United States 116th Congress Status: Died 1 D cosponsors

HR 3257 — Student Loan Fairness Act

Last action — Referred to the Committee on Education and Labor, and in addition to the Committees on Financial Services, and Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.

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  1. ✓
    Introduced
  2. ✓
    In Committee
  3. Died in session

This bill died with 116th Congress. It reached “In Committee” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.

This bill is no longer active — its legislative session has ended, so there is no live prognosis. It would have to be reintroduced in the current session to move again.

Summary

Student Loan Fairness Act This bill addresses repayment plans, forgiveness, and applicable interest rates for student loans. Among other things, the bill establishes an income-based 10/10 Loan Repayment Plan and specifies the calculation of monthly loan payments under the plan for borrowers of Federal Family Education Loans (FFELs) and Direct Loans; establishes a 10/10 Loan Forgiveness Program that provides FFEL and Direct Loan forgiveness to borrowers who, over 10 years, have made 120 monthly payments under the 10/10 Loan Repayment Plan or under another repayment plan that required them to make payments at least as large as those they would have made under the 10/10 Loan Repayment Plan; caps the interest rate on new Direct Loans at 3.4%; revises the Public Service Loan Forgiveness (PSLF) program to forgive the Direct Loans of participants who have made 60 (rather than 120) monthly payments on such loans pursuant to specified repayment plans; includes primary care physicians in medically underserved areas in the PSLF program; allows certain borrowers to consolidate their private education loans as Direct Consolidation Loans; directs the Consumer Financial Protection Bureau to issue regulations that require private education lenders to sell private education loans to the Department of Education (ED) for consolidation as Direct Consolidation Loans; and requires ED to pay the interest that accrues on certain student loans due to the borrower's lack of full-time employment for an interest-free deferment period of up to three years.

Bill Text

Sections of law this bill changes

5 sections in 2 laws

From the bill's own amending language, matched to the official United States Code (current through Public Law 119-124).

Consumer credit protection · 15 U.S.C. ch. 41 Amends the act as a whole
Higher education resources and student assistance · 20 U.S.C. ch. 28 4 sections
  • § 1078 Federal payments to reduce student interest costs Amends

    20 U.S.C. § 1078 — at 1078(b)(9) and 1078(b)(1)(Y)(iii)

    The law today

    (a) Federal interest subsidies (1) Types of loans that qualify Each student who has received a loan for study at an eligible institution for which the first disbursement is made before July 1, 2010, and— (A) which is insured by the Secretary under this part; or (B) which is insured under a program of a State or of a nonprofit private institution or organization which was contracted for, and paid to the student, within the period specified in paragraph (5), and which— (i) in the case of a loan insured prior to July 1, 1967, was made by an eligible lender and is insured under a program which meets the requirements of subparagraph (E) of subsection (b)(1) and provides that repayment of such loan shall be in installments beginning not earlier than 60 days after the student ceases to pursue a course of study (as described in subparagraph (D) of subsection (b)(1)) at an eligible institution, or (ii) in the case of a loan insured after June 30, 1967, was made by an eligible lender and is insured under a program covered by an agreement made pursuant to subsection (b), shall be entitled to have paid on his or her behalf and for his or her account to the holder of the loan a portion of the interest on such loan under circumstances described in paragraph (2). (2) Additional requirements to receive subsidy (A) Each student qualifying for a portion of an interest payment under paragraph (1) shall— (i) have provided to the lender a statement from the eligible institution, at which the student has been accepted for enrollment, or at which the student is in attendance, which— (I) sets forth the loan amount for which the student shows financial need; and (II) sets forth a schedule for disbursement of the proceeds of the loan in installments, consistent with the requirements of section 1078–7 of this title; (ii) meet the requirements of subparagraph (B); and (iii) have provided to the lender at the time of application for a loan made, insured, or guaranteed under this part, the student’s driver’s number, if any. (B) For the purpose of clause (ii) of subparagraph (A), a student shall qualify for a portion of an interest payment under paragraph (1) if the eligible institution has determined and documented the student’s amount of need for a loan based on the student’s estimated cost of attendance, estimated financial assistance, and, for the purpose of an interest payment pursuant to this section, student aid index (as determined under part F), subject to the provisions of subparagraph (D). (C) For the purpose of this paragraph— (i) a student’s cost of attendance shall be determined under section 1087ll of this title; (ii) a student’s estimated financial assistance means, for the period for which the loan is sought— (I) the amount of assistance such student will receive under subpart 1 of part A of this subchapter (as determined in accordance with section 1091(b) of this title), subpart 3 of part A of this subchapter, and parts C and E; plus (II) other scholarship, grant, or loan assistance, but excluding— (aa) any national service education award or post-service benefit under title I of the National and Community Service Act of 1990 [42 U.S.C. 12511 et seq.]; and (bb) any veterans’ education benefits as defined in section 1087vv(c) of this title; and (iii) the determination of need and of the amount of a loan by an eligible institution under subparagraph (B) with respect to a student shall be calculated in accordance with part F. (D) An eligible institution may not, in carrying out the provisions of subparagraphs (A) and (B) of this paragraph, provide a statement which certifies the eligibility of any student to receive any loan under this part in excess of the maximum amount applicable to such loan. (E) For the purpose of subparagraphs (B) and (C) of this paragraph, any loan obtained by a student under section 1078–1 1 or 1078–8 of this title or a parent under section 1078–2 of this title or under any State-sponsored or private loan program f...

