or 
after July 1, 2013, the aggregate unpaid prin-
cipal amount for all such loans made on or 
after such date (and including Federal Direct 
Stafford Loans first disbursed before such date) 
to any student shall not at any time exceed— 
‘‘(i) $31,000, in the case of any de-
pendent student (except an undergraduate 
dependent student whose parents are un-
able to borrow under the Federal Direct 
PLUS Loan Program) who has not suc-
cessfully completed a program of under-
graduate education; or 
‘‘(ii) $57,500, in the case of any inde-
pendent student, or an undergraduate de-
pendent student whose parents are unable 
to borrow under the Federal Direct PLUS 
Loan Program, who has not successfully 
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completed a program of undergraduate 
education. 
‘‘(B) ANNUAL
LOAN
LIMITS.—Notwith-
standing any other provision of this Act, with 
respect to Federal Direct Stafford Loans for 
which the first disbursement is made on or 
after July 1, 2013, the maximum annual 
amount for all such loans made on or after such 
date a student who has not successfully com-
pleted a program of undergraduate education 
may borrow in any academic year shall not at 
any time exceed— 
‘‘(i) in the case of a dependent stu-
dent (except an undergraduate dependent 
student whose parents are unable to bor-
row under the Federal Direct PLUS Loan 
Program)— 
‘‘(I) who has not successfully 
completed the first year of a program 
of undergraduate education, $5,500; 
‘‘(II) who has successfully com-
pleted such first year but has not suc-
cessfully completed the remainder of a 
program of undergraduate education, 
$6,500; and 
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‘‘(III) who has successfully com-
pleted the first and second years of a 
program of undergraduate education 
but has not successfully completed the 
remainder of such program, $7,500; 
and 
‘‘(ii) in the case of an independent 
student, or an undergraduate dependent 
student whose parents are unable to bor-
row under the Federal Direct PLUS Loan 
Program— 
‘‘(I) who has not successfully 
completed the first year of a program 
of undergraduate education, $9,500; 
‘‘(II) who has successfully com-
pleted such first year but has not suc-
cessfully completed the remainder of a 
program of undergraduate education, 
$10,500; and 
‘‘(III) who has successfully com-
pleted the first and second years of a 
program of undergraduate education 
but has not successfully completed the 
remainder 
of 
such 
program, 
$12,500.’’; 
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(2) in subsection (b)— 
(A) in paragraph (7)— 
(i) in the paragraph heading, by in-
serting ‘‘, AND BEFORE JULY 1, 2013’’ after 
‘‘2006’’; 
(ii) in subparagraph (A), by inserting 
‘‘and before July 1, 2013,’’ after ‘‘2006,’’; 
(iii) in subparagraph (B), by inserting 
‘‘and before July 1, 2013,’’ after ‘‘2006,’’; 
and 
(iv) in subparagraph (C), by inserting 
‘‘and before July 1, 2013,’’ after ‘‘2006,’’; 
(B) by redesignating paragraphs (8) and 
(9) as paragraphs (9) and (10), respectively; 
and 
(C) by inserting after paragraph (7) the 
following: 
‘‘(8) INTEREST RATES FOR NEW LOANS ON OR 
AFTER JULY 1, 2013.— 
‘‘(A) RATES FOR FDSL AND FDUSL.—Not-
withstanding the preceding paragraphs of this 
subsection, for— 
‘‘(i) Federal Direct Stafford Loans for 
which the first disbursement is made on or 
after July 1, 2013, the applicable rate of 
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interest shall, during any 12-month period 
beginning on July 1 and ending on June 
30, be determined on the preceding June 1 
and be equal to— 
‘‘(I) the bond equivalent rate of 
91-day Treasury bills auctioned at the 
final auction held prior to such June 
1; plus 
‘‘(II) a percentage determined 
under subparagraph (D), 
except that such rate shall not exceed 6.8 
percent; and 
‘‘(ii) Federal Direct Unsubsidized 
Stafford Loans for which the first dis-
bursement is made on or after July 1, 
2013, the applicable rate of interest shall, 
during any 12-month period beginning on 
July 1 and ending on June 30, be deter-
mined on the preceding June 1 and be 
equal to— 
‘‘(I) the bond equivalent rate of 
91-day Treasury bills auctioned at the 
final auction held prior to such June 
1; plus 
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‘‘(II) a percentage determined 
under subparagraph (D), 
except that such rate shall not exceed 8.25 
percent. 
