[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5715 Reported in House (RH)]
Union Calendar No. 361
110th CONGRESS
2d Session
H. R. 5715
[Report No. 110-583]
To ensure continued availability of access to the Federal student loan
program for students and families.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
April 8, 2008
Mr. George Miller of California (for himself, Mr. McKeon, Mr. Hinojosa,
Mr. Altmire, Ms. Shea-Porter, Mr. Hare, Mr. Holt, Mr. Courtney, Mr.
Grijalva, Mr. Sarbanes, Mr. Scott of Virginia, Ms. Woolsey, Mr. Bishop
of New York, Ms. Hirono, Mr. Loebsack, Mr. Wu, and Mr. Sestak)
introduced the following bill; which was referred to the Committee on
Education and Labor
April 14, 2008
Additional sponsors: Mr. Davis of Illinois, Mr. David Davis of
Tennessee, Mr. Keller of Florida, Mr. Olver, Ms. Eddie Bernice Johnson
of Texas, Mr. Thompson of Mississippi, Mr. Payne, Mr. Kennedy, Mr.
Ellison, Mr. Lewis of Georgia, Mr. Kildee, Mrs. McCarthy of New York,
Ms. Clarke, Ms. Linda T. Sanchez of California, Mr. Fortuno, and Mr.
Kucinich
April 14, 2008
Committed to the Committee of the Whole House on the State of the Union
and ordered to be printed
_______________________________________________________________________
A BILL
To ensure continued availability of access to the Federal student loan
program for students and families.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This title may be cited as the ``Ensuring Continued Access to
Student Loans Act of 2008''.
SEC. 2. INCREASING UNSUBSIDIZED STAFFORD LOAN LIMITS FOR UNDERGRADUATE
AND GRADUATE STUDENTS.
(a) Amendments.--Subsection (d) of section 428H of the Higher
Education Act of 1965 (20 U.S.C. 1078-8(d)) is amended to read as
follows:
``(d) Loan Limits.--
``(1) In general.--Except as provided in paragraphs (2),
(3), and (4), the annual and aggregate limits for loans under
this section shall be the same as those established under
section 428(b)(1), less any amount received by such student
pursuant to the subsidized loan program established under
section 428.
``(2) Limits for graduate and professional students.--
``(A) Annual limits.--The maximum annual amount of
loans under this section a graduate or professional
student may borrow in any academic year (as defined in
section 481(a)(2)) or its equivalent shall be the
amount determined under paragraph (1), plus--
``(i) in the case of such a student who is
a graduate or professional student attending an
eligible institution, $14,000; and
``(ii) in the case of a graduate student
enrolled in coursework specified in sections
484(b)(3)(B) and 484(b)(4)(B), $7,000;
except in cases where the Secretary determines, that a
higher amount is warranted in order to carry out the
purpose of this part with respect to students engaged
in specialized training requiring exceptionally high
costs of education, but the annual insurable limit per
student shall not be deemed to be exceeded by a line of
credit under which actual payments by the lender to the
borrower will not be made in any years in excess of the
annual limit.
``(B) Aggregate limit.--The maximum aggregate
amount of loans under this section a student described
in subparagraph (A) may borrow shall be the amount
described in paragraph (1), adjusted to reflect the
increased annual limits described in subparagraph (A),
as prescribed by the Secretary by regulation.
``(3) Limits for undergraduate dependent students.--
``(A) Annual limits.--The maximum annual amount of
loans under this section an undergraduate dependent
student (except an undergraduate dependent student
whose parents are unable to borrow under section 428B
or the Federal Direct PLUS Loan Program) may borrow in
any academic year (as defined in section 481(a)(2)) or
its equivalent shall be the sum of the amount
determined under paragraph (1), plus $2,000.
``(B) Aggregate limits.--The maximum aggregate
amount of loans under this section a student described
in subparagraph (A) may borrow shall be $31,000.
``(4) Limits for undergraduate independent students.--
``(A) Annual limits.--The maximum annual amount of
loans under this section an undergraduate independent
student, or an undergraduate dependent student whose
parents are unable to borrow under section 428B or the
Federal Direct PLUS Loan Program, may borrow in any
academic year (as defined in section 481(a)(2)) or its
equivalent shall be the sum of the amount determined
under paragraph (1), plus--
``(i) in the case of such a student
attending an eligible institution who has not
completed such student's first 2 years of
undergraduate study--
``(I) $6,000, if such student is
enrolled in a program whose length is
at least one academic year in length;
or
``(II) if such student is enrolled
in a program of undergraduate education
which is less than one academic year,
the maximum annual loan amount that
such student may receive may not exceed
the amount that bears the same ratio to
the amount specified in clause (i) as
the length of such program measured in
semester, trimester, quarter, or clock
hours bears to one academic year;
``(ii) in the case of such a student at an
eligible institution who has successfully
completed such first and second years but has
not successfully completed the remainder of a
program of undergraduate education--
``(I) $7,000; or
``(II) if such student is enrolled
in a program of undergraduate
education, the remainder of which is
less than one academic year, the
maximum annual loan amount that such
student may receive may not exceed the
amount that bears the same ratio to the
amount specified in subclause (I) as
such remainder measured in semester,
trimester, quarter, or clock hours
bears to one academic year; and
``(iii) in the case of such a student
enrolled in coursework specified in sections
484(b)(3)(B) and 484(b)(4)(B), $6,000 for
coursework necessary for enrollment in an
undergraduate degree or certificate program.
