1. Short title This Act may be cited as the Student Loan Relief Act of 2017 . 2. Reduction of interest rates for Federal Direct Student Loans Section 455(b) of the Higher Education Act of 1965 ( 20 U.S.C. 1087e(b) ) is amended by adding at the end the following: (11) Interest rate provisions for new loans on or after july 1, 2018 (A) Rates for undergraduate fdsl and fdusl Notwithstanding the preceding paragraphs of this subsection, for Federal Direct Stafford Loans and Federal Direct Unsubsidized Stafford Loans issued to undergraduate students, for which the first disbursement is made on or after July 1, 2018, the applicable rate of interest shall, for loans disbursed during any 12-month period beginning on July 1 and ending on June 30, be determined on the preceding June 1 and be equal to the lesser of— (i) a rate equal to the high yield of the 10-year Treasury note auctioned at the final auction held prior to such June 1 plus the Federal Reserve discount rate charged for primary credit on the date of such auction, as authorized under section 14(d) of the Federal Reserve Act ( 12 U.S.C. 357 ); or (ii) 4 percent. (B) Rates for graduate and professional fdusl Notwithstanding the preceding paragraphs of this subsection, for Federal Direct Unsubsidized Stafford Loans issued to graduate or professional students, for which the first disbursement is made on or after July 1, 2018, the applicable rate of interest shall, for loans disbursed during any 12-month period beginning on July 1 and ending on June 30, be determined on the preceding June 1 and be equal to the lesser of— (i) a rate equal to the high yield of the 10-year Treasury note auctioned at the final auction held prior to such June 1 plus the Federal Reserve discount rate charged for primary credit on the date of such auction, as authorized under section 14(d) of the Federal Reserve Act ( 12 U.S.C. 357 )