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H.R. 5274

Student Loan Refinancing and Recalculation Act

Student Loan Refinancing and Recalculation Act

This bill amends title IV (Student Assistance) of the Higher Education Act of 1965 to direct the Department of Education to establish a program to refinance the outstanding principal, interest, and late charges on Federal Direct Loans (DLs) and Federal Family Education Loans (FFELs).

A refinanced loan has a fixed interest rate equal to the 10-year Treasury note rate plus 1 percentage point.

Additionally, the bill modifies the formula to calculate interest rates on new Direct Subsidized, Unsubsidized, and PLUS Loans disbursed on or after July 1, 2017.

Finally, it eliminates the origination fee on Direct Subsidized, Unsubsidized, and PLUS Loans disbursed (and on Consolidation Loans applied for) after enactment of this bill.

Referred to the Subcommittee on Higher Education and Workforce Training.

Rep. Garamendi, John [D-CA-3](D-CA)Sponsor
30 cosponsors29 D1 R
30cosponsors1committees5actions1related bills5subjects
  1. Committee

    Referred to the Subcommittee on Higher Education and Workforce Training.

    Higher Education and Workforce Development Subcomittee
  2. IntroReferralB00100

    Sponsor introductory remarks on measure. (CR H3698-3699)

  3. IntroReferralH11100

    Referred to the House Committee on Education and the Workforce.

    Education and the Workforce Committee
  4. IntroReferralIntro-H

    Introduced in House

  5. IntroReferral1000

    Introduced in House

Student Loan Refinancing and Recalculation Act — Informed