What the bill does
Bank on Students Emergency Loan Refinancing Act – Amends title IV (Student Assistance) of the Higher Education Act of 1965 to direct the Secretary of Education to establish a program to refinance the unpaid principal, accrued unpaid interest, and late charges on: (1) the William D. Ford Federal Direct Loans (DLs) of qualified borrowers if the DLs were first disbursed or, in the case of Direct Consolidation Loans, applied for, before July 1, 2013; and (2) the Federal Family Education Loans (FFE Ls) of qualified borrowers as DLs. (FFE Ls were not disbursed after June 30, 2010.) Refinances the FFE Ls as Federal Direct Stafford, Unsubsidized Stafford, PLUS, or Consolidated Loans depending on the categorization of the FFEL as a Stafford, Unsubsidized Stafford, PLUS, or Consolidated Loan. Sets the interest rate on the refinanced loans, other than the Federal Direct Consolidation Loans, at the rate for the 12 months beginning on July 1, 2013, based on: (1) the DL's categorization; and (2) in the case of Stafford Loans, whether the loan was issued to an undergraduate or graduate student. Determines a refinanced Consolidation Loan's interest rate by: (1) weighing the proportion of the unpaid balance of the Consolidation Loan that each component loan represents, (2) setting the interest rate on each component loan at the lesser of the rate on the component loan for the 12 months beginning on July 1, 2013, or its original rate, and (3) applying the weighted average of the interest rates on those loans as the interest rate on the Consolidation Loan. Fixes the interest rate on the…
Subjects: Budget deficits and national debt, Government lending and loan guarantees, Higher education, Income tax deductions, Income tax rates, Inflation and prices, Interest, dividends, interest rates, Social work, volunteer service, charitable organizations, Student aid and college costs, User charges and fees