    32 other bills also change this section · Follow it → Official text at uscode.house.gov ↗

  • § 1078-3 Federal consolidation loans Amends

    20 U.S.C. § 1078-3 — at 1078-3(a)(3)(B)(i)(V) and 1078-3(b)(4)(C)(ii)

    The law today

    (a) Agreements with eligible lenders (1) Agreement required for insurance coverage For the purpose of providing loans to eligible borrowers for consolidation of their obligations with respect to eligible student loans, the Secretary or a guaranty agency shall enter into agreements in accordance with subsection (b) with the following eligible lenders: (A) the Student Loan Marketing Association or the Holding Company of the Student Loan Marketing Association, including any subsidiary of the Holding Company, created pursuant to section 1087–3 of this title; (B) State agencies described in subparagraphs (D) and (F) of section 1085(d)(1) of this title; and (C) other eligible lenders described in subparagraphs (A), (B), (C), (E), and (J) of such section. (2) Insurance coverage of consolidation loans Except as provided in section 1079(e) of this title, no contract of insurance under this part shall apply to a consolidation loan unless such loan is made under an agreement pursuant to this section and is covered by a certificate issued in accordance with subsection (b)(2). Loans covered by such a certificate that is issued by a guaranty agency shall be considered to be insured loans for the purposes of reimbursements under section 1078(c) of this title, but no payment shall be made with respect to such loans under section 1078(f) of this title to any such agency. (3) Definition of eligible borrower (A) For the purpose of this section, the term “eligible borrower” means a borrower who— (i) is not subject to a judgment secured through litigation with respect to a loan under this subchapter or to an order for wage garnishment under section 1095a of this title; and (ii) at the time of application for a consolidation loan— (I) is in repayment status as determined under section 1078(b)(7)(A) of this title; (II) is in a grace period preceding repayment; or (III) is a defaulted borrower who has made arrangements to repay the obligation on the defaulted loans satisfactory to the holders of the defaulted loans. (B) (i)  1 An individual’s status as an eligible borrower under this section or under section 1087e(g) of this title terminates under both sections upon receipt of a consolidation loan under this section or under section 1087e(g) of this title, except that— (I) an individual who receives eligible student loans after the date of receipt of the consolidation loan may receive a subsequent consolidation loan; (II) loans received prior to the date of the consolidation loan may be added during the 180-day period following the making of the consolidation loan; (III) loans received following the making of the consolidation loan may be added during the 180-day period following the making of the consolidation loan; (IV) loans received prior to the date of the first consolidation loan may be added to a subsequent consolidation loan; and (V) an individual may obtain a subsequent consolidation loan under section 1087e(g) of this title only— (aa) for the purposes of obtaining income contingent repayment or income-based repayment, and only if the loan has been submitted to the guaranty agency for default aversion or if the loan is already in default; (bb) for the purposes of using the public service loan forgiveness program under section 1087e(m) of this title; (cc) for the purpose of using the no accrual of interest for active duty service members benefit offered under section 1087e(o) of this title; or (dd) for the purpose of separating a joint consolidation loan into 2 separate Federal Direct Consolidation Loans under section 1087e(g)(2) of this title. (4) “Eligible student loans” defined For the purpose of paragraph (1), the term “eligible student loans” means loans— (A) made, insured, or guaranteed under this part, and first disbursed before July 1, 2010, including loans on which the borrower has defaulted (but has made arrangements to repay the obligation on the defaulted loans satisfactory to the Secretary or guaranty agency, whichever insured...

