; and (B) by striking on or after July 1, 2013 and inserting on or after July 1, 2013, and before July 1, 2017 each place the term appears; (2) by redesignating paragraphs (9) and (10) as paragraphs (10) and (11), respectively; and (3) by inserting after paragraph (8) the following: (9) Interest rate provisions for new loans on or after July 1, 2017 (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, 2017, the applicable rate of interest shall, 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— (i) the bond equivalent rate of 91-day Treasury bills auctioned at the final auction held prior to such June 1; plus (ii) 1.09 percent, except that such rate shall not exceed 5 percent. (B) In school and grace period rules for undergraduates Notwithstanding the preceding paragraphs of this subsection, with respect to any Federal Direct Stafford Loan or Federal Direct Unsubsidized Stafford Loan issued to an undergraduate student for which the first disbursement is made on or after July 1, 2017, the applicable rate of interest for interest which accrues— (i) prior to the beginning of the repayment period of the loan