Section 1 Short title
This Act may be cited as the “Student Loan Interest Rate Parity Act”.
Student Loan Interest Rate Parity Act
A BILL
To amend the Higher Education Act of 1965 to require that all Federal Direct Stafford Loans, Federal Direct Unsubsidized Stafford Loans, and Federal Direct PLUS Loans have the same rates of interest.
Sec. 2 Interest rates
Section 455(b)(8) of the Higher Education Act of 1965 (20 U.S.C. 1087e(b)(8)) is amended—
in subparagraph (B), by inserting “and before July 1, 2016,” after “2013,”;
in subparagraph (C), by inserting “and before July 1, 2016,” after “2013,”;
by redesignating subparagraphs (E) and (F) as subparagraphs (G) and (H), respectively; and
by inserting after subparagraph (D) the following:
“(E) Revised rates for graduate and professional FDSL—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, 2016, the applicable rate of interest shall be determined under subparagraph (B)—
“(i) by substituting “2.05” for “3.6”; and
“(ii) by substituting “8.25” for “9.5”.
“(F) Revised rates for Federal Direct 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, 2016, the applicable rate of interest shall be determined under subparagraph (C)—
“(i) by substituting “2.05” for “4.6”; and
“(ii) by substituting “8.25” for “10.5”.”