Detailed 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.
Problem:SECTION 1. SHORT TITLE.

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

SEC. 2. AUTHORITY TO REFINANCE EXISTING CONSOLIDATION LOANS.

(a) FFEL Consolidation Loans.--Section 428C(a)(3)(B) of the Higher
Education Act of 1965 (20 U.S.C. 1078-3(a)(3)(B)) is amended by adding
at the end the following new clause:
''(ii) Notwithstanding clause (i) of this subparagraph, a
borrower of a consolidation loan on which the interest is
established at a fixed rate under section 427A, 428C(c), or 455
may obtain a subsequent consolidation loan for the purposes of
refinancing such earlier consolidation loan at a variable rate
of interest under section 427A(m) or 455(b)(8), except that the
authority to refinance a consolidation loan under this clause
shall not apply to a consolidation loan that was used
exclusively to repay loans made under section 428B or Federal
Direct PLUS Loans (or both such loans).''.
(b) Parallel Terms for Federal Direct Consolidation Loans.--Section
455(a) of the Higher Education Act of 1965 (20 U.S.C. 1087e(a)) is
amended--
(1) in paragraph (1), by inserting ''428C,'' after
''428B,''; and
(2) in paragraph (2)--
(A) by striking ''and'' at the end of subparagraph
(B);
(B) by redesignating subparagraph (C) as
subparagraph (D); and
(C) by inserting after subparagraph (B) the
following:
''(C) section 428C shall be known as 'Federal
Direct Consolidation Loans'.''.

SEC. 3. AVAILABILITY OF VARIABLE INTEREST RATE CONSOLIDATION LOANS.

(a) FFEL Consolidation Loans.--Section 427A of the Higher Education
Act of 1965 (20 U.S.C. 1077a) is amended--
(1) by redesignating subsection (m) and (n) as subsections
(n) and (o), respectively; and
(2) by inserting after subsection (l) the following:
''(m) Variable Interest Rate Consolidation Loans.--
''(1) Variable rate.--Notwithstanding subsections (h), (k),
and (l), with respect to any loan made pursuant to section 428C
for which the first disbursement is made on or after the date
of enactment of the Student Loan Fairness Consolidation Act of
2003, 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) Recovery of excess interest.--If, with respect to a
consolidation loan on which the applicable interest rate is
determined under this subsection, the applicable interest rate
for any 3-month period exceeds the special allowance rate
applicable to such loan under section 438(b)(2)(I) for such
period, then an adjustment shall be made--
''(A) by calculating the excess interest in the
amount computed under paragraph (3) of this subsection;
and
''(B) by crediting the excess interest to the
Government.
''(3) Amount of adjustment.--The amount of any adjustment
of interest on a loan to be made under this subsection for any
quarter shall be equal to--
''(A) the applicable interest rate minus the
special allowance rate determined under section
438(a)(2)(I); multiplied by
''(B) the average daily principal balance of the
loan (not including unearned interest added to
principal) during such calendar quarter; divided by
''(C) four.
''(4) Inapplicability to consolidation loans used to repay
plus loans.--The provisions of paragraph (1) of this subsection
shall not apply to a consolidation loan that was used
exclusively to repay loans made under section 428B or Federal
Direct PLUS Loans (or both such loans).''.
(b) Federal Direct Consolidation Loans.--Section 455(b) of the
Higher Education Act of 1965 (20 U.S.C. 1087e(b)) is amended--
(1) by redesignating paragraphs (8) and (9) as paragraphs
(9) and (10), respectively; and
(2) by inserting after paragraph (7) the following:
''(8) Variable interest rate consolidation loans.--
''(A) Variable rate.--Notwithstanding the preceding
paragraphs of this subsection, with respect to any
Federal Direct Consolidation Loan for which the first
disbursement is made on or after the date of enactment
of the Student Loan Fairness Consolidation Act of 2003,
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--
''(i) the bond equivalent rate of 91-day
Treasury bills auctioned at the final auction
held prior to such June 1; plus
''(ii) 2.3 percent,
except that such rate shall not exceed 8.25 percent.
''(B) Inapplicability to consolidation loans used
to repay plus loans.--The provisions of this subsection
shall not apply to a consolidation loan that was used
exclusively to repay loans made under section 428B or
Federal Direct PLUS Loans (or both such loans).''.
(c) Conforming Amendment.--Section 438(b)(2)(I) is amended by
striking ''section 427A(k)(4) or (l)(3)'' each place it appears in
clauses (iv) and (vi) and inserting ''section 427A(k)(4), (l)(3), or
(m)''.
Solution:
Student Loan Fairness Consolidation Act of 2003 - Amends the Higher Education Act of 1965 to revise student aid requirements for Federal consolidation loans under the Federal Family Education Loan program, and establish parallel requirements under a Federal Direct Consolidation Loan program, to: (1) allow borrowers to refinance existing consolidation loans; and (2) make available variable interest rate consolidation loans. Excludes consolidation loans for repaying Federal PLUS loans (taken out by parents of students) from such provisions for refinancing and variable interest rates.