I 

108TH CONGRESS 

1ST SESSION H. R. 2505

To amend the Higher Education Act of 1965 to permit refinancing of student 

consolidation loans, increase Pell Grant maximum awards, and for other 

purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JUNE 18, 2003

Ms. DELAURO introduced the following bill; which was referred to the 

Committee on Education and the Workforce 

A BILL

To amend the Higher Education Act of 1965 to permit 

refinancing of student consolidation loans, increase Pell 

Grant maximum awards, and for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘College Loan Assist5 ance Act of 2003’’. 
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1 SEC. 2. REMOVAL OF PROHIBITION ON REFINANCING CON2 SOLIDATION LOANS. 

3 (a) REMOVAL OF PROHIBITION.—Section 428C(a)(3) 

4 the Higher Education Act of 1965 (20 U.S.C. 1078–

5 3(a)(3)) is amended—

6 (1) by striking subparagraph (B); 

7 (2) in subparagraph (C), by striking ‘‘subpara8 graphs (A) and (B)’’ and inserting ‘‘subparagraph 

9 (A)’’; and 

10 (3) by redesignating subparagraph (C) as sub11 paragraph (B). 

12 (b) REDUCTION OF CAP ON INTEREST RATE.—Sec13 tion 427A(l)(3) of such Act (20 U.S.C. 1077a(l)(3)) is 

14 amended by striking subparagraph (B) and inserting the 

15 following: 

16 ‘‘(B) 6.8 percent.’’. 

17 SEC. 3. EXTENSION AND INCREASE OF PELL GRANT MAX18 IMUM AMOUNTS. 

19 Section 401(b)(2)(A) of the Higher Education Act of 

20 1965 (20 U.S.C. 1070a(b)(2)(A)) is amended—

21 (1) by striking ‘‘and’’ at the end of clause (iv); 

22 (2) by striking the comma at the end of clause 

23 (v) and inserting a semicolon; and 

24 (3) by inserting after clause (v) the following 

25 new clauses: 

26 ‘‘(vi) $7,000 for academic year 2004–2005; and 
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1 ‘‘(vii) $7,000 for academic year 2006–2006,’’. 

2 SEC. 4. ELIMINATION OF LOAN FEES TO BORROWERS. 

3 (a) FEDERAL FAMILY EDUCATION LOAN PRO4 GRAM.—Section 438(c) of the Higher Education Act of 

5 1965 (20 U.S.C. 1087–1(c)) is amended by adding at the 

6 end the following new paragraph: 

7 ‘‘(9) ORIGINATION FEES TERMINATED.—Not8 withstanding any other provision of this subsection, 

9 with respect to any loan made, insured, or guaran10 teed under this part on or after the first July 1 after 

11 the date of enactment of the Student Loan Relief 

12 Act of 2003—

13 ‘‘(A) no eligible lender may collect directly 

14 or indirectly from any borrower any origination 

15 fee with respect to such loan, or any other fee 

16 relating to the origination of a loan however de17 scribed; and 

18 ‘‘(B) the Secretary shall not collect any 

19 origination fee from the lender under this sub20 section.’’. 

21 (b) FEDERAL DIRECT LOAN PROGRAM.—Section 

22 455(c) of such Act (20 U.S.C. 1087e(c)) is amended to 

23 read as follows: 

24 ‘‘(c) LOAN FEE.—
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1 ‘‘(1) TEMPORARY PROVISION.—Subject to para2 graph (2), the Secretary shall charge the borrower 

3 of a loan made under this part an origination fee of 

4 4.0 percent of the principal amount of loan. 

5 ‘‘(2) TERMINATION OF ORIGINATION FEE.—

6 With respect to any loan made under this part on 

7 or after the first July 1 after the date of enactment 

8 of Student Loan Relief Act of 2003, the Secretary 

9 shall not collect directly or indirectly from any bor10 rower any origination fee with respect to such loan, 

11 or any other fee relating to the origination of a loan 

12 however described.’’.

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