    27 other bills also change this section · Follow it → Official text at uscode.house.gov ↗

  • § 1078-8 Unsubsidized Stafford loans for middle-income borrowers Amends

    20 U.S.C. § 1078-8 — at 1078-8(e)(2)

    The law today

    (a) In general It is the purpose of this section to authorize insured loans under this part that are first disbursed before July 1, 2010, for borrowers who do not qualify for Federal interest subsidy payments under section 1078 of this title. Except as provided in this section, all terms and conditions for Federal Stafford loans established under section 1078 of this title shall apply to loans made pursuant to this section. (b) Eligible borrowers Prior to July 1, 2010, any student meeting the requirements for student eligibility under section 1091 of this title (including graduate and professional students as defined in regulations promulgated by the Secretary) shall be entitled to borrow an unsubsidized Federal Stafford Loan for which the first disbursement is made before such date if the eligible institution at which the student has been accepted for enrollment, or at which the student is in attendance, has— (1) determined and documented the student’s need for the loan based on the student’s estimated cost of attendance (as determined under section 1087ll of this title) and the student’s estimated financial assistance, including a loan which qualifies for interest subsidy payments under section 1078 of this title; and (2) provided the lender a statement— (A) certifying the eligibility of the student to receive a loan under this section and the amount of the loan for which such student is eligible, in accordance with subsection (c); and (B) setting forth a schedule for disbursement of the proceeds of the loan in installments, consistent with the requirements of section 1078–7 of this title. (c) Determination of amount of loan The determination of the amount of a loan by an eligible institution under subsection (b) shall be calculated by subtracting from the estimated cost of attendance at the eligible institution any estimated financial assistance reasonably available to such student. An eligible institution may not, in carrying out the provisions of subsection (b) of this section, provide a statement which certifies the eligibility of any student to receive any loan under this section in excess of the amount calculated under the preceding sentence. (d) Loan limits (1) In general Except as provided in paragraphs (2), (3), and (4), the annual and aggregate limits for loans under this section shall be the same as those established under section 1078(b)(1) of this title, less any amount received by such student pursuant to the subsidized loan program established under section 1078 of this title. (2) Limits for graduate, professional, and independent postbaccalaureate students (A) Annual limits The maximum annual amount of loans under this section a graduate or professional student, or a student described in clause (ii), may borrow in any academic year (as defined in section 1088(a)(2) of this title) or its equivalent shall be the amount determined under paragraph (1), plus— (i) in the case of such a student who is a graduate or professional student attending an eligible institution, $12,000; and (ii) notwithstanding paragraph (4), in the case of an independent student, or a dependent student whose parents are unable to borrow under section 1078–2 of this title or the Federal Direct PLUS Loan Program, who has obtained a baccalaureate degree and who is enrolled in coursework specified in paragraph (3)(B) or (4)(B) of section 1091(b) of this title— (I) $7,000 for coursework necessary for enrollment in a graduate or professional program; and (II) $7,000 for coursework necessary for a professional credential or certification from a State required for employment as a teacher in an elementary or secondary school, except in cases where the Secretary determines that a higher amount is warranted in order to carry out the purpose of this part with respect to students engaged in specialized training requiring exceptionally high costs of education, but the annual insurable limit per student shall not be deemed to be exceeded by a line of ...

