Title: Bank on Students Coronavirus Emergency Loan Refinancing Act of 2020
Policy area: Education

Summary:
Bank on Students Coronavirus Emergency Loan Refinancing Act of 2020
This bill establishes refinancing programs for federal and private student loans. Specifically, it allows certain borrowers to refinance their federal student loans down to lower interest rates, and creates the Federal Direct Refinanced Private Loan to allow certain borrowers to refinance their private student loans.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 4141 Introduced in Senate (IS)]

<DOC>






116th CONGRESS
  2d Session
                                S. 4141

To refinance Federal and private student loans, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              July 1, 2020

 Ms. Warren (for herself, Ms. Baldwin, Mr. Bennet, Mr. Blumenthal, Mr. 
  Booker, Mr. Brown, Ms. Cantwell, Mr. Cardin, Mr. Casey, Ms. Cortez 
Masto, Ms. Duckworth, Mr. Durbin, Mrs. Feinstein, Mrs. Gillibrand, Ms. 
Harris, Ms. Hassan, Mr. Heinrich, Ms. Hirono, Ms. Klobuchar, Mr. Leahy, 
  Mr. Manchin, Mr. Markey, Mr. Menendez, Mr. Merkley, Mr. Murphy, Mr. 
 Peters, Mr. Reed, Mr. Sanders, Mrs. Shaheen, Ms. Smith, Ms. Stabenow, 
 Mr. Udall, Mr. Van Hollen, Mr. Whitehouse, and Mr. Wyden) introduced 
the following bill; which was read twice and referred to the Committee 
               on Health, Education, Labor, and Pensions

_______________________________________________________________________

                                 A BILL


 
To refinance Federal and private student loans, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Bank on Students Coronavirus 
Emergency Loan Refinancing Act of 2020''.

SEC. 2. REFINANCING PROGRAM.

    (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 and section 460B'' 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 FEDERAL DIRECT LOANS AND OTHER FEDERAL LOANS.

