[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 10159 Introduced in House (IH)]
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118th CONGRESS
2d Session
H. R. 10159
To amend the Higher Education Act of 1965 to lower the interest rate on
Federal student loans to 1 percent.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
November 18, 2024
Mr. Lawler introduced the following bill; which was referred to the
Committee on Education and the Workforce
_______________________________________________________________________
A BILL
To amend the Higher Education Act of 1965 to lower the interest rate on
Federal student loans to 1 percent.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Affordable Loans for Students Act''.
SEC. 2. PROGRAM AUTHORITY.
Section 451(a) of the Higher Education Act of 1965 (20 U.S.C.
1087a(a)) is amended--
(1) by striking ``and (2)'' and inserting ``(2)''; and
(2) by inserting ``; and (3) to make loans under section
460A(b)'' after ``section 459A''.
SEC. 3. PROGRAM FOR THE LOAN MODIFICATION OF ELIGIBLE FEDERAL LOANS
HELD BY THE SECRETARY, AND REFINANCING OF OTHER FEDERAL
STUDENT LOANS.
(a) Loan Modification and Refinancing.--Part D of title IV of the
Higher Education Act of 1965 (20 U.S.C. 1087a et seq.) is amended by
adding at the end the following:
``SEC. 460A. PROGRAM FOR THE LOAN MODIFICATION OF ELIGIBLE FEDERAL
LOANS HELD BY THE SECRETARY, AND REFINANCING OF OTHER
FEDERAL STUDENT LOANS.
``(a) Federal Direct Loan Modification.--The Secretary shall
establish and implement, with respect to each borrower of an eligible
Federal loans held by the Secretary, procedures to modify, without any
action from the borrower, the terms of such loan so that beginning on
the first July 1 after the date of enactment of the Affordable Loans
for Students Act, the applicable rate of interest shall be 1.0 percent
on the unpaid principal balance of the loan.
``(b) Refinancing Eligible Federal Loans Not Held by the Secretary
as Federal Direct Consolidation Loans.--
``(1) In general.--The Secretary shall establish and
implement, with respect to each borrower of an eligible Federal
loan not held by the Secretary, procedures to refinance such
loan in accordance with the requirements of paragraph (2) and
without any action from the borrower, except that such borrower
may opt out of such procedures with respect to such loan.
``(2) Procedures.--In refinancing an eligible Federal loan
not held by the Secretary with respect to a borrower of such
loan, the Secretary shall carry out the following:
``(A) The Secretary shall make a Federal Direct
Consolidation Loan under this subsection, in an amount
equal to the sum of the unpaid principal, accrued
unpaid interest, and late charges of the eligible
Federal loan not held by the Secretary.
``(B) The Secretary shall pay the proceeds of such
Federal Direct Consolidation Loan to the holder of the
eligible Federal non-direct loan, in order to discharge
the borrower from any remaining obligation with respect
to such eligible Federal loan not held by the
Secretary.
``(3) Terms and conditions of refinanced loans.--
``(A) In general.--A Federal Direct Consolidation
Loan made under this subsection shall have the same
terms and conditions as a Federal Direct Consolidation
Loan that was not made under this subsection, except--
``(i) that the Secretary may adjust such
terms and conditions as necessary to enable the
borrower to access loan forgiveness or other
benefits available to the borrower under the
loan before refinancing under this subsection,
in any case where such benefits are more
generous than provided under a Federal Direct
Consolidation Loan; and
``(ii) as otherwise provided in this
subsection.
``(B) No origination fees.--Notwithstanding section
455(c), the Secretary may not charge a borrower of a
loan made under this subsection an origination fee for
such loan.
``(C) Interest rate.--The applicable rate of
interest for a loan made under this subsection shall be
1.0 percent on the unpaid principal balance of the
loan.
``(D) No automatic extension of repayment period.--
A loan made under this subsection shall not result in
the extension of the duration of the repayment period
of the original loan, and the borrower shall retain the
same repayment term that was in effect on the original
loan. Nothing in this paragraph shall be construed to
prevent a borrower from electing a different repayment
plan at any time in accordance with section 455(d)(3).
``(E) Rule of construction.--Nothing in this
section shall be construed to--
``(i) prohibit a borrower of an eligible
Federal loan not held by the Secretary from
consolidating such a loan with any other loan
eligible for consolidation under this section
into a single consolidation loan under this
section; or
``(ii) require such a borrower to
consolidate any such loan with any other loan
eligible for consolidation under this section
into a single consolidation loan under this
section.
