Home > 107th Congressional Public Laws > Pub.L. 107-140 To amend title 18 of the United States Code to correct a technical error in the codification of title 36 of the United States Code. <> ...

Pub.L. 107-140 To amend title 18 of the United States Code to correct a technical error in the codification of title 36 of the United States Code. <> ...


Google
 
Web GovRecords.org

<DOC>



[[Page 7]]

                       STUDENT LOAN INTEREST RATES

[[Page 116 STAT. 8]]

Public Law 107-139
107th Congress

                                 An Act


 
 To amend the Higher Education Act of 1965 to establish fixed interest 
   rates for student and parent borrowers, to extend current law with 
        respect to special allowances for lenders, and for other 
             purposes. <<NOTE: Feb. 8, 2002 -  [S. 1762]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. INTEREST RATE PROVISIONS.

    (a) FFEL Fixed Interest Rates.--
            (1) Amendment.--Section 427A of the Higher Education Act of 
        1965 (20 U.S.C. 1077a) is amended--
                    (A) by redesignating subsections (l) and (m) as 
                subsections (m) and (n), respectively; and
                    (B) by inserting after subsection (k) the following 
                new subsection:

    ``(l) Interest Rates for New Loans on or After July 1, 2006.--
            ``(1) In general.--Notwithstanding subsection (h), 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 July 1, 2006, 
        the applicable rate of interest shall be 6.8 percent on the 
        unpaid principal balance of the loan.
            ``(2) PLUS loans.--Notwithstanding subsection (h), with 
        respect to any loan under section 428B for which the first 
        disbursement is made on or after July 1, 2006, the applicable 
        rate of interest shall be 7.9 percent on the unpaid principal 
        balance of the loan.
            ``(3) Consolidation loans.--With respect to any 
        consolidation loan under section 428C for which the application 
        is received by an eligible lender on or after July 1, 2006, 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.''.
            (2) Conforming amendment.--Section 428C(c)(1)(A) of such Act 
        (20 U.S.C. 1078-3(c)(1)(A)) is amended to read as follows:

[[Page 116 STAT. 9]]

            ``(1) Interest rate.--(A) Notwithstanding subparagraphs (B) 
        and (C), with respect to any loan made under this section for 
        which the application is received by an eligible lender--
                    ``(i) on or after October 1, 1998, and before July 
                1, 2006, the applicable interest rate shall be 
                determined under section 427A(k)(4); or
                    ``(ii) on or after July 1, 2006, the applicable 
                interest rate shall be determined under section 
                427A(l)(3).''.

    (b) Direct Loans Fixed Interest Rates.--
            (1) Technical correction.--Paragraph (6) of section 455(b) 
        of the Higher Education Act of 1965 (20 U.S.C. 1087e(b)), as 
        redesignated by section 8301(c)(1) of the Transportation Equity 
        Act for the 21st Century (Public Law 105-178; 112 Stat. 498) is 
        redesignated as paragraph (9) and is transferred to follow 
        paragraph (7) of section 455(b) of the Higher Education Act of 
        1965.
            (2) Amendments.--Section 455(b) of the Higher Education Act 
        of 1965 (20 U.S.C. 1087e(b)) is amended--
                    (A) by redesignating paragraph (7) as paragraph (8); 
                and
                    (B) by inserting after paragraph (6) the following 
                new paragraph:
            ``(7) Interest rate provision for new loans on or after july 
        1, 2006.--
                    ``(A) Rates for fdsl and fdusl.--Notwithstanding the 
                preceding paragraphs of this subsection, for Federal 
                Direct Stafford Loans and Federal Direct Unsubsidized 
                Stafford Loans for which the first disbursement is made 
                on or after July 1, 2006, the applicable rate of 
                interest shall be 6.8 percent on the unpaid principal 
                balance of the loan.
                    ``(B) PLUS loans.--Notwithstanding the preceding 
                paragraphs of this subsection, with respect to any 
                Federal Direct PLUS loan for which the first 
                disbursement is made on or after July 1, 2006, the 
                applicable rate of interest shall be 7.9 percent on the 
                unpaid principal balance of the loan.
                    ``(C) Consolidation loans.--Notwithstanding the 
                preceding paragraphs of this subsection, any Federal 
                Direct Consolidation loan for which the application is 
                received on or after July 1, 2006, shall bear interest 
                at an annual rate on the unpaid principal balance of the 
                loan that is equal to the lesser of--
                          ``(i) the weighted average of the interest 
                      rates on the loans consolidated, rounded to the 
                      nearest higher one-eighth of one percent; or
                          ``(ii) 8.25 percent.''.

    (c) Extension of Current Interest Rate Provisions for Three Years.--
Sections 427A(k) and 455(b)(6) of the Higher Education Act of 1965 (20 
U.S.C. 1077a(k), 1087e(b)(6)) are each amended--
            (1) by striking ``2003'' in the heading and inserting 
        ``2006''; and
            (2) by striking ``July 1, 2003,'' each place it appears and 
        inserting ``July 1, 2006,''.

