The loans in question are Direct Stafford loans, which are currently being offered to students with a 3.4 percent interest rate. But this rate has so far only been applied to students who received loans between July 1st, 2011 and July 1st, 2013. If passed, this bill would extend the low interest rate to undergraduates who received loans between July 1st, 2011 and July 1st, 2014.
This bill also has a provision that has nothing to do with education. If S. 1238 is enacted, it would change the requirements for how much money an employee with a tax-exempt pension plan has to give back to the state if that employee has died. This amendment is aimed at making sure the beneficiaries of the deceased employee — their spouse or a disabled/chronically-ill dependent — don’t get locked into a burdensome annuity contract with an insurance company.