``(c) Report.--Not later than 180 days after the second July 1
after the date of enactment of the Affordable Loans for Students Act,
and on an annual basis thereafter, the Secretary shall submit a report
to the authorizing committees that includes--
``(1) the total number of borrowers whose loans have been
modified or refinanced under this section during the preceding
year; and
``(2) the number of such borrowers who are delinquent in
making payments on such a loan.
``(d) Definitions.--In this section:
``(1) Eligible federal loan held by the secretary.--The
term `eligible Federal loan held by the Secretary' means--
``(A) any loan made under this part, and first
disbursed before the first July 1 after the date of
enactment of the Affordable Loans for Students Act;
``(B) any loan made, insured, or guaranteed under
part B, and which is held by the Secretary;
``(C) any loan made under part E, and which is held
by the Secretary; and
``(D) any loan made under subpart I of part A of
title VII of the Public Health Service Act (42 U.S.C.
292 et seq.), and which is held by the Secretary.
``(2) Eligible federal loan not held by the secretary.--The
term `eligible Federal loan not held by the Secretary' means
any loan--
``(A) made, insured, or guaranteed under part B,
and which is not held by the Secretary;
``(B) made under part E, and which is not held by
the Secretary; and
``(C) made under--
``(i) subpart I of part A of title VII of
the Public Health Service Act (42 U.S.C. 292 et
seq.), and which is not held by the Secretary;
``(ii) subpart II of part A of title VII of
the Public Health Service Act (42 U.S.C. 292q
et seq.); or
``(iii) part E of title VIII of the Public
Health Service Act (42 U.S.C. 297a et seq.).
``(3) Original loan.--The term `original loan', used with
respect to a Federal Direct Consolidation Loan made under
subsection (b), means a loan for which a borrower's liability
is discharged by such Federal Direct Consolidation Loan.''.
(d) Conforming Amendments.--The Higher Education Act of 1965 (20
U.S.C. 1001 et seq.) is amended--
(1) in section 428C(a)(3)(B)(i)(V) (20 U.S.C. 1078-
3(3)(B)(i)(V))--
(A) by striking the period at the end of item (cc)
and inserting a semicolon;
(B) by striking the period at the end of item (dd)
and inserting ``; or''; and
(C) by adding at the end the following:
``(ee) for the purpose of
obtaining a Federal Direct
Consolidation Loan under
section 460A(b).''.
SEC. 4. APPLICABLE RATES OF INTEREST FOR LOANS MADE ON OR AFTER THE
FIRST JULY 1 AFTER THE DATE OF ENACTMENT OF THE
AFFORDABLE LOANS FOR STUDENTS ACT.
Section 455(b)(8) of the Higher Education Act of 1965 (20 U.S.C.
1087e(b)(8)) is amended--
(1) in the paragraph heading, by inserting ``and before the
first july 1 after the date of enactment of the affordable
loans for students act '' after ``July 1, 2013'';
(2) in subparagraph (A), by inserting ``and before the
first July 1 after the date of enactment of the Affordable
Loans for Students Act'' after ``July 1, 2013'';
(3) in subparagraph (B), by inserting ``and before the
first July 1 after the date of enactment of the Affordable
Loans for Students Act'' after ``July 1, 2013'';
(4) in subparagraph (C), by inserting ``and before the
first July 1 after the date of enactment of the Affordable
Loans for Students Act'' after ``July 1, 2013'';
(5) in subparagraph (D), by inserting ``and before the
first July 1 after the date of enactment of the Affordable
Loans for Students Act'' after ``July 1, 2013'';
(6) by redesignating subparagraph (F) as subparagraph (G);
and
(7) by inserting after subparagraph (E) the following:
``(F) New loans on or after the first july 1 after
the date of enactment of the affordable loans for
students act.--Notwithstanding the preceding
subparagraphs of this paragraph, for Federal Direct
Stafford Loans, Federal Direct Unsubsidized Stafford
Loans, Federal Direct PLUS Loans, and Federal Direct
Consolidation Loans for which the first disbursement is
made, or the application is received, on or after the
first July 1 after the date of enactment of the
Affordable Loans for Students Act, the applicable rate
of interest shall be 1.0 percent on the unpaid
principal balance of the loan.''.
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