Sec. 2. INTEREST RATES
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## SEC. 2 INTEREST RATES ###
(a)Interest Rates Section 455(b) of the Higher Education Act of 1965 (20 U.S.C. 1087e(b)) is amended— ####
(1)in paragraph (7)— #####
(A)in the paragraph heading, by inserting “and before july 1, 2013” after “on or after july 1, 2006”; #####
(B)in subparagraph (A), by inserting “and before July 1, 2013,” after “on or after July 1, 2006,”; #####
(C)in subparagraph (B), by inserting “and before July 1, 2013,” after “on or after July 1, 2006,”; and #####
(D)in subparagraph (C), by inserting “and before July 1, 2013,” after “on or after July 1, 2006,”; ####
(2)by redesignating paragraphs
(8)and
(9)as paragraphs
(9)and (10), respectively; and ####
(3)by inserting after paragraph
(7)the following: > > #### “(8) Interest rate provisions for new loans on or after july 1, 2013 > > > ##### “(A) Rates for undergraduate fdsl and fdusl > > Notwithstanding the preceding paragraphs of this subsection, for Federal Direct Stafford Loans and Federal Direct Unsubsidized Stafford Loans issued to undergraduate students, for which the first disbursement is made on or after July 1, 2013, the applicable rate of interest shall, for loans disbursed 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 lesser of— > > > ###### “(i) > > a rate equal to the high yield of the 10-year Treasury note auctioned at the final auction held prior to such June 1 plus 2.05 percent; or > > > ###### “(ii) > > 8.25 percent. > > > ##### “(B) Rates for graduate and professional fdusl > > Notwithstanding the preceding paragraphs of this subsection, for Federal Direct Unsubsidized Stafford Loans issued to graduate or professional students, for which the first disbursement is made on or after July 1, 2013, the applicable rate of interest shall, for loans disbursed 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 lesser of— > > > ###### “(i) > > a rate equal to the high yield of the 10-year Treasury note auctioned at the final auction held prior to such June 1 plus 3.6 percent; or > > > ###### “(ii) > > 9.5 percent. > > > ##### “(C) PLUS loans > > Notwithstanding the preceding paragraphs of this subsection, for Federal Direct PLUS Loans, for which the first disbursement is made on or after July 1, 2013, the applicable rate of interest shall, for loans disbursed 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 lesser of— > > > ###### “(i) > > a rate equal to the high yield of the 10-year Treasury note auctioned at the final auction held prior to such June 1 plus 4.6 percent; or > > > ###### “(ii) > > 10.5 percent. > > > ##### “(D) 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, 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. > > > ##### “(E) Consultation > > The Secretary shall determine the applicable rate of interest under this paragraph after consultation with the Secretary of the Treasury and shall publish such rate in the Federal Register as soon as practicable after the date of determination. > > > ##### “(F) Rate > > The applicable rate of interest determined under this paragraph for a Federal Direct Stafford Loan, a Federal Direct Unsubsidized Stafford Loan, or a Federal Direct PLUS Loan shall be fixed for the period of the loan.” > . ###
(b)Effective Date **[**[20 U.S.C. 1087e note](/us/usc/t20/s1087e)**]** The amendments made by subsection
(a)shall take effect as if enacted on July 1, 2013.
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