Instructions: In this task, you are given text for US Congressional and California state bills, your task is to generate a summary for this bill.
Input: SECTION 1. SHORT TITLE.

This Act may be cited as the ''Student Loan Fairness Act of 2003''.

SEC. 2. REMOVAL OF PROHIBITION ON REFINANCING CONSOLIDATION LOANS.

Section 428C(a)(3) the Higher Education Act of 1965 (20 U.S.C.
1078-3(a)(3)) is amended--
(1) by striking subparagraph (B);
(2) in subparagraph (C), by striking ''subparagraphs (A)
and (B)'' and inserting ''subparagraph (A)''; and
(3) by redesignating subparagraph (C) as subparagraph (B).

SEC. 3. STUDENT LOAN BORROWER CHOICE OF LOAN CONSOLIDATOR.

(a) Selection of Lender.--Section 428C(b)(1)(A) of the Higher
Education Act of 1965 (20 U.S.C. 1078-3(b)(1)(A)) is amended by
striking ''and (i) the lender holds'' and all that follows through
''selected for consolidation)''.
(b) Information About Consolidation Loans.--
(1) Information from lenders.--Section 428C(b)(1) of such
Act is further amended--
(A) by striking ''and'' at the end of subparagraph
(E);
(B) by redesignating subparagraph (F) as
subparagraph (G); and
(C) by inserting after subparagraph (E) the
following new subparagraph:
''(F) that the lender will provide to each
applicant for a consolidation loan a clear and
conspicuous notice, in such form as the Secretary shall
prescribe, describing, in relation to the borrower's
reported current loan balance and the likely interest
rate estimated by the lender for the consolidation
loan--
''(i) the effects of a consolidation loan
and its available repayment plans on the
borrower's interest rate, the amount of his or
her monthly and total payments, total interest
accrued, the length of the repayment term;
''(ii) the ability of the student borrower
to pre-pay loans; and
''(iii) the differences between variable
and fixed interest rates; and''.
(2) Information from institutions.--Section 485(b)(1)(A) of
such Act (20 U.S.C. 1092(b)) is amended--
(A) by striking ''and'' at the end of clause (i);
(B) by striking the period at the end of clause
(ii) and inserting ''; and''; and
(C) by adding at the end the following new clause:
''(iii) providing to the borrower of a loan made under part
B, D, or E, a clear and conspicuous notice, in such form as the
Secretary shall prescribe, describing the effect of using a
consolidation loan to discharge the borrower's student loans,
and including, with respect to a series of loan amounts
ranges--
''(I) the differences between fixed and variable
interest rates;
''(II) the effects of consolidation loan and its
available repayment plans on the borrower's interest
rate, the amount of his or her monthly and total
payments, total interest accrued, and the length of
repayment term; and
''(III) the ability of the student borrower to
prepay loans.''.

SEC. 4. INTEREST RATES ON CONSOLIDATED AND RECONSOLIDATED LOANS.