``(B) Aggregate limits.--The maximum aggregate
amount of loans under this section a student described
in subparagraph (A) may borrow shall be $57,500.
``(5) Capitalized interest.--Interest capitalized shall not
be deemed to exceed a maximum aggregate amount determined under
subparagraph (B) of paragraph (2), (3), or (4).''.
(b) Effective Date.--The amendments made by this section shall be
effective for loans issued on or after July 1, 2008.
SEC. 3. GRACE PERIOD FOR PARENT PLUS LOANS.
(a) Amendment.--Section 428B(d) (20 U.S.C. 1078-2(d)) is amended by
amending paragraphs (1) and (2) to read as follows:
``(1) Commencement of repayment.--Repayment of principal on
loans made under this section shall--
``(A) commence not later than--
``(i) 60 days after the date such loan is
disbursed by the lender, except as provided in
clause (ii); and
``(ii) if agreed upon by a parent borrower,
the day after 6 months after the date the
student for whom the loan is borrowed ceases to
carry at least one-half the normal full-time
academic workload (as determined by the
institution); and
``(B) be subject to deferral during any period
during which the graduate or professional student or
the parent meets the conditions required for a deferral
under section 427(a)(2)(C) or 428(b)(1)(M).
``(2) Capitalization of interest.--
``(A) In general.--Interest on loans made under
this section--
``(i) which accrues prior to the beginning
of repayment under paragraph (1)(A)(i), shall
be added to the principal amount of the loan;
and
``(ii) which accrues prior to the beginning
of repayment under paragraph (1)(A)(ii) or
during a period in which payments of principal
are deferred pursuant to paragraph (1)(B)
shall, if agreed upon by the borrower and the
lender--
``(I) be paid monthly or quarterly;
or
``(II) be added to the principal
amount of the loan not more frequently
than quarterly by the lender.
``(B) Insurable limits.--Capitalization of interest
under this paragraph shall not be deemed to exceed the
annual insurable limit on account of the borrower.''.
(b) Conforming Amendment.--Section 428(b)(7)(C) (20 U.S.C.
1078(b)(7)(C)) is amended by striking ``, 428B,''.
(c) Effective Date.--The amendments made by this section shall be
effective for loans issued on or after July 1, 2008.
SEC. 4. SPECIAL RULES FOR PLUS LOANS.
Section 428B(a)(3) is amended to read as follows:
``(3) Special rules.--
``(A) Parent borrowers.--Whenever necessary to
carry out the provisions of this section, the terms
`student' and `borrower' as used in this part shall
include a parent borrower under this section.
``(B) Extenuating circumstances.--For loans made on
or after July 1, 2008, and before July 1, 2009, a
lender may determine that a borrower meets the
extenuating circumstances requirement described in
regulations promulgated by the Secretary to carry out
this section or section 455 if the borrower is 180 or
fewer days delinquent on their home mortgage
payments.''.
SEC. 5. LENDER-OF-LAST-RESORT.
(a) In General.--Section 428(j) of the Higher Education Act of 1965
(20 U.S.C. 1078(j)) is amended--
(1) in the first sentence of paragraph (1), by striking
``students eligible to receive interest benefits paid on their
behalf under subsection (a) of this section who are otherwise
unable to obtain loans under this part'' and inserting
``students and parents who are otherwise unable to obtain loans
under this part (except for consolidation loans under section
428C) or who attend an institution of higher education in the
State that is designated under paragraph (4)'';
(2) in paragraph (2)(B), by inserting ``, in the case of
students and parents applying for loans under this subsection
because of an inability to otherwise obtain loans under this
part (except for consolidation loans under section 428C),''
after ``lender, nor'';
(3) in paragraph (3)(C)--
(A) in the first sentence, by inserting ``or
designates an institution of higher education for
participation in the program under this subsection
under paragraph (4),'' after ``under this part''; and
(B) in the third sentence, by inserting ``or to
eligible borrowers who attend an institution in the
State that is designated under paragraph (4)'' after
``problems''; and
(4) by adding at the end the following:
``(4) Institution-wide student qualification.--Upon the
request of an institution of higher education and pursuant to
standards developed by the Secretary, the guaranty agency
designated for a State shall designate such institution for
participation in the lender-of-last-resort program under this
paragraph. If the guaranty agency designates an institution
under this paragraph, such agency shall make loans, in the same
manner as such loans are made under paragraph (1), to students
and parent borrowers of the designated institution, regardless
of whether the students or parent borrowers are otherwise
unable to obtain loans under this part (other than a
consolidation loan under section 428C).''.
