I 
118TH CONGRESS 
1ST SESSION H. R. 4139 
To amend the Higher Education Act of 1965 to provide for the refinancing 
of certain Federal student loans, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 14, 2023 
Mr. TURNER (for himself, Mr. NORCROSS, Mr. FITZPATRICK, and Mr. DOG-
GETT) introduced the following bill; which was referred to the Committee 
on Education and the Workforce 
A BILL 
To amend the Higher Education Act of 1965 to provide 
for the refinancing of certain Federal student loans, 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 ‘‘Student Loan Refi-
nancing Act’’. 
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TITLE I—REFINANCING 
PROGRAMS 
SEC. 101. REFINANCING PROGRAMS. 
(a) PROGRAM AUTHORITY.—Section 451(a) of the 
Higher Education Act of 1965 (20 U.S.C. 1087a(a)) is 
amended— 
(1) by striking ‘‘and (2)’’ and inserting ‘‘(2)’’; 
and 
(2) by inserting ‘‘; and (3) to make loans under 
section 460A’’ after ‘‘section 459A’’. 
(b) REFINANCING PROGRAM.—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 FFEL AND FEDERAL DIRECT 
LOANS. 
‘‘(a) IN GENERAL.—Beginning not later than 30 
days after the date of enactment of the Student Loan Re-
financing Act, the Secretary shall establish a program 
under which the Secretary, upon the receipt of an applica-
tion from a 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.— 
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‘‘(1) FEDERAL DIRECT LOANS.—Upon applica-
tion of a borrower, the Secretary shall repay a Fed-
eral Direct Stafford Loan, a Federal Direct Unsub-
sidized Stafford Loan, a Federal Direct PLUS 
Loan, or a Federal Direct Consolidation Loan of the 
borrower, with the proceeds of a refinanced Federal 
Direct Stafford Loan, a Federal Direct Unsubsidized 
Stafford Loan, a Federal Direct PLUS Loan, or a 
Federal Direct Consolidation Loan, respectively, 
issued to the borrower in an amount equal to the 
sum of the unpaid principal, accrued unpaid inter-
est, and late charges of the original loan. 
‘‘(2) REFINANCING FFEL PROGRAM LOANS AS 
REFINANCED FEDERAL DIRECT LOANS.—Upon ap-
plication of a borrower for any loan that was made, 
insured, or guaranteed under part B, 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-
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‘‘(i) RATES
FOR
UNDERGRADUATE 
FDSL.—In the case of a refinanced Federal 
Direct Stafford loan for which the original 
loan was a loan under section 428 or a 
Federal Direct Stafford loan that was 
made to an undergraduate student, the 
rate of interest on such refinanced Federal 
Direct Stafford Loan shall be equal to the 
rate of interest for a Federal Direct Staf-
ford loan made to an undergraduate stu-
dent for which the first disbursement is 
made on the date on which the refinanced 
Federal Direct Stafford Loan is made 
under this section. 
‘‘(ii) RATES FOR GRADUATE AND PRO-
FESSIONAL FDSL.—In the case of a refi-
nanced Federal Direct Stafford loan for 
which the original loan was a loan under 
section 428 or a Federal Direct Stafford 
loan that was made to a graduate or pro-
fessional student, the rate of interest on 
such refinanced Federal Direct Stafford 
Loan shall be equal to the rate of interest 
for a Federal Direct Stafford loan made to 
a graduate or professional student for 
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which the first disbursement is made on 
the date on which the refinanced Federal 
Direct Stafford Loan is made under this 
section. 
‘‘(B) FEDERAL
DIRECT
UNSUBSIDIZED 
STAFFORD LOANS.— 
‘‘(i) RATES
FOR
UNDERGRADUATE 
FDUSL.—In the case of a refinanced Fed-
eral Direct Unsubsidized Stafford loan for 
which the original loan was a loan under 
section 428H or a Federal Direct Unsub-
sidized Stafford Loan that was made to an 
undergraduate student, the rate of interest 
on such refinanced Federal Direct Unsub-
sidized Stafford Loan shall be equal to the 
rate of interest for a Federal Direct Un-
subsidized Stafford loan made to an under-
graduate student for which the first dis-
bursement is made on the date on which 
the refinanced Federal Direct Unsub-
sidized Stafford Loan is made under this 
section. 
‘‘(ii) RATES FOR GRADUATE AND PRO-
FESSIONAL FDUSL.—In the case of a refi-
nanced Federal Direct Unsubsidized Staf-
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ford loan for which the original loan was a 
loan under section 428H or a Federal Di-
rect Unsubsidized Stafford Loan that was 
made to an graduate student, the rate of 
interest on such refinanced Federal Direct 
Unsubsidized Stafford Loan shall be equal 
to the rate of interest for a Federal Direct 
Unsubsidized Stafford loan made to a 
graduate student for which the first dis-
bursement is made on the date on which 
the refinanced Federal Direct Unsub-
sidized Stafford Loan is made under this 
section. 
‘‘(C) FEDERAL DIRECT PLUS LOANS.—In 
the case of a refinanced Federal Direct PLUS 
Loan for which the original loan was a loan 
under section 428B or a Federal Direct PLUS 
Loan, the rate of interest on such refinanced 
Federal Direct PLUS loan shall be equal to the 
rate of interest for a Federal Direct PLUS loan 
for which the first disbursement is made on the 
date on which the refinanced Federal Direct 
PLUS loan is made under this section. 
‘‘(D) CONSOLIDATION LOANS.—In the case 
of a refinanced Federal Direct Consolidation 
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Loan for which the original loan was a loan 
under section 428C or a Federal Direct Con-
solidation Loan, the rate of interest of such re-
financed Federal Direct Consolidation Loan 
shall be equal to the lower of a rate calculated 
in accordance with paragraph (2). 
‘‘(2) INTEREST
RATES
FOR
CONSOLIDATION 
LOANS.— 
‘‘(A) 
METHOD
OF
CALCULATION.—In 
order to determine the interest rate for any re-
financed Federal Direct Consolidation Loan 
under paragraph (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 
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 
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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 refinanced Federal Direct Con-
solidation 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) FEDERAL
DIRECT
STAFFORD 
LOANS.— 
‘‘(I) UNDERGRADUATE
FDSL.— 
The interest rate for any component 
loan that is a loan under section 428 
or a Federal Direct Stafford Loan 
made to an undergraduate student 
shall be a rate equal to the lesser of— 
‘‘(aa) the rate of interest for 
a refinanced Federal Direct Staf-
ford loan determined under para-
graph (1)(A)(i) if such loan were 
made on the date on which the 
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