    11 other bills also change this section · Follow it → Official text at uscode.house.gov ↗

  • § 1087e Terms and conditions of loans Amends

    20 U.S.C. § 1087e — at 1087e(b), 1087e(d), 1087e(m), 1087e(g), 1087e(f)(1), and 1087e(e)(2)

    The law today

    (a) In general (1) Parallel terms, conditions, benefits, and amounts Unless otherwise specified in this part, loans made to borrowers under this part shall have the same terms, conditions, and benefits, and be available in the same amounts, as loans made to borrowers, and first disbursed on June 30, 2010, under sections 1078, 1078–2, 1078–3, and 1078–8 of this title. (2) Designation of loans Loans made to borrowers under this part that, except as otherwise specified in this part, have the same terms, conditions, and benefits as loans made to borrowers under— (A) section 1078 of this title shall be known as “Federal Direct Stafford Loans”; (B) section 1078–2 of this title shall be known as “Federal Direct PLUS Loans”; (C) section 1078–3 of this title shall be known as “Federal Direct Consolidation Loans”; and (D) section 1078–8 of this title shall be known as “Federal Direct Unsubsidized Stafford Loans”. (3) Termination of authority to make interest subsidized loans and Federal Direct PLUS loans to graduate and professional students (A) Termination of authority to make interest subsidized loans to graduate and professional students Subject to subparagraph (B), and notwithstanding any provision of this part or part B— (i) for any period of instruction beginning on or after July 1, 2012, a graduate or professional student shall not be eligible to receive a Federal Direct Stafford loan under this part; and (ii) for any period of instruction beginning on July 1, 2012, and ending on June 30, 2026, the maximum annual amount of Federal Direct Unsubsidized Stafford loans such a student may borrow in any academic year (as defined in section 1088(a)(2) of this title) or its equivalent shall be the maximum annual amount for such student determined under section 1078–8 of this title, plus an amount equal to the amount of Federal Direct Stafford loans the student would have received in the absence of this subparagraph. (B) Exception Subparagraph (A) shall not apply to an individual enrolled in course work specified in paragraph (3)(B) or (4)(B) of section 1091(b) of this title. (C) Termination of authority to make Federal Direct PLUS loans to graduate and professional students Subject to paragraph (8) and notwithstanding any provision of this part or part B, for any period of instruction beginning on or after July 1, 2026, a graduate or professional student shall not be eligible to receive a Federal Direct PLUS Loan under this part. (4) Graduate and professional annual and aggregate limits for Federal Direct Unsubsidized Stafford loans beginning July 1, 2026 (A) Annual limits beginning July 1, 2026 Subject to paragraphs (7)(A) and (8), beginning on July 1, 2026, the maximum annual amount of Federal Direct Unsubsidized Stafford loans— (i) a graduate student, who is not a professional student, may borrow in any academic year or its equivalent shall be $20,500; and (ii) a professional student may borrow in any academic year or its equivalent shall be $50,000. (B) Aggregate limits Subject to paragraphs (6), (7)(A), and (8), beginning on July 1, 2026, the maximum aggregate amount of Federal Direct Unsubsidized Stafford loans, in addition to the amount borrowed for undergraduate education, that— (i) a graduate student— (I) who is not (and has not been) a professional student, may borrow for programs of study described in subparagraph (C)(i) shall be $100,000; or (II) who is (or has been) a professional student, may borrow for programs of study described in subparagraph (C)(i) shall be an amount equal to— (aa) $200,000; minus (bb) the amount such student borrowed for programs of study described in subparagraph (C)(ii); and (ii) a professional student— (I) who is not (and has not been) a graduate student, may borrow for programs of study described in subparagraph (C)(ii) shall be $200,000; or (II) who is (or has been) a graduate student, may borrow for programs of study described in subparagraph (C)(ii) shall be an amount equal to— (aa) $200,000...

