To authorize borrowers of loans under the William D. Ford Federal Direct Loan Program to modify the interest rate of such loans to be equal to the interest rate for such loans at the time of modification.

Bill: 113-hr-3047
Sponsor: full_name: Rep. Pocan, Mark [D-WI-2]
Introduced: 2013-08-02
Policy area: Education
Subjects: Government lending and loan guarantees

Higher education

Interest, dividends, interest rates

Student aid and college costs
Latest action: action_date: 2013-09-13
text: Referred to the Subcommittee on Higher Education and Workforce Training.

Summaries:
action_date: 2013-08-02
action_desc: Introduced in House
text: <p>Amends title IV (Student Assistance) of the Higher Education Act of 1965 to allow a borrower of a loan under the William D. Ford Federal Direct Loan program to modify the interest rate on such a loan so that its interest rate is equal to the interest rate it would bear if first disbursed at the time of modification.</p> <p>Fixes that interest rate for the life of the loan, unless the borrower elects to modify it again.</p>

tv_txt: I 113th CONGRESS 1st Session H. R. 3047 IN THE HOUSE OF REPRESENTATIVES August 2, 2013 Mr. Pocan introduced the following bill; which was referred to the Committee on Education and the Workforce A BILL To authorize borrowers of loans under the William D. Ford Federal Direct Loan Program to modify the interest rate of such loans to be equal to the interest rate for such loans at the time of modification.

1. Borrower modification of interest rates under the William D. Ford Federal Direct Loan Program Section 455(b) of the Higher Education Act of 1965 ( 20 U.S.C. 1087e(b) ) is amended by adding at the end the following new paragraph: (10) Borrower modification of interest rate (A) Modification Notwithstanding the preceding paragraphs of this subsection, the borrower of a Federal Direct Stafford Loan, a Federal Direct Unsubsidized Stafford Loan, a Federal Direct PLUS Loan, or a Federal Direct Consolidation Loan may elect to modify the interest rate of the loan to be equal to the interest rate that would be applicable to such loan if such loan were first disbursed (or in the case of a Federal Direct Consolidation Loan, first applied for) on the date on which such borrower elects to modify the interest rate of such loan. (B) Fixed rate Except as provided in subparagraph (C), an interest rate elected under subparagraph (A) for a loan shall be fixed for the life of the loan. (C) Continuing authority to modify A borrower may elect to modify the interest rate of a loan in accordance with subparagraph (A) at any time during the life of the loan. .