S. 1742Senate108th Congress (2003-2005)In Committee

Higher Education Loan Plan Act of 2003

Introduced October 16, 2003

Legislative Activity

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2 earlier actions
SenateIntro Referral Latest Action

Read twice and referred to the Committee on Health, Education, Labor, and Pensions. (text of measure as introduced: CR 10/17/2003 S12741-12742)

October 16, 2003

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SenateIntro Referral

Introduced in Senate

October 16, 2003

SenateIntro Referral

Sponsor introductory remarks on measure. (CR 10/17/2003 S12741)

October 16, 2003

SenateIntro Referral

Read twice and referred to the Committee on Health, Education, Labor, and Pensions. (text of measure as introduced: CR 10/17/2003 S12741-12742)

October 16, 2003

Floor Debate

8 members

What members said about S. 1742 on the floor

4 Republicans4 Democrats
Chuck Grassley
Sen. Chuck GrassleyR-IA · Oct 16, 2003

Mr. President, today I am introducing a bill to help curtail abuses of government-issued credit cards throughout the Federal Government. I am pleased to join Representative Wilson who is introducing…

Patrick J. Leahy
Sen. Patrick J. LeahyD-VT · Oct 16, 2003

Mr. President, I thank my good friend, the senior Senator from South Dakota and Democratic leader. I thank him for his concern and his work on this issue. Two years have passed since several anthrax…

Mike DeWine
Sen. Mike DeWineR-OH · Oct 16, 2003

Mr. President, I rise today, with my colleague from Massachusetts, Senator Kennedy, to introduce an important piece of legislation, which will help protect the health of contact lens wearers, by…

Jeff Bingaman
Sen. Jeff BingamanD-NM · Oct 16, 2003

Mr. President, I rise today to introduce a bill of significant importance to our Nation's health: The Better Eating for Better Living Act of 2003. Today, heart disease, cancer, stroke, and diabetes…

Thomas A. Daschle
Sen. Thomas A. DaschleD-SD · Oct 16, 2003

Mr. President, 2 years ago, a letter containing about 1 gram of highly concentrated anthrax was opened in my office in the Hart Senate Office Building. Potentially deadly anthrax letters were also…

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Ben Nighthorse Campbell
Sen. Ben Nighthorse CampbellR-CO · Oct 16, 2003

Mr. President, today I am introducing legislation which would change the student borrower interest rate structure by continuing or establishing variable rates for all student loans on a going-forward…

Ben Nighthorse Campbell
Sen. Ben Nighthorse CampbellR-CO · Oct 16, 2003

Mr. President, today I am introducing legislation which would change the student borrower interest rate structure by continuing or establishing variable rates for all student loans on a going-forward…

Barbara Boxer
Sen. Barbara BoxerD-CA · Oct 16, 2003

Mr. President, I am pleased to introduce the Prisoner of War/Missing in Action National Memorial Act of 2003. This bill would designate the POW/MIA memorial currently being built at Riverside…

Arlen Specter
Sen. Arlen SpecterR-PA · Oct 16, 2003

Mr. President, we are faced today with one of the fastest growing crimes in America, identity theft. Recent estimates place the number of new identity theft victims at approximately 7 million in a…

Bill Text

Latest available legislative text

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Latest
Introduced in SenateIssued October 16, 2003
        [Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 1742 Introduced in Senate (IS)]

108th CONGRESS
1st Session
S. 1742

To amend title IV of the Higher Education Act of 1965 to provide for
variable interest rates on student loans.

_______________________________________________________________________

IN THE SENATE OF THE UNITED STATES

October 16, 2003

Mr. Campbell introduced the following bill; which was read twice and
referred to the Committee on Health, Education, Labor, and Pensions

_______________________________________________________________________

A BILL

To amend title IV of the Higher Education Act of 1965 to provide for
variable interest rates on student loans.

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 ``Higher Education Loan Plan Act of
2003''.

SEC. 2. INTEREST RATES ON STUDENT LOANS.