    ``(a) Definitions.--In this section:
            ``(1) FFEL, perkins, or phsa student loan.--The term `FFEL, 
        Perkins, or PHSA student loan' means a loan--
                    ``(A) 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;
                    ``(B) made under part E; or
                    ``(C) made under--
                            ``(i) subpart II of part A of title VII of 
                        the Public Health Service Act (42 U.S.C. 292q 
                        et seq.); or
                            ``(ii) part E of title VIII of the Public 
                        Health Service Act (42 U.S.C. 297a et seq.).
            ``(2) Qualified borrower.--The term `qualified borrower' 
        means a borrower of a loan under this part, or FFEL, Perkins, 
        or PHSA student loan, for which the first disbursement was 
        made, or the application for a consolidation loan was received, 
        before July 1, 2020.
    ``(b) In General.--Beginning not later than 90 days after the date 
of enactment of the Bank on Students Coronavirus Emergency Loan 
Refinancing Act of 2020, the Secretary shall establish a program under 
which the Secretary makes a loan under this part, in accordance with 
the provisions of this section, in order to permit a qualified borrower 
to obtain the interest rate provided under subsection (d).
    ``(c) Refinancing Direct Loans.--
            ``(1) Federal direct loans.--
                    ``(A) In general.--By not later than 120 days after 
                the date of enactment of the Bank on Students 
                Coronavirus Emergency Loan Refinancing Act of 2020, the 
                Secretary shall repay a Federal Direct Stafford Loan, a 
                Federal Direct Unsubsidized Stafford Loan, a Federal 
                Direct PLUS Loan, or a Federal Direct Consolidation 
                Loan of the qualified borrower, for which the first 
                disbursement was made, or the application for the 
                consolidation loan was received, before July 1, 2020, 
                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 under this section in an amount equal to the 
                sum of the unpaid principal, accrued unpaid interest, 
                and late charges of the original loan.
                    ``(B) Information.--The Secretary shall notify each 
                qualified borrower of a loan refinanced under 
                subparagraph (A) regarding the refinancing and the 
                benefits the refinancing provides to the qualified 
                borrower.
            ``(2) Refinancing ffel, perkins, or phsa student loans as 
        refinanced federal direct loans.--Upon application of a 
        qualified borrower of any FFEL, Perkins, or PHSA student loan, 
        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 holder of the FFEL, Perkins, or PHSA 
                student loan, in order to discharge the borrower from 
                any remaining obligation with respect to the original 
                loan.
                    ``(B) Any Federal student loan made under this 
                section that was originally a loan described in 
                subsection (a)(1)(A) and that was made, insured, or 
                guaranteed--
                            ``(i) under section 428 shall be a Federal 
                        Direct Stafford Loan;
                            ``(ii) under section 428B shall be a 
                        Federal Direct PLUS Loan;
                            ``(iii) under section 428H shall be a 
                        Federal Direct Unsubsidized Stafford Loan; and
                            ``(iv) under section 428C shall be a 
                        Federal Direct Consolidation Loan.
                    ``(C) Any Federal student loan made under this 
                section that was originally a loan described in 
                subparagraph (B) or (C) of subsection (a)(1) shall be a 
                Federal Direct Consolidation Loan.
                    ``(D) The interest rate for each loan made by the 
                Secretary under this paragraph shall be the rate 
                provided under subsection (d).
    ``(d) Interest Rates.--
            ``(1) In general.--The interest rate for the refinanced 
        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 Federal Direct 
                Stafford loan, or a Federal Direct Unsubsidized 
                Stafford Loan, that was issued to an undergraduate 
                student, 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;
                    ``(B) in any case where the original loan was a 
                loan under section 428 or 428H, a Federal 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 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;
                    ``(C) in any case where the original loan was a 
                loan under section 428B or a Federal Direct PLUS Loan, 
                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;
                    ``(D) in any case where the original loan was a 
                loan under section 428C or a Federal Direct 
                Consolidation Loan, a rate calculated in accordance 
                with paragraph (2); and
                    ``(E) in any case where the original loan was a 
                Federal student loan described in subparagraph (B) or 
                (C) of subsection (a)(1), the lesser of--
                            ``(i)(I) in any case where the original 
                        loan was issued to an undergraduate student, 
                        the rate that applies under subparagraph (A); 
                        or
                            ``(II) in any case where the original loan 
                        was issued to a graduate or professional 
                        student, the rate that applies under 
                        subparagraph (B); or
                            ``(ii) the original interest rate of the 
                        loan.
            ``(2) Interest rates for refinanced consolidation loans.--
                    ``(A) Method of calculation.--In order to determine 
                the interest rate for any refinanced 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 balance 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 interest 
                        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 
                        calculated under clause (ii) as the interest 
                        rate for the refinanced Federal Direct 
                        Consolidation 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 Unsubsidized Stafford 
                        Loan, that is issued to an undergraduate 
                        student 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 
                                undergraduate 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.
                            ``(ii) The interest rate for any loan under 
                        section 428 or 428H, Federal Direct Stafford 
                        Loan, or Federal Direct Unsubsidized 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 ending 
                                on June 30, 2021; or
                                    ``(II) the original interest rate 
                                of the component loan.
                            ``(iv) The interest rate for any loan under 
                        part E of 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 component 
                        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 interest 
        determined under paragraph (1) for a refinanced 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 section.
    ``(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 repayment period.--
        Refinancing a loan under this section shall not result in the 
        extension of the duration of the repayment period of the loan, 
        and the borrower 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).
            ``(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 
        subparagraph (B) or (C) of subsection (a)(1)--
                    ``(A) the refinanced Federal Direct Consolidation 
                Loan shall have the same terms and conditions as a 
                Federal Direct Consolidation Loan, except as otherwise 
