IN THE SENATE OF THE UNITED STATES
June 6, 2012
Mr. Coburn (for himself and Mr. Burr) introduced the following bill; which was read twice and referred to the Committee on Health, Education, Labor, and Pensions
To amend the Higher Education Act of 1965 to reset interest rates for new student loans.
This Act may be cited as
Comprehensive Student Loan
Protection Act .
Interest rates under the Direct Loan Program
Section 455(b)(7) of the Higher Education Act of 1965 (20 U.S.C. 1087e(b)(7)) is amended by adding at the end the following:
Interest rate provision for new loans after July 1, 2012
Notwithstanding the preceding paragraphs of this subsection or subparagraph (A) or (B), for Federal Direct Stafford Loans, Federal Direct Unsubsidized Stafford Loans, and any Federal Direct PLUS Loan, for which the first disbursement is made on or after July 1, 2012, 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—
the bond equivalent rate of 10-year Treasury bills auctioned at the final auction held prior to such June 1; plus
The Secretary shall determine the applicable rate of interest under this subparagraph 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.
The applicable rate of interest determined under clause (i) for a Federal Direct Stafford Loan, a Federal Direct Unsubsidized Stafford Loan, or a Federal Direct PLUS Loan shall be fixed for the life of the Loan.
Savings for deficit reduction
Not later than 1 year after the date of enactment of this Act, the Comptroller General of the United States shall determine the savings to the Federal Government resulting from the amendment made by section 2.
Amount To be used for deficit reduction
Any savings determined under subsection (a) shall be transferred to the Treasury for deficit reduction.
Determination of budgetary effects
budgetary effects of this Act, for the purpose of complying with the Statutory
Pay-As-You-Go Act of 2010, shall be determined by reference to the latest
Budgetary Effects of PAYGO Legislation for this
Act, submitted for printing in the Congressional Record by the Chairman of the
Senate Budget Committee, provided that such statement has been submitted prior
to the vote on passage.