Sec. 201. Restoration of certain interest rate provisions
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Section 455(b) of the Higher Education Act of 1965 ( 20 U.S.C. 1087e(b) ) is amended— in paragraph (8)— in the heading, by striking and inserting on or after July 1, 2013 ; and on or after July 1, 2013, and before July 1, 2015 by striking on or after July 1, 2013 and inserting on or after July 1, 2013, and before July 1, 2015 each place the term appears; by redesignating paragraphs
(9)and
(10)as paragraphs
(10)and (11), respectively; and by inserting the following after paragraph (8): 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, 2015, 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 bond equivalent rate of 91-day Treasury bills auctioned at the final auction held prior to such June 1; plus 2.3 percent, except that such rate shall not exceed 8.25 percent. Notwithstanding the preceding paragraphs of this subsection, with respect to any Federal Direct Stafford Loan or Federal Direct Unsubsidized Stafford Loan for which the first disbursement is made on or after July 1, 2015, the applicable rate of interest for interest which accrues— prior to the beginning of the repayment period of the loan; or 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 subsection (f), shall be determined under subparagraph
(A)by substituting 1.7 percent for 2.3 percent . Notwithstanding the preceding paragraphs of this subsection, with respect to Federal Direct PLUS Loan for which the first disbursement is made on or after July 1, 2015, the applicable rate of interest shall be determined under subparagraph (A)— by substituting 3.1 percent for 2.3 percent ; and by substituting 9.0 percent for 8.25 percent . Notwithstanding the preceding paragraphs of this subsection, any Federal Direct Consolidation loan for which the application is received on or after July 1, 2015, shall bear interest at an annual rate on the unpaid principal balance of the loan that is equal to the lesser of— the weighted average of the interest rates on the loans consolidated, rounded to the nearest higher 1/8 of 1 percent; or 8.25 percent. .
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Sec. 201
Restoration of certain interest rate provisions
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