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Text of the Comprehensive Student Loan Protection Act

This bill was introduced on June 6, 2012, in a previous session of Congress, but was not enacted. The text of the bill below is as of Jun 6, 2012 (Introduced).

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Source: GPO

II

112th CONGRESS

2d Session

S. 3266

IN THE SENATE OF THE UNITED STATES

June 6, 2012

(for himself and Mr. Burr) introduced the following bill; which was read twice and referred to the Committee on Health, Education, Labor, and Pensions

A BILL

To amend the Higher Education Act of 1965 to reset interest rates for new student loans.

1.

Short title

This Act may be cited as the Comprehensive Student Loan Protection Act .

2.

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:

(E)

Interest rate provision for new loans after July 1, 2012

(i)

In general

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—

(I)

the bond equivalent rate of 10-year Treasury bills auctioned at the final auction held prior to such June 1; plus

(II)

3.0 percent.

(ii)

Consultation

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.

(iii)

Rate

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.

.

3.

Savings for deficit reduction

(a)

In general

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.

(b)

Amount To be used for deficit reduction

Any savings determined under subsection (a) shall be transferred to the Treasury for deficit reduction.

4.

Determination of budgetary effects

The 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 statement titled 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.