(b) Effective Date.--The amendments made by subsection (a) shall
take effect on the date of enactment of this Act.
SEC. 6. MANDATORY ADVANCES.
(a) In General.--Section 421(b) of the Higher Education Act of 1965
(20 U.S.C. 1071(b)) is amended--
(1) in paragraph (4), by striking ``programs, and'' and
inserting ``programs,'';
(2) in paragraph (5), by striking ``agencies.'' and
inserting ``agencies, and''; and
(3) by adding at the end the following:
``(6) there is authorized to be appropriated, and there are
appropriated, out of any money in the Treasury not otherwise
appropriated, such sums as may be necessary for the purpose of
carrying out section 422(c)(7).''.
(b) Effective Date.--The amendments made by subsection (a) shall
take effect on the date of enactment of this Act.
SEC. 7. TEMPORARY AUTHORITY TO PURCHASE STUDENT LOANS.
(a) Spending Authority.--
(1) Authority granted.--The first sentence of section
451(a) of the Higher Education Act of 1965 (20 U.S.C. 1087a(a))
is amended--
(A) by inserting ``(1)'' after ``as may be
necessary''; and
(B) by inserting before the period at the end of
such sentence the following: ``; and (2) for purchasing
loans under section 459A''.
(2) Conforming amendment.--Section 451(a) of such Act (20
U.S.C. 1087a(a)) is further amended by striking ``Such loans
shall'' and inserting ``Loans made under this part shall''.
(b) Temporary Authority.--Part D of title IV of the Higher
Education Act of 1965 (20 U.S.C. 1087a et seq.) is amended by inserting
after section 459 the following new section:
``SEC. 459A. TEMPORARY AUTHORITY TO PURCHASE STUDENT LOANS.
``(a) Authority To Purchase.--Upon a determination by the Secretary
that there is an inadequate availability of loan capital to meet the
demand for loans under sections 428, 428B, and 428H, whether as a
result of inadequate liquidity for such loans or for other reasons, the
Secretary, in consultation with the Secretary of the Treasury, is
authorized to purchase from any eligible lender, as defined by section
435(d)(1), loans originated under sections 428, 428B, or 428H on or
after October 1, 2003, on such terms as the Secretary determines (after
consultation with the Secretary of the Treasury) are in the best
interest of the United States, except that any loan purchase under this
section shall not result in any cost to the Federal Government. The
Secretary shall promptly publish any determination under this
subsection in the Federal Register.
``(b) Proceeds.--The Secretary shall require, as a condition of any
purchase under subsection (a), that the funds paid by the Secretary to
any eligible lender under this section shall be used in a manner
consistent with ensuring continued participation of such lender in the
Federal student loan programs authorized under part B of this title.
``(c) Expiration of Authority.--The Secretary's authority to
purchase loans under this section shall expire on July 1, 2009.''.
(c) Contracting Authority.--Section 456(b) of the Higher Education
Act of 1965 (20 U.S.C. 1087f(b)) is amended by inserting ``or
purchased'' after ``loans made'' each place it appears in paragraphs
(2) and (3).
SEC. 8. SENSE OF CONGRESS.
It is a sense of Congress that, at a time when our economy is
fragile and higher education and retraining opportunities are more
important than ever--
(1) the Federal financial institutions, such as the Federal
Financing Bank and Federal Reserve, and federally chartered
private entities such as the Federal Home Loan Banks and
others, should consider, in consultation with the Secretary of
Treasury and the Secretary of Education, using available
authorities in a timely manner, if needed, to assist in
ensuring that students and families can access Federal student
loans for academic year 2008-2009, and if needed in the
subsequent academic year, in a manner that results in no
increased costs to taxpayers; and
(2) any action taken as a result of such consideration
should in no way limit or delay the Secretary of Education's
authority to operate the lender-of-last-resort provisions of
section 428(j) of the Higher Education Act of 1965 (as amended
by this Act), nor the authority to purchase Federal Family
Education Loan Program loans, as authorized by section 459A of
such Act (as added by this Act).
Union Calendar No. 361
110th CONGRESS
2d Session
H. R. 5715
[Report No. 110-583]
_______________________________________________________________________
A BILL
To ensure continued availability of access to the Federal student loan
program for students and families.
_______________________________________________________________________
April 14, 2008
Committed to the Committee of the Whole House on the State of the Union
and ordered to be printed