(a) Interest Rate Changes.--Section 427A of the Higher Education
Act of 1965 (20 U.S.C. 1077a) is amended by striking subsections (k)
and (l) and inserting the following:
``(k) Interest Rates for New Loans on or After October 1, 1998, and
Before the Date of Enactment of the Higher Education Loan Plan Act of
2003.--
``(1) In general.--Notwithstanding subsection (h) and
subject to paragraph (2), with respect to any loan made,
insured, or guaranteed under this part (other than a loan made
pursuant to section 428B or 428C) for which the first
disbursement is made on or after October 1, 1998, and before
the date of enactment of the Higher Education Loan Plan Act of
2003, 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--
``(A) the bond equivalent rate of 91-day Treasury
bills auctioned at the final auction held prior to such
June 1; plus
``(B) 2.3 percent,
except that such rate shall not exceed 8.25 percent.
``(2) In school and grace period rules.--Notwithstanding
subsection (h), with respect to any loan under this part (other
than a loan made pursuant to section 428B or 428C) for which
the first disbursement is made on or after October 1, 1998, and
before the date of enactment of the Higher Education Loan Plan
Act of 2003, the applicable rate of interest for interest which
accrues--
``(A) prior to the beginning of the repayment
period of the loan; or
``(B) during the period in which principal need not
be paid (whether or not such principal is in fact paid)
by reason of a provision described in section
427(a)(2)(C) or 428(b)(1)(M),
shall be determined under paragraph (1) by substituting `1.7
percent' for `2.3 percent'.
``(3) PLUS loans.--Notwithstanding subsection (h), with
respect to any loan under section 428B for which the first
disbursement is made on or after October 1, 1998, and before
the date of enactment of the Higher Education Loan Plan Act of
2003, the applicable rate of interest shall be determined under
paragraph (1)--
``(A) by substituting `3.1 percent' for `2.3
percent'; and
``(B) by substituting `9.0 percent' for `8.25
percent'.
``(4) Consolidation loans.--With respect to any
consolidation loan under section 428C for which the application
is received by an eligible lender on or after October 1, 1998,
and before the date of enactment of the Higher Education Loan
Plan Act of 2003, the applicable rate of interest shall be at
an annual rate on the unpaid principal balance of the loan that
is equal to the lesser of--
``(A) the weighted average of the interest rates on
the loans consolidated, rounded to the nearest higher
one-eighth of 1 percent; or
``(B) 8.25 percent.
``(5) Consultation.--The Secretary shall determine the
applicable rate of interest under this subsection 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.
``(l) Interest Rates for New Loans on or After the Date of
Enactment of the Higher Education Loan Plan Act of 2003.--
``(1) In general.--Notwithstanding subsection (h) and
subject to paragraph (2), with respect to any loan made,
insured, or guaranteed under this part (other than a loan made
pursuant to section 428B or 428C) for which the first
disbursement is made on or after the date of enactment of the
Higher Education Loan Plan Act of 2003, 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--
``(A) the bond equivalent rate of 91-day Treasury
bills auctioned at the final auction held prior to such
June 1; plus
``(B) 2.3 percent,
except that such rate shall not exceed 7.75 percent.
``(2) In school and grace period rules.--Notwithstanding
subsection (h), with respect to any loan under this part (other
than a loan made pursuant to section 428B or 428C) for which
the first disbursement is made on or after the date of
enactment of the Higher Education Loan Plan Act of 2003, the
applicable rate of interest for interest which accrues--
``(A) prior to the beginning of the repayment
period of the loan; or
``(B) during the period in which principal need not
be paid (whether or not such principal is in fact paid)
by reason of a provision described in section
427(a)(2)(C) or 428(b)(1)(M),
shall be determined under paragraph (1) by substituting `1.7
percent' for `2.3 percent'.
``(3) PLUS loans.--Notwithstanding subsection (h), with
respect to any loan under section 428B for which the first
disbursement is made on or after the date of enactment of the
Higher Education Loan Plan Act of 2003, the applicable rate of
interest shall be determined under paragraph (1)--
``(A) by substituting `3.1 percent' for `2.3
percent'; and
``(B) by substituting `8.5 percent' for `7.75
percent'.
``(4) Consolidation loans.--With respect to any
consolidation loan under section 428C for which the application
is received by an eligible lender on or after the date of
enactment of the Higher Education Loan Plan Act of 2003, 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--
``(A) the bond equivalent rate of 91-day Treasury
bills auctioned at the final auction held prior to such
June 1; plus
``(B) 2.3 percent,
except that such rate shall not exceed 7.75 percent.''.
(b) Special Allowance Conforming Changes.--Section 438(b)(2) of the
Higher Education Act of 1965 (20 U.S.C. 1087-1(b)(2)) is amended by
striking ``July 1, 2006'' each place it appears in clauses (ii), (v),
and (vii) of subparagraph (I), including in the headings of such
clauses, and inserting ``the date of enactment of the Higher Education
Loan Plan Act of 2003''.
(c) Additional Conforming Amendments.--Section 428C(c)(1) of the
Higher Education Act of 1965 (20 U.S.C. 1078-3(c)(1)) is amended by
striking ``July 1, 2006'' each place it appears and inserting ``the
date of enactment of the Higher Education Loan Plan Act of 2003''.
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