‘‘(B) RATES FOR PLUS LOANS.—Notwith-
standing the preceding paragraphs of this sub-
section, for Federal Direct PLUS Loans for 
which the first disbursement is made on or 
after July 1, 2013, the applicable rate of inter-
est shall, during any 12-month period beginning 
on July 1 and ending on June 30, be deter-
mined on the preceding June 1 and be equal 
to— 
‘‘(i) the bond equivalent rate of 91- 
day Treasury bills auctioned at the final 
auction held prior to such June 1; plus 
‘‘(ii) a percentage determined under 
subparagraph (D), 
except that such rate shall not exceed 8.25 per-
cent. 
‘‘(C) CONSOLIDATION
LOANS.—Notwith-
standing the preceding paragraphs of this sub-
section, for Federal Direct Consolidation Loans 
for which the first disbursement is made on or 
after July 1, 2013, the applicable rate of inter-
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est shall, during any 12-month period beginning 
on July 1 and ending on June 30, be deter-
mined on the preceding June 1 and be equal 
to— 
‘‘(i) the bond equivalent rate of 91- 
day Treasury bills auctioned at the final 
auction held prior to such June 1; plus 
‘‘(ii) a percentage determined under 
subparagraph (D), 
except that such rate shall not exceed 8.25 per-
cent. 
‘‘(D) PERCENTAGE DETERMINATION.—Ex-
cept as provided in the flush text under clauses 
(i) and (ii) of subparagraph (A), subparagraph 
(B), and subparagraph (C), during each 12- 
month period beginning on July 1 and ending 
on June 30, beginning on July 1, 2013, the 
Secretary shall determine a percentage for ap-
plication under clauses (i)(II) and (ii)(II) of 
subparagraph (A), subparagraph (B)(ii), and 
subparagraph (C)(ii). In carrying out this sub-
paragraph, the Secretary may determine dif-
ferent percentages for application under each 
such clause or subparagraph, as long as such 
percentages in the aggregate— 
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‘‘(i) represent the total cost of admin-
istering the Federal Direct Loan program 
and borrower benefits; and 
‘‘(ii) result in such program being rev-
enue neutral for such 12-month period.’’; 
and 
(3) in subsection (c), by adding at the end the 
following: 
‘‘(3) REDUCTION OF FEE FOR FEDERAL DIRECT 
PLUS LOANS.—Notwithstanding paragraph (1), for 
any Federal Direct PLUS Loan for which the first 
disbursement is made on or after July 1, 2013, the 
Secretary shall charge the borrower of the Loan an 
origination fee of not more than 3 percent of the 
principal amount of the loan.’’. 
(b) REFINANCING.—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: 
‘‘SEC. 460A. REFINANCING. 
‘‘(a) REFINANCING FOR PLUS LOANS.— 
‘‘(1) 
REISSUING
FEDERAL
DIRECT
PLUS 
LOANS.—The Secretary may reissue a Federal Di-
rect PLUS Loan for which the first disbursement 
was made before July 1, 2013, that is not in default 
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in order to permit the borrower to obtain the inter-
est rate provided under section 455(b)(8)(B). 
‘‘(2) PURCHASING FEDERAL PLUS LOANS.—The 
Secretary may purchase a Federal PLUS Loan that 
is not in default and reissue such loan in order to 
permit the borrower to obtain the interest rate pro-
vided under section 455(b)(8)(B). 
‘‘(3) ADMINISTRATIVE
FEE.—The Secretary 
may charge a borrower an amount not to exceed 0.5 
percent of the principal amount of the loan to be re-
issued or purchased to cover the administrative cost 
of reissuing or purchasing such loan, which amount 
shall be paid to the Secretary. 
‘‘(b) REFINANCING FOR STAFFORD LOANS.— 
‘‘(1) REISSUING
FEDERAL
DIRECT
STAFFORD 
LOANS.—The Secretary may reissue a Federal Di-
rect Stafford Loan or a Federal Direct Unsubsidized 
Stafford Loan for which the first disbursement was 
made before July 1, 2013, that is not in default in 
order to permit the borrower to obtain the interest 
rate provided under section 455(b)(8)(A). 
‘‘(2) 
PURCHASING
FEDERAL
STAFFORD 
LOANS.—The Secretary may purchase a Federal 
Stafford Loan or a Federal Unsubsidized Stafford 
Loan that is not in default and reissue such loan in 
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order to permit the borrower to obtain the interest 
rate provided under section 455(b)(8)(A). 
‘‘(3) ADMINISTRATIVE
FEE.—The Secretary 
may charge a borrower an amount not to exceed 0.5 
percent of the principal amount of the loan to be re-
issued or purchased to cover the administrative cost 
of reissuing or purchasing such loan, which amount 
shall be paid to the Secretary.’’. 
Æ 
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