Bill > S1003

This bill, titled the Comprehensive Student Loan Protection Act, amends the Higher Education Act of 1965 to establish a new method for setting interest rates on federal student loans disbursed on or after July 1, 2013. Specifically, it mandates that the interest rate for Federal Direct Stafford Loans, Federal Direct Unsubsidized Stafford Loans, and Federal Direct PLUS Loans will be determined annually on June 1st and will be equal to the bond equivalent rate of 10-year Treasury bills from the preceding auction plus 3.0 percent. This rate will then be fixed for the entire life of the loan, and the Secretary of Education will consult with the Secretary of the Treasury and publish the rate in the Federal Register. The bill also requires the Comptroller General to calculate the savings to the federal government resulting from this change, with any such savings to be used for deficit reduction, and outlines how the budgetary effects will be determined for compliance with the Statutory Pay-As-You-Go Act of 2010.