I 
113TH CONGRESS 
1ST SESSION H. R. 1911 
To amend the Higher Education Act of 1965 to establish interest rates 
for new loans made on or after July 1, 2013. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 9, 2013 
Mr. KLINE (for himself and Ms. FOXX) introduced the following bill; which 
was referred to the Committee on Education and the Workforce, and in 
addition to the Committee on the Budget, for a period to be subsequently 
determined by the Speaker, in each case for consideration of such provi-
sions as fall within the jurisdiction of the committee concerned 
A BILL 
To amend the Higher Education Act of 1965 to establish 
interest rates for new loans made on or after July 1, 2013. 
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 ‘‘Smarter Solutions for 
Students Act’’. 
SEC. 2. INTEREST RATES. 
Section 455(b) of the Higher Education Act of 1965 
(20 U.S.C. 1087e(b)) is amended— 
(1) in paragraph (7)— 
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(A) in the paragraph heading, by inserting 
‘‘, AND BEFORE JULY 1, 2013’’ after ‘‘2006’’; 
(B) in subparagraph (A), by inserting 
‘‘and before July 1, 2013,’’ after ‘‘2006,’’; 
(C) in subparagraph (B), by inserting 
‘‘and before July 1, 2013,’’ after ‘‘2006,’’; and 
(D) in subparagraph (C), by inserting 
‘‘and before July 1, 2013,’’ after ‘‘2006,’’; 
(2) by redesignating paragraphs (8) and (9) as 
paragraphs (9) and (10), respectively; and 
(3) by inserting after paragraph (7), the fol-
lowing: 
‘‘(8) INTEREST
RATE
PROVISION
FOR
NEW 
LOANS ON OR AFTER JULY 1, 2013.— 
‘‘(A) RATES FOR FDSL AND FDUSL.—Not-
withstanding the preceding paragraphs of this 
subsection, for Federal Direct Stafford Loans 
and Federal Direct Unsubsidized Stafford 
Loans for which the first disbursement is made 
on or after July 1, 2013, the applicable rate of 
interest shall, 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— 
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‘‘(i) the high-yield 10-year Treasury 
notes auctioned at the final auction held 
prior to such June 1; plus 
‘‘(ii) 2.5 percent, 
except that such rate shall not exceed 8.5 per-
cent. 
‘‘(B) PLUS LOANS.—Notwithstanding the 
preceding paragraphs of this subsection, for any 
Federal Direct PLUS Loan for which the first 
disbursement is made on or after July 1, 2013, 
the applicable rate of interest shall, during any 
12-month period beginning on July 1 and end-
ing on June 30, be determined on the preceding 
June 1 and be equal to— 
‘‘(i) the high-yield 10-year Treasury 
notes auctioned at the final auction held 
prior to such June 1; plus 
‘‘(ii) 4.5 percent, 
except that such rate shall not exceed 10.5 per-
cent. 
‘‘(C) 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, 2013, shall bear interest at an annual 
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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 per-
cent.’’. 
SEC. 3. BUDGETARY EFFECTS. 
(a) PAYGO SCORECARD.—The budgetary effects of 
this Act shall not be entered on either PAYGO scorecard 
maintained pursuant to section 4(d) of the Statutory Pay- 
As-You-Go Act of 2010. 
(b) SENATE PAYGO SCORECARD.—The budgetary ef-
fects of this Act shall not be entered on any PAYGO score-
card maintained for purposes of section 201 of S. Con. 
Res. 21 (110th Congress). 
Æ 
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