Page:United States Statutes at Large Volume 116 Part 1.djvu/34

 116 STAT. 8 PUBLIC LAW 107-139—FEB. 8, 2002 Public Law 107-139 107th Congress An Act Fv>s9009 "^^ amend the Higher Education Act of 1965 to establish fixed interest rates for — student and parent borrowers, to extend current law with respect to special [S. 1762] allowances for lenders, and for other purposes. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. INTEREST RATE PROVISIONS. (a) FFEL FIXED INTEREST RATES.— (1) AMENDMENT.— Section 427A of the Higher Education Act of 1965 (20 U.S.C. 1077a) is amended— (A) by redesignating subsections (1) and (m) as subsections (m) and (n), respectively; and (B) by inserting after subsection (k) the following new subsection: "(1) INTEREST RATES FOR NEW LOANS ON OR AFTER JULY 1, 2006.— "(1) IN GENERAL.—Notwithstanding subsection (h), with respect to any loan made, insured, or guaranteed under this part (other than a loan made pursuant to section 428B or 428C) for which the first disbursement is made on or after July 1, 2006, the applicable rate of interest shall be 6.8 percent on the unpaid principal balance of the loan. "(2) PLUS LOANS.— Notwithstanding subsection (h), with respect to any loan under section 428B for which the first disbursement is made on or after July 1, 2006, the applicable rate of interest shall be 7.9 percent on the unpaid principal balance of the loan. "(3) CONSOLIDATION LOANS.— With respect to any consolidation loan under section 428C for which the application is received by an eligible lender on or after July 1, 2006, the applicable rate of interest shall be at an annual rate on the unpaid principal balance of the loan that is equal to the lesser of— "(A) the weighted average of the interest rates on the loans consolidated, rounded to the nearest higher oneeighth of 1 percent; or "(B) 8.25 percent.". (2) CONFORMING AMENDMENT. —Section 428C(c)(l)(A) of such Act (20 U.S.C. 1078-3(c)(l)(A)) is amended to read as follows:

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