1. Short title This Act may be cited as the Student Loan Fair Prepayment Act . 2. Application of prepayment amounts for FFEL and Direct Loans Section 455(d) of the Higher Education Act of 1965 ( 20 U.S.C. 1087e(d) ) is amended by adding at the end the following new paragraph: (6) Application of prepayment amounts (A) Requirement Notwithstanding any other provision of this subsection or any other provision of law, with respect to loans made to an eligible borrower under this part or part B, which are held by the same holder and— (i) which have different applicable rates of interest, the holder of such loans shall, unless otherwise requested by the borrower in writing, apply the borrower’s prepayment amount (within the meaning of section 682.209(b)(2) of title 34, Code of Federal Regulations, or a successor regulation) for one or more of such loans, first toward the outstanding balance of principal due on the loan with the highest applicable rate of interest among such loans