H. R. 649
IN THE HOUSE OF REPRESENTATIVES
February 2, 2015
Mr. Pocan (for himself, Mr. Lowenthal, Ms. Schakowsky, Mr. Cartwright, Mr. Schrader, Ms. Wilson of Florida, Ms. Chu of California, Mr. Ellison, Mr. Kind, Mr. Cohen, and Ms. Brownley of California) introduced the following bill; which was referred to the Committee on Education and the Workforce
To authorize borrowers of loans under the William D. Ford Federal Direct Loan Program to modify the interest rate of such loans to be equal to the interest rate for such loans at the time of modification.
This Act may be cited as the
Student Loan Refinancing Act.
Borrower modification of interest rates under the William D. Ford Federal Direct Loan Program
Section 455(b) of the Higher Education Act of 1965 (20 U.S.C. 1087e(b)) is amended by adding at the end the following new paragraph:
Borrower modification of interest rate
Notwithstanding the preceding paragraphs of this subsection, the borrower of a Federal Direct Stafford Loan, a Federal Direct Unsubsidized Stafford Loan, a Federal Direct PLUS Loan, or a Federal Direct Consolidation Loan may elect to modify the interest rate of the loan to be equal to the interest rate that would be applicable to such loan if such loan were first disbursed (or in the case of a Federal Direct Consolidation Loan, first applied for) on the date on which such borrower elects to modify the interest rate of such loan.
Except as provided in subparagraph (C), an interest rate elected under subparagraph (A) for a loan shall be fixed for the life of the loan.
Continuing authority to modify
A borrower may elect to modify the interest rate of a loan in accordance with subparagraph (A) at any time during the life of the loan.