    314 other bills also change this section · Follow it → Official text at uscode.house.gov ↗

Also cites: 15 U.S.C. § 1650, 42 U.S.C. § 9902

How this bill changes current law

2 changes Share ↗

Compared against current U.S. Code AI-generated reading aid — verify against the official bill.

The bill introduces a new structured repayment and forgiveness program for student loans while capping interest rates on federal direct loans.

  • 20 U.S.C. 1087e

    ``(8) Rate of interest for all new federal direct loans.-- Notwithstanding any other provision of this Act, with respect to a loan under this part for which the first disbursement of principal is made (or in the case of a Federal Direct Consolidation Loan, for which the application is received) on or after October 1, 2020, or the date of enactment of the Student Loan Fairness Act, whichever is later, the applicable rate of interest shall not exceed 3.4 percent.''.

    This establishes a maximum interest rate of 3.4% for new federal direct loans.

  • 20 U.S.C. 1078

    The Secretary shall carry out a program (to be known as the `10/10 Loan Repayment Plan') under which-- ...

    This creates a new repayment structure allowing borrowers to cap monthly payments based on income and to potentially have their loans forgiven after making 120 payments.

Action History

  1. Introduced in House

  2. Introduced in House

  3. Referred to the Committee on Education and Labor, and in addition to the Committees on Financial Services, and Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.

  4. Referred to the Committee on Education and Labor, and in addition to the Committees on Financial Services, and Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.

  5. Referred to the Committee on Education and Labor, and in addition to the Committees on Financial Services, and Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.

Sponsors

Sponsorship breakdown

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1 sponsors · 0 co-sponsors · 546 not signed on

Sponsors (1)

Co-sponsors (0)

None.

Not signed on (546)

546 members have not signed on to this bill.

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"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Subjects

finance education
Cross-referencing the record. Reading this bill against every other bill in the corpus by meaning, not keywords. Only the first open is slow. It’s instant for you after this. Matching · Ranking · Engrossing

Frequently asked questions

What does HR 3257 do?
Student Loan Fairness Act This bill addresses repayment plans, forgiveness, and applicable interest rates for student loans. Among other things, the bill establishes an income-based 10/10 Loan Repayment Plan and specifies the calculation of monthly loan payments under the plan for borrowers of Federal Family Education Loans (FFELs) and Direct Loans; establishes a 10/10 Loan Forgiveness Program that provides FFEL and Direct Loan forgiveness to borrowers who, over 10 years, have made 120 monthly payments under the 10/10 Loan Repayment Plan or under another repayment plan that required them to make payments at least as large as those they would have made under the 10/10 Loan Repayment Plan; caps the interest rate on new Direct Loans at 3.4%; revises the Public Service Loan Forgiveness (PSLF) program to forgive the Direct Loans of participants who have made 60 (rather than 120) monthly payments on such loans pursuant to specified repayment plans; includes primary care physicians in medically underserved areas in the PSLF program; allows certain borrowers to consolidate their private education loans as Direct Consolidation Loans; directs the Consumer Financial Protection Bureau to issue regulations that require private education lenders to sell private education loans to the Department of Education (ED) for consolidation as Direct Consolidation Loans; and requires ED to pay the interest that accrues on certain student loans due to the borrower's lack of full-time employment for an interest-free deferment period of up to three years.
Who sponsors HR 3257?
HR 3257 is sponsored by Bass, Karen (Democratic).
What is the current status of HR 3257?
This bill died with 116th Congress. It reached “In Committee” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
Where can I track HR 3257?
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