II
110th CONGRESS
1st Session
S. 282
IN THE SENATE OF THE UNITED STATES
January 12, 2007
Mr. Durbin (for himself and Mr. Kennedy) 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 reduce over a 5-year period the interest rate on certain undergraduate student loans.
Short title
This Act may be cited as
the College Student Relief Act of
2007
.
Applicable interest rates
Section 427A(l) of the Higher Education Act of 1965 (20 U.S.C. 1077a(l)) is amended—
in paragraph (1),
by inserting and subject to paragraph (4)
after
Notwithstanding subsection (h)
; and
by adding at the end the following:
Special rule for subsidized undergraduate loans
Notwithstanding subsection (h), with respect to any loan made, insured, or guaranteed under this part (other than a loan made pursuant to section 428B, 428C, or 428H) to or for an undergraduate student for which the first disbursement is made on or after—
July 1, 2007, the applicable rate of interest shall be 6.12 percent on the unpaid principal balance of the loan;
July 1, 2008, the applicable rate of interest shall be 5.44 percent on such balance;
July 1, 2009, the applicable rate of interest shall be 4.76 percent on such balance;
July 1, 2010, the applicable rate of interest shall be 4.08 percent on such balance; and
July 1, 2011, the applicable rate of interest shall be 3.40 percent on such balance.
.