                provided in this section; and
                    ``(B) the Secretary may adjust such terms and 
                conditions as necessary to enable the borrower to 
                access loan forgiveness or other benefits available to 
                the borrower under the loan before 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 Consumer 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 refinancing. The campaign 
shall include the following activities:
            ``(1) Developing consumer information materials 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 Secretary, in consultation with the Director 
        of the Bureau 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 postsecondary 
                educational expenses for an eligible program at an 
                institution of higher education participating in the 
                loan program under this part, as of the date that the 
                loan was disbursed.
            ``(2) Federal direct refinanced private loan.--The term 
        `Federal Direct Refinanced Private 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 `qualified borrower' 
        means an individual who has an eligible private education loan.
    ``(b) Program Authorized.--
            ``(1) In general.--The Secretary, in consultation with the 
        Secretary of the Treasury, shall carry out a program under 
        which the Secretary, upon application by a qualified borrower 
        who has an eligible private education loan, shall issue such 
        borrower a loan under this part in accordance with the 
        following:
                    ``(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 private 
                educational lender of the private education 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 section 
                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 
        consultation with the Secretary of the Treasury and the 
        Director of the Bureau of Consumer Financial Protection, shall 
        establish eligibility requirements to preclude 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 Refinanced 
                Private Loan for a private education loan originally 
                issued for undergraduate postsecondary 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 Refinanced 
                Private Loan for a private education loan originally 
                issued for graduate or professional degree 
                postsecondary educational expenses, a rate equal to 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.
            ``(2) Combined undergraduate and graduate study loans.--If 
        a Federal Direct Refinanced Private Loan is for a private 
        education loan originally issued for both undergraduate and 
        graduate or professional postsecondary educational expenses, 
        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 interest 
        determined under this subsection for a Federal 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 
Private Loan, shall not be included in calculating a borrower's annual 
or aggregate loan limits under section 428 or 428H.
    ``(e) Special Rule for Eligibility for Service-Related Repayment.--
            ``(1) In general.--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 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 Refinancing 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 educational lenders report 
        the data described in paragraph (2) to the Secretary, to 
        Congress, to the Secretary 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 accordance with paragraph 
        (1) shall include each of the following about private education 
        loans (as defined in section 140(a) of the Truth in Lending Act 
        (15 U.S.C. 1650(a))):
                    ``(A) The total amount of private education loan 
                debt the lender holds.
                    ``(B) The total number of private education loan 
                borrowers the lender serves.
                    ``(C) The average interest rate on the outstanding 
                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 lender that is in 
                default.
                    ``(F) The proportions of outstanding private 
                education loan borrowers who are 30, 60, and 90 days 
                delinquent.
                    ``(G) The proportions of outstanding private 
                education loan volume that is 30, 60, and 90 days 
                delinquent.
    ``(g) Notification to Borrowers.--The Secretary, 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.''.
    (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 exception of a Federal Consolidation Loan) that 
        is refinanced under section 460A has made monthly payments for 
        purposes of subsection (b)(7), the Secretary shall deem the 
        period to include all monthly payments made for the original 
        loan, and all monthly payments made for the refinanced loan, 
        that otherwise meet the requirements of this section.
            ``(2) Refinanced federal direct consolidation loans.--In 
        calculating the period of time during which a borrower of a 
        Federal Consolidation 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 history to 
                identify each component loan of such Federal Direct 
                Consolidation Loan;
                    ``(B) for each such component loan--
                            ``(i) calculate the weighted factor of the 
                        component loan, which shall be the factor that 
                        represents the portion of such Federal Direct 
                        Consolidation Loan that is attributable to such 
                        component loan; and
                            ``(ii) determine the number of qualifying 
                        monthly payments made on such component loan 
                        before consolidation;
                    ``(C) calculate the number of qualifying monthly 
                payments determined under subparagraph (B)(ii) with 
                respect to a component loan that shall be deemed as 
                qualifying monthly payments made on the Federal Direct 
                Consolidation Loan by multiplying--
                            ``(i) the weighted factor of such component 
                        loan as determined under subparagraph (B)(i); 
                        by
                            ``(ii) the number of qualifying monthly 
                        payments made on such component loan as 
                        determined under subparagraph (B)(ii); and
                    ``(D) calculate and inform the borrower of the 
                total number of qualifying monthly payments with 
                respect to the component loans of the Federal Direct 
                Consolidation Loan that shall be deemed as qualifying 
                monthly payments made on the refinanced Federal 
                Consolidation 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 number.
            ``(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 
        Secretary shall include only payments--
                    ``(A) that are made after the date of the issuance 
                of the Federal Direct Refinanced Private Loan; and
                    ``(B) that otherwise meet the requirements of this 
                section.''.
    (d) Conforming Amendments.--The Higher Education 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 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,''; and
                    (B) in subsection (m)(3)(A), by striking ``or 
                Federal Direct Unsubsidized Stafford Loan,'' and 
                inserting ``Federal Direct Unsubsidized Stafford Loan, 
                or Federal Direct Refinanced 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
                            (ii) in paragraph (2), by inserting ``a 
                        Federal Direct Refinanced Private Loan,'' after 
                        ``a Federal Direct Unsubsidized Stafford 
                        Loan,''.
    (e) Effective Date.--The amendments made by this section shall take 
effect on July 1, 2020.
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