[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 2198 Introduced in Senate (IS)]
108th CONGRESS
2d Session
S. 2198
To provide for refinancing of consolidated student loans.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
March 11, 2004
Mrs. Boxer introduced the following bill; which was read twice and
referred to the Committee on Health, Education, Labor, and Pensions
_______________________________________________________________________
A BILL
To provide for refinancing of consolidated 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 ``Consolidated Student Loan Reduction
Act of 2004''.
SEC. 2. REFINANCING AUTHORITY FOR CONSOLIDATED STUDENT LOANS.
(a) Federal Consolidation Loans.--Section 428C of the Higher
Education Act of 1965 (20 U.S.C. 1078-3) is amended by adding at the
end the following:
``(g) Refinancing Authority.--
``(1) In general.--Notwithstanding any other provision of
this part and subject to paragraph (2), a borrower may
refinance a consolidation loan at a fixed rate that is equal to
the interest rate for Federal Stafford Loans under section
427A(k) at the time the borrower applies for the refinancing.
``(2) One percent interest rate difference required.--A
borrower may refinance a consolidation loan under this
subsection whenever the interest rate for the consolidation
loan to be refinanced exceeds the fixed interest rate
determined under paragraph (1) by 1 percent or more.
``(3) Student fee prohibited.--No student shall be charged
a fee to refinance a consolidation loan under this
subsection.''.
(b) Federal Direct Consolidation Loans.--Section 455(g) of the
Higher Education Act of 1965 (20 U.S.C. 1087e(g)) is amended--
(1) by striking ``A borrower'' and inserting the following:
``(1) In general.--A borrower''; and
(2) by adding at the end the following:
``(2) Refinancing authority.--
``(A) In general.--Notwithstanding any other
provision of this part and subject to subparagraph (B),
a borrower may refinance a Federal Direct Consolidation
Loan at a fixed rate that is equal to the interest rate
for Federal Stafford Loans under section 427A(k) at the
time the borrower applies for the refinancing.
``(B) One percent interest rate difference
required.--A borrower may refinance a consolidation
loan under this subsection whenever the interest rate
for the consolidation loan to be refinanced exceeds the
fixed interest rate determined under subparagraph (A)
by 1 percent or more.
``(C) Student fee prohibited.--No student shall be
charged a fee to refinance a consolidation loan under
this paragraph.''.
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