(a) Interest Rate Changes.--Section 427A of the Higher Education
Act of 1965 (20 U.S.C. 1077a) is amended by striking subsections (k)
and (l) and inserting the following:
''(k) Interest Rates for New Loans on or After October 1, 1998, and
Before January 1, 2004.--
''(1) In general.--Notwithstanding subsection (h) and
subject to paragraph (2) of this subsection, with respect to
any loan made, insured, or guaranteed under this part (other
than a loan made pursuant to section 428B or 428C) for which
the first disbursement is made on or after October 1, 1998, and
before January 1, 2004, the applicable rate of interest shall,
during any 12-month period beginning on July 1 and ending on
June 30, be determined on the preceding June 1 and be equal
to--
''(A) the bond equivalent rate of 91-day Treasury
bills auctioned at the final auction held prior to such
June 1; plus
''(B) 2.3 percent,
except that such rate shall not exceed 8.25 percent.
''(2) In school and grace period rules.--Notwithstanding
subsection (h), with respect to any loan under this part (other
than a loan made pursuant to section 428B or 428C) for which
the first disbursement is made on or after October 1, 1998, and
before January 1, 2004, the applicable rate of interest for
interest which accrues--
''(A) prior to the beginning of the repayment
period of the loan; or
''(B) during the period in which principal need not
be paid (whether or not such principal is in fact paid)
by reason of a provision described in section
427(a)(2)(C) or 428(b)(1)(M),
shall be determined under paragraph (1) by substituting '1.7
percent' for '2.3 percent'.
''(3) PLUS loans.--Notwithstanding subsection (h), with
respect to any loan under section 428B for which the first
disbursement is made on or after October 1, 1998, and before
January 1, 2004, the applicable rate of interest shall be
determined under paragraph (1)--
''(A) by substituting '3.1 percent' for '2.3
percent'; and
''(B) by substituting '9.0 percent' for '8.25
percent'.
''(4) Consolidation loans.--With respect to any
consolidation loan under section 428C for which the application
is received by an eligible lender on or after October 1, 1998,
and before January 1, 2004, the applicable rate of interest
shall be at an annual rate on the unpaid principal balance of
the loan that is equal to the lesser of--
''(A) the weighted average of the interest rates on
the loans consolidated, rounded to the nearest higher
one-eighth of 1 percent; or
''(B) 8.25 percent.
''(5) Consultation.--The Secretary shall determine the
applicable rate of interest under this subsection after
consultation with the Secretary of the Treasury and shall
publish such rate in the Federal Register as soon as
practicable after the date of determination.
''(l) Interest Rates for New Loans on or After January 1, 2004.--
''(1) In general.--Notwithstanding subsection (h), with
respect to any loan made, insured, or guaranteed under this
part (other than a loan made pursuant to section 428B or 428C)
for which the first disbursement is made on or after January 1,
2004, the applicable rate of interest shall, during any 12-
month period beginning on July 1 and ending on June 30, be
determined on the preceding June 1 and be equal to--
''(A) the bond equivalent rate of 91-day Treasury
bills auctioned at the final auction held prior to such
June 1; plus
''(B) 2.3 percent,
except that such rate shall not exceed 6.8 percent.
''(2) PLUS loans.--Notwithstanding subsection (h), with
respect to any loan under section 428B for which the first
disbursement is made on or after January 1, 2004, the
applicable rate of interest shall be determined under paragraph
(1)--
''(A) by substituting '3.1 percent' for '2.3
percent'; and
''(B) by substituting '7.5 percent' for '6.8
percent'.
''(3) Consolidation loans.--With respect to any
consolidation loan under section 428C for which the application
is received by an eligible lender on or after January 1, 2004,
the applicable rate of interest shall, during any 12-month
period beginning on July 1 and ending on June 30, be determined
on the preceding June 1 and be equal to--
''(A) the bond equivalent rate of 91-day Treasury
bills auctioned at the final auction held prior to such
June 1; plus
''(B) 2.3 percent,
except that such rate shall not exceed 6.8 percent.''.
(b) Offsetting Origination Fees.--Section 438(c) of the Higher
Education Act of 1965 (20 U.S.C. 1087-1(c)) is amended--
(1) in paragraph (1), by inserting ''or paragraph (7)''
after ''paragraph (2)'';
(2) in paragraph (2), by striking ''paragraph (8)'' and
inserting ''paragraph (9)'';
(3) by redesignating paragraphs (7) and (8) as paragraphs
(8) and (9), respectively; and
(4) by inserting after paragraph (6) the following new
paragraph:
''(7) Consolidation loans.--With respect to any loans made
under section 428C on or after January 1, 2004, each eligible
lender under this part is authorized to charge the borrower an
origination fee of not to exceed 0.5 percent of the principal
amount of the loan. Except as provided in paragraph (9), a
lender that charges an origination fee under this paragraph
shall assess the same fee to all borrowers.''.
(c) Special Allowance Conforming Changes.--Section 438(b)(2) of the
Higher Education Act of 1965 (20 U.S.C. 1087-1(b)(2)) is amended by
striking ''July 1, 2006'' each place it appears in clauses (ii), (v),
and (vii) of subparagraph (I), including in the headings of such
clauses, and inserting ''January 1, 2004''.
(d) Additional Conforming Amendments.--Section 428C(c)(1) of the
Higher Education Act of 1965 (20 U.S.C. 1078-3(c)(1)) is amended by
striking ''July 1, 2006'' each place it appears and inserting ''January
1, 2004''.
Output:
Student Loan Fairness Act of 2003 - Amends the Higher Education Act of 1965 to revise student aid requirements for consolidation loans.

Repeals a prohibition against refinancing consolidation loans.

Allows borrowers to select lenders of consolidation loans. Requires lenders and institutions to provide certain information on consolidation loans to applicants.

Revises interest rates on consolidated and reconsolidated loans.