H.R. 4628 (112th): Interest Rate Reduction Act

Introduced:
Apr 25, 2012 (112th Congress, 2011–2013)
Sponsor:
Rep. Judy Biggert [R-IL13]
Status:
Died (Passed House)

The bill’s title was written by the bill’s sponsor. H.R. stands for House of Representatives bill.

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Status

This bill was introduced in a previous session of Congress and was passed by the House on April 27, 2012 but was never passed by the Senate.

Progress
Introduced Apr 25, 2012
Referred to Committee Apr 25, 2012
Passed House Apr 27, 2012
Votes

On Motion to Recommit with Instructions: H R 4628 To extend student loan interest rates for undergraduate Federal Direct Stafford Loans
Apr 27, 2012 12:32 p.m.
Failed 178/231

House Vote on Passage
Apr 27, 2012 12:45 p.m.
Passed 215/195

Cosponsors
none
Committees

House Education and the Workforce

House Energy and Commerce

House Budget

The committee chair determines whether a bill will move past the committee stage.

Full Title

To extend student loan interest rates for undergraduate Federal Direct Stafford Loans.

Summary

No summaries available.

Text

Read Bill Text »

Last updated May 08, 2012.
4 pages

Primary Source

View on THOMAS (The Library of Congress)

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Citation

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GovTrack’s Bill Summary

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Library of Congress Summary

The summary below was written by the Congressional Research Service, which is a nonpartisan division of the Library of Congress.

4/27/2012--Passed House without amendment.
(This measure has not been amended since it was introduced.
The summary of that version is repeated here.) Interest Rate Reduction Act - Amends title IV (Student Assistance) of the Higher Education Act of 1965 to make the 3.4% interest rate on Direct Stafford loans first disbursed to undergraduate students between July 1, 2011, and July 1, 2012, applicable to Direct Stafford loans first disbursed to undergraduate students between July 1, 2011, and July 1, 2013.
Amends the Patient Protection and Affordable Care Act to repeal provisions establishing and appropriating funds to the Prevention and Public Health Fund (a Fund to provide for expanded and sustained national investment in prevention and public health programs to improve health and help restrain the rate of growth in private and public sector health care costs).
Rescinds any unobligated balances appropriated to such Fund.

House Republican Conference Summary

The summary below was written by the House Republican Conference, which is the caucus of Republicans in the House of Representatives.

This summary can be found at http://www.gop.gov/bill/112/2/hr4628.

Background

In 2007, the College Cost Reduction and Access Act was signed into law.  In 2006, as part of their “6 for ‘06” campaign agenda, Democrats promised to cut student loan interest rates in half.

 

However, once gaining control of Congress in 2007, Democrats realized it was too costly to cut all student loan interest rates in half.  Instead, Education & Labor Committee Chairman George Miller (D-CA) and then-Speaker of the House Nancy Pelosi (D-CA) proposed temporarily reducing interest rates for undergraduate students receiving subsidized Stafford loans.

 

The College Cost Reduction and Access Act incrementally phased down interest rates for subsidized Stafford Loans made to undergraduate students over four academic years from 6.8 percent to 3.4 percent.  Per the law, interest rates are scheduled to return to 6.8 percent on July 1, 2012.

 

As the expiration date crept closer, Democrats did nothing to address the impending interest rate increase during the 111th Congress, despite taking action to terminate the private sector federal loan program to help pay for the president’s government takeover of healthcare law.

 

In 2011, the House approved H.R. 1217 with bipartisan support to repeal the Prevention and Public Health Fund – a slush fund used by the Secretary to fund her health care priorities.

Summary

H.R. 4628 would prevent interest rates on new federally subsidized Stafford Loans made to undergraduate students from increasing from 3.4 percent to 6.8 percent on July 1, 2012.  The bill would extend the 3.4 percent rate until July 1, 2013. 

 

The cost of a one-year extension of the lower rate is $5.985 billion, and in order to pay for this cost, the bill would repeal the unobligated balance of the “Prevention and Public Health Fund,” a slush fund in the president’s government takeover of health care law.   

 

The remaining savings generated from repealing the $11.9 billion slush fund will be put toward deficit reduction.

 

Cost

The cost for a one-year extension is $5.985 billion.  This is paid for by repealing the “Prevention and Public Health Fund,” a slush fund in the president’s takeover of healthcare law.    

House Democratic Caucus Summary

The House Democratic Caucus does not provide summaries of bills.

So, yes, we display the House Republican Conference’s summaries when available even if we do not have a Democratic summary available. That’s because we feel it is better to give you as much information as possible, even if we cannot provide every viewpoint.

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The bill contains the following citations to other parts of U.S. law:

United States Code

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