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Code · BILL · 113th Congress · H.R. 1911 (Engrossed in House) — To amend the Higher Education Act of 1965 to establish interest rates for new loans made on or after July 1, 2013, to... · Sec. 102

Sec. 102. Student loan interest rates

331 words·~2 min read·/bill/113/hr/1911/eh/section-102·

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Section 455(b) of the Higher Education Act of 1965 ( 20 U.S.C. 1087e(b) ) is amended— in paragraph (7)— in the paragraph heading, by inserting after , and before July 1, 2013 ; 2006 in subparagraph (A), by inserting and before July 1, 2013, after 2006, ; in subparagraph (B), by inserting and before July 1, 2013, after 2006, ; and in subparagraph (C), by inserting and before July 1, 2013, after 2006, ; by redesignating paragraphs
(8)and
(9)as paragraphs
(9)and (10), respectively; and by inserting after paragraph (7), the following: 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, 2013, 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— the high-yield 10-year Treasury notes auctioned at the final auction held prior to such June 1; plus 2.5 percent, except that such rate shall not exceed 8.5 percent. Notwithstanding the preceding paragraphs of this subsection, for any Federal Direct PLUS Loan for which the first disbursement is made on or after July 1, 2013, 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— the high-yield 10-year Treasury notes auctioned at the final auction held prior to such June 1; plus 4.5 percent, except that such rate shall not exceed 10.5 percent. Notwithstanding the preceding paragraphs of this subsection, any Federal Direct Consolidation Loan for which the application is received on or after July 1, 2013, shall bear interest at an annual rate on the unpaid principal balance of the loan that is equal to the weighted average of the interest rates on the loans consolidated, rounded to the nearest higher one-eighth of one percent. .
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Sec. 102
Student loan interest rates
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