Bill > S897

This bill, titled the "Bank on Students Loan Fairness Act," aims to prevent a doubling of interest rates on Federal subsidized student loans for the 2013-2014 academic year. It proposes that the Federal Reserve System provide the necessary funds for these loans, ensuring that the interest rates are the same as those the Federal Government charges banks through its discount window, which is a lending facility operated by the Federal Reserve. Specifically, the bill amends the Higher Education Act of 1965 to direct the Board of Governors of the Federal Reserve System to make funds available to the Secretary of Education for Federal Direct Stafford Loans for the award year beginning July 1, 2013. It also stipulates that for these loans disbursed between July 1, 2013, and July 1, 2014, the interest rate will be set at the primary credit rate charged by Federal Reserve banks on July 1, 2013, effectively capping the rate and preventing it from doubling.