[[Page 116 STAT. 10]]

SEC. 2. EXTENSION OF SPECIAL ALLOWANCE PROVISION.

    Section 438(b)(2)(I) of the Higher Education Act of 1965 (20 U.S.C. 
1087-1(b)(2)(I)) is amended--
            (1) by striking ``, and before july 1, 2003'' in the 
        heading;
            (2) by striking ``and before July 1, 2003,'' each place it 
        appears, other than in clauses (ii) and (v);
            (3) by striking clause (ii) and inserting the following:
                          ``(ii) In school and grace period.--In the 
                      case of any loan--
                                    ``(I) for which the first 
                                disbursement is made on or after January 
                                1, 2000, and before July 1, 2006, and 
                                for which the applicable rate of 
                                interest is described in section 
                                427A(k)(2); or
                                    ``(II) for which the first 
                                disbursement is made on or after July 1, 
                                2006, and for which the applicable rate 
                                of interest is described in section 
                                427A(l)(1), but only with respect to 
                                (aa) periods prior to the beginning of 
                                the repayment period of the loan; or 
                                (bb) during the periods 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);
                      clause (i)(III) of this subparagraph shall be 
                      applied by substituting `1.74 percent' for `2.34 
                      percent'.'';
            (4) in clause (iii), by inserting ``or (l)(2)'' after 
        ``427A(k)(3)'';
            (5) in clause (iv), by inserting ``or (l)(3)'' after 
        ``427A(k)(4)'';
            (6) in clause (v)--
                    (A) in the heading, by inserting ``before july 1, 
                2006'' after ``plus loans''; and
                    (B) by striking ``July 1, 2003,'' and inserting 
                ``July 1, 2006,'';
            (7) in clause (vi)--
                    (A) by inserting ``or (l)(3)'' after ``427A(k)(4)'' 
                the first place it appears; and
                    (B) by inserting ``or (l)(3), whichever is 
                applicable'' after ``427A(k)(4)'' the second place it 
                appears; and
            (8) by adding at the end the following new clause:
                          ``(vii) Limitation on special allowances for 
                      plus loans on or after july 1, 2006.--In the case 
                      of PLUS loans made under section 428B and first 
                      disbursed on or after July 1, 2006, for which the 
                      interest rate is determined under section 
                      427A(l)(2), a special allowance shall not be paid 
                      for such loan during any 12-month period beginning 
                      on July 1 and ending on June 30 unless--

[[Page 116 STAT. 11]]

                                    ``(I) the average of the bond 
                                equivalent rates of the quotes of the 3-
                                month commercial paper (financial), as 
                                published by the Board of Governors of 
                                the Federal Reserve System in 
                                Publication H-15 (or its successor), for 
                                the last calendar week ending on or 
                                before such July 1; plus
                                    ``(II) 2.64 percent,
                      exceeds 9.0 percent.''.

    Approved February 8, 2002.

LEGISLATIVE HISTORY--S. 1762:
---------------------------------------------------------------------------

CONGRESSIONAL RECORD:
                                                        Vol. 147 (2001):
                                    Dec. 14, considered and passed 
                                        Senate.
                                    Dec. 19, 20, considered and rejected 
                                        in House.
                                                        Vol. 148 (2002):
                                    Jan. 24, considered and passed 
                                        House.

                                  <all>

Pages: 1

Other Popular 107th Congressional Public Laws Documents:

