Student Loan Interest Rate Parity Act

Bill: 114-hr-5567
Sponsor: full_name: Rep. Salmon, Matt [R-AZ-5]
Introduced: 2016-06-22
Policy area: Education
Subjects: Government lending and loan guarantees

Higher education

Interest, dividends, interest rates

Student aid and college costs
Latest action: action_date: 2016-09-19
text: Referred to the Subcommittee on Higher Education and Workforce Training.

Summaries:
action_date: 2016-06-22
action_desc: Introduced in House
text: <p><b>Student Loan Interest Rate Parity Act</b></p> <p>This bill amends title IV (Student Assistance) of the Higher Education Act of 1965 to reduce the interest rates on Federal Direct Unsubsidized Loans and Federal Direct PLUS Loans disbursed on or after July 1, 2016.</p>

tv_txt: I 114th CONGRESS 2d Session H. R. 5567 IN THE HOUSE OF REPRESENTATIVES June 22, 2016 Mr. Salmon 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 require that all Federal Direct Stafford Loans, Federal Direct Unsubsidized Stafford Loans, and Federal Direct PLUS Loans have the same rates of interest.

1. Short title This Act may be cited as the Student Loan Interest Rate Parity Act . 2. Interest rates Section 455(b)(8) of the Higher Education Act of 1965 ( 20 U.S.C. 1087e(b)(8) ) is amended— (1) in subparagraph (B), by inserting and before July 1, 2016, after 2013, ; (2) in subparagraph (C), by inserting and before July 1, 2016, after 2013, ; (3) by redesignating subparagraphs (E) and (F) as subparagraphs (G) and (H), respectively; and (4) by inserting after subparagraph (D) the following: (E) Revised rates for graduate and professional FDSL Notwithstanding the preceding paragraphs of this subsection, for Federal Direct Unsubsidized Stafford Loans issued to graduate or professional students, for which the first disbursement is made on or after July 1, 2016, the applicable rate of interest shall be determined under subparagraph (B)— (i) by substituting 2.05 for 3.6 ; and (ii) by substituting 8.25 for 9.5 . (F) Revised rates for Federal Direct PLUS Loans Notwithstanding the preceding paragraphs of this subsection, for Federal Direct PLUS Loans, for which the first disbursement is made on or after July 1, 2016, the applicable rate of interest shall be determined under subparagraph (C)— (i) by substituting 2.05 for 4.6 ; and (ii) by substituting 8.25 for 10.5 . .