Section 1 Short title
This Act may be cited as the “Student Loan Accrual Support and Help Act” or the “SLASH Act”.
Student Loan Accrual Support and Help Act
A BILL
To amend the Higher Education Act of 1965 to include interest rate provisions for Federal loans made on or after July 1, 2020.
Sec. 2 Federal student loan interest rates
Section 455(b) of the Higher Education Act of 1965 (20 U.S.C. 1087e(b)) is amended—
in the header of paragraph (8), by inserting “, and before July 1, 2020” after “July 1, 2013”;
in subparagraphs (A), (B), (C), and (D) of paragraph (8), by inserting “and before July 1, 2020,” after “July 1, 2013,” each place it appears;
by redesignating paragraphs (9) and (10) as paragraphs (10) and (11), respectively; and
by inserting at the end of paragraph (8) the following new paragraph:
“(9) Interest rate provisions for new loans on or after July 1, 2020
“(A) Rate for all new Federal Direct loans—Notwithstanding the preceding paragraphs of this subsection, for Federal Direct Stafford Loans, Federal Direct Unsubsidized Stafford Loans, and Federal Direct PLUS Loans, for which the first disbursement is made on or after July 1, 2020, 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; or
“(ii) 5.0 percent,
“(B) 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, 2020, shall bear interest at an annual rate on the unpaid principal balance of the loan that is equal to the lesser of—
“(i) the weighted average of the interest rates on the loans consolidated, rounded to the nearest higher one-eighth of one percent; or
“(ii) the applicable rate of interest, as determined on the preceding June 1 in accordance with subparagraph (A), for Federal Direct Stafford Loans disbursed during the 12-month period (beginning on July 1 and ending on June 30) during which the application for consolidation is received.
“(C) Consultation—The Secretary shall determine the applicable rate of interest under subparagraph (A) 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.
“(D) Rate—The applicable rate of interest determined under this paragraph for a Federal Direct Stafford Loan, a Federal Direct Unsubsidized Stafford Loan, a Federal Direct PLUS Loan, or a Federal Direct Consolidation Loan shall be fixed for the period of the loan.”