1 Pub.L. 107-005 Providing for congressional disapproval of the rule submitted by the Department of Labor under chapter 8 of title 5, United States Code, relating to ergonomics. <> ...
2 Pub.L. 107-280 To amend the Public Health Service Act to establish an Office of Rare Diseases at the National Institutes of Health, and for other purposes. <> ...
3 Pub.L. 107-342 To amend the Omnibus Parks and Public Lands Management Act of 1996 to provide adequate funding authorization for the Vancouver National Historic Reserve. <> ...
4 Pub.L. 107-154 To extend the period of availability of unemployment assistance under the Robert T. Stafford Disaster Relief and Emergency Assistance Act in the case of victims of the terrorist attacks of September 11, 2001. <
5 Pub.L. 107-151 To revise certain grants for continuum of care assistance for homeless individual and families. <> ...
6 Pub.L. 107-174 To require that Federal agencies be accountable for violations of ...
7 Pub.L. 107-224 To amend the John F. Kennedy Center Act to authorize the Secretary of Transportation to carry out a project for construction of a plaza adjacent to the John F. Kennedy Center for the Performing Arts, and for other purposes. <
8 Pub.L. 107-345 To amend title 10, United States Code, to make receipts collected from ...
9 Pub.L. 107-314 To authorize appropriations for fiscal year 2003 for military activities of the Department of Defense, for military construction, and for defense activities of the Department of Energy, to prescribe personnel strengths for such fiscal year...
10 Pub.L. 107-223 To authorize the Secretary of the Interior to issue right-of-way permits for natural gas pipelines within the boundary of Great Smoky Mountains National Park. <> ...
11 Pub.L. 107-112 To reauthorize the Rhinoceros and Tiger Conservation Act of 1994. <> ...
12 Pub.L. 107-033 To designate the United States courthouse located at 40 Centre Street in New York, New York, as the ``Thurgood Marshall United States Courthouse''. <> ...
13 Pub.L. 107-055 Providing for the appointment of Roger W. Sant as a citizen regent of the Board of Regents of the Smithsonian Institution. <> ...
14 Pub.L. 107-012 To authorize the Public Safety Officer Medal of Valor, and for other purposes. <> ...
15 Pub.L. 107-081 To authorize the provision of educational and health care assistance to the women and children of Afghanistan. <> ...
16 Pub.L. 107-090 To modernize the financing of the railroad retirement system and to provide enhanced benefits to employees and beneficiaries. <> ...
17 Pub.L. 107-009 To establish a Federal interagency task force for the purpose of coordinating actions to prevent the outbreak of bovine spongiform encephalopathy (commonly known as ``mad cow disease'') and foot-and- mouth disease in the United States. <
18 Pub.L. 107-031 To designate the Federal building and United States courthouse located at 504 West Hamilton Street in Allentown, Pennsylvania, as the ``Edward N. Cahn Federal Building and United States Courthouse''. <> %%F...
19 Pub.L. 107-043 To implement the agreement establishing a United States-Jordan free trade area. <> ...
20 Pub.L. 107-271 To redesignate the facility of the United States Postal Service located at 265 South Western Avenue, Los Angeles, California, as the ``Nat King Cole Post Office''. <> ...
21 Pub.L. 107-322 To extend the deadline for commencement of construction of a hydroelectric project in the State of North Carolina. <> ...
22 Pub.L. 107-331 To amend the Indian Financing Act of 1974 to improve the effectiveness of the Indian loan guarantee and insurance program. <> ...
23 Pub.L. 107-341 To direct the Secretary of the Interior to study the suitability and feasibility of designating the Waco Mammoth Site Area in Waco, Texas, as a unit of the National Park System, and for other purposes. <>...
24 Pub.L. 107-349 To authorize payments to certain Klamath Project water distribution ...
25 Pub.L. 107-061 To authorize the Government of the Czech Republic to establish a memorial to honor Tomas G. Masaryk in the District of Columbia. <> ...
26 Pub.L. 107-038 Making emergency supplemental appropriations for fiscal year 2001 for ...
27 Pub.L. 107-096 Making appropriations for the government of the District of Columbia and other activities chargeable in whole or in part against revenues of said District for the fiscal year ending September 30, 2002, and for other purposes. <
28 Pub.L. 107-192 To designate the facility of the United States Postal Service located at 2829 Commercial Way in Rock Springs, Wyoming, as the ``Teno Roncalio Post Office Building''. <> ...
29 Pub.L. 107-344 To amend the Reclamation Wastewater and Groundwater Study and Facilities ...
30 Pub.L. 107-102 Regarding the use of the trust land and resources of the Confederated Tribes of the Warm Springs Reservation of Oregon. <> ...


Other Documents:

107th Congressional Public Laws Records and Documents

GovRecords.org presents information on various agencies of the United States Government. Even though all information is believed to be credible and accurate, no guarantees are made on the complete accuracy of our government records archive. Care should be taken to verify the information presented by responsible parties. Please see our reference page for congressional, presidential, and judicial branch contact information. GovRecords.org values visitor privacy. Please see the privacy page for more information.
House Rules:

104th House Rules
105th House Rules
106th House Rules

Congressional Bills:

104th Congressional Bills
105th Congressional Bills
106th Congressional Bills
107th Congressional Bills
108th Congressional Bills

Supreme Court Decisions

Supreme Court Decisions

Additional

1995 Privacy Act Documents
1997 Privacy Act Documents
1994 Unified Agenda
2004 Unified Agenda

Congressional Documents:

104th Congressional Documents
105th Congressional Documents
106th Congressional Documents
107th Congressional Documents
108th Congressional Documents

Congressional Directory:

105th Congressional Directory
106th Congressional Directory
107th Congressional Directory
108th Congressional Directory

Public Laws:

104th Congressional Public Laws
105th Congressional Public Laws
106th Congressional Public Laws
107th Congressional Public Laws
108th Congressional Public Laws

Presidential Records

1994 Presidential Documents
1995 Presidential Documents
1996 Presidential Documents
1997 Presidential Documents
1998 Presidential Documents
1999 Presidential Documents
2000 Presidential Documents
2001 Presidential Documents
2002 Presidential Documents
2003 Presidential Documents
2004 Presidential Documents

Home Executive Judicial Legislative Additional Reference About Privacy