; and (2) by inserting after paragraph (8) the following: (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, 2018, 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. . 5. 10/10 Loan Repayment Plan as plan selected by the Secretary (a) FFEL Loans (1) In general Section 428(b)(9) of the Higher Education Act of 1965 ( 20 U.S.C. 1078(b)(9) ) is amended— (A) in subparagraph (A)— (i) by striking and at the end of clause (iv); (ii) in clause (v), by striking the period at the end and inserting ; and ; and (iii) by adding at the end the following new clause: (vi) beginning October 1, 2018, a 10/10 Loan Repayment Plan, with varying annual repayment amounts based on the discretionary income of the borrower, in accordance with section 493E. ; and (B) in subparagraph (B), by striking (A)(i) and inserting (A)(vi) . (2) Effective date The amendment made by paragraph (1)(B) shall be effective beginning October 1, 2018. (b) Direct Loans (1) In general Section 455(d) of the Higher Education Act of 1965 ( 20 U.S.C. 1087e(d) ) is amended— (A) in paragraph (1)— (i) by striking and at the end of subparagraph (D); (ii) in subparagraph (E), by striking the period at the end and inserting ; and ; and (iii) by adding at the end the following new subparagraph: (F) beginning on October 1, 2018, a 10/10 Loan Repayment Plan, with varying annual repayment amounts based on the discretionary income of the borrower, in accordance with section 493E. ; and (B) in paragraph (2)— (i) by striking may and inserting shall