I 

108TH CONGRESS 

1ST SESSION H. R. 3618

To ensure that all college students and their families have the tools and 

resources to adequately save for, finance, and repay their postsecondary 

and post-baccalaureate expenses. 

IN THE HOUSE OF REPRESENTATIVES 

NOVEMBER 21, 2003

Mr. MENENDEZ (for himself, Mr. PAYNE, Mr. HINOJOSA, Mr. OWENS, Mr. 

CLYBURN, and Mr. FATTAH) introduced the following bill; which was referred to the Committee on Education and the Workforce, and in addition 

to the Committee on Ways and Means, for a period to be subsequently 

determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned 

A BILL

To ensure that all college students and their families have 

the tools and resources to adequately save for, finance, 

and repay their postsecondary and post-baccalaureate expenses.

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 ‘‘Higher Education Af5 fordability Resource Act’’. 
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1 SEC. 2. HOPE SCHOLARSHIP CREDIT EXPANDED TO COVER 

2 EXPENSES FOR OTHER EDUCATIONAL EX3 PENSES. 

4 (a) IN GENERAL.—Sections 25A and 6050S of the 

5 Internal Revenue Code of 1986 are each amended by 

6 striking ‘‘qualified tuition and related expenses’’ each 

7 place it appears and inserting ‘‘qualified higher education 

8 expenses’’. 

9 (b) QUALIFIED HIGHER EDUCATION EXPENSES.—

10 Section 25A(f)(1) of such Code is amended to read as fol11 lows: 

12 ‘‘(1) QUALIFIED HIGHER EDUCATION EX13 PENSES.—The term ‘qualified higher education ex14 penses’ means the qualified higher education ex15 penses (as defined by section 529(e)(3) without re16 gard to subparagraph (B) thereof) required for the 

17 enrollment or attendance of—

18 ‘‘(A) the taxpayer, 

19 ‘‘(B) the taxpayer’s spouse, or 

20 ‘‘(C) any dependent of the taxpayer with 

21 respect to whom the taxpayer is allowed a de22 duction under section 151, 

23 at an eligible educational institution for courses of 

24 instruction of such individual at such institution.’’. 

25 (c) EFFECTIVE DATE.—The amendments made by 

26 this section shall apply to expenses paid after December 
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1 31, 2003 (in taxable years ending after such date), for 

2 education furnished in academic periods beginning after 

3 such date. 

4 SEC. 3. LOAN FORGIVENESS FOR PUBLIC SERVICE EM5 PLOYEES. 

6 Section 428K (20 U.S.C. 1078–11) is amended to 

7 read as follows: 

8 ‘‘SEC. 428K. LOAN FORGIVENESS FOR PUBLIC SERVICE EM9 PLOYEES. 

10 ‘‘(a) PURPOSES.—The purposes of this section are—

11 ‘‘(1) to reduce the burden of student debt, par12 ticularly for Americans who dedicate their careers to 

13 meeting certain urgent national needs; and 

14 ‘‘(2) to attract more excellent individuals into 

15 important public service careers. 

16 ‘‘(b) LOAN FORGIVENESS.—

17 ‘‘(1) IN GENERAL.—The Secretary shall assume 

18 the obligation to repay, pursuant to subsection (c), 

19 a loan made under section 428 or 428H, a Federal 

20 Direct Stafford Loan or Federal Direct Unsub21 sidized Stafford Loan, a Federal Direct Consolida22 tion Loan, or a Federal Perkins Loan for any new 

23 borrower after the date of enactment of the Higher 

24 Education Amendments of 1998, who—
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1 ‘‘(A) is employed full time in a qualified 

2 public service position described in paragraph 

3 (2); and 

4 ‘‘(B) is not in default on a loan for which 

5 the borrower seeks forgiveness. 

6 ‘‘(2) QUALIFIED PUBLIC SERVICE POSITIONS.—

7 For purposes of this section, an individual shall be 

8 treated as employed in a qualified public service po9 sition if the individual is any of the following: 

10 ‘‘(A) HIGHLY QUALIFIED TEACHERS IN

11 LOW-INCOME COMMUNITIES AND OF MATHE12 MATICS, SCIENCE, AND BILINGUAL AND SPE13 CIAL EDUCATION.—An individual who—

14 ‘‘(i) is highly qualified as such term is 

15 defined in section 9101 of the Elementary 

16 and Secondary Education Act of 1965; and 

17 ‘‘(ii)(I) has obtained employment as a 

18 teacher for service in a public or nonprofit 

19 private elementary or secondary school 

20 which is in the school district of a local 

21 educational agency which is eligible in such 

22 year for assistance pursuant to title I of 

23 the Elementary and Secondary Education 

24 Act of 1965, and which for the purpose of 

25 this paragraph and for that year has been 
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1 determined by the Secretary (pursuant to 

2 regulations and after consultation with the 

3 State educational agency of the State in 

4 which the school is located) to be a school 

5 in which the enrollment of children counted 

6 under section 1113(a)(5) of the Elemen7 tary and Secondary Education Act of 1965 

8 exceeds 40 percent of the total enrollment 

9 of that school; or 

10 ‘‘(II) has obtained employment as a 

11 full-time teacher of mathematics, science, 

12 or bilingual or special education. 

13 ‘‘(B) NURSES IN LOW INCOME COMMU14 NITIES.—An individual who has obtained em15 ployment —

16 ‘‘(i)(I) in a clinical setting; or 

17 ‘‘(II) as a member of the nursing fac18 ulty at an accredited school of nursing (as 

19 those terms are defined in section 801 of 

20 the Public Health Service Act (42 U.S.C. 

21 296)); and 

22 ‘‘(ii) serves a low-income or needy 

23 community. 

24 ‘‘(C) CHILD WELFARE WORKERS.—An in25 dividual who—
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1 ‘‘(i) has completed a degree in social 

2 work or related field with a focus on serv3 ing children and families (as determined in 

4 accordance with regulations prescribed by 

5 the Secretary); and 

6 ‘‘(ii) has obtained employment in pub7 lic or private child welfare services. 

8 ‘‘(D) FIRST RESPONDERS IN LOW-INCOME

9 COMMUNITIES.—An individual who, as deter10 mined by the Secretary of Education by regula11 tion—

12 ‘‘(i) has obtained employment as a 

13 firefighter, police officer, or emergency 

14 medical technician; and 

15 ‘‘(ii) serves a low-income community. 

16 ‘‘(c) LOAN REPAYMENT.—

17 ‘‘(1) IN GENERAL.—The Secretary shall assume 

18 the obligation to repay—

19 ‘‘(A) after each of the first or second years 

20 of service by an individual in a qualified public 

21 service position, 15 percent of the total amount 

22 of principal and interest of the loans described 

23 in subsection (b)(1) to such individual that are 

24 outstanding immediately preceding such first 

25 year of such service; 
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1 ‘‘(B) after each of the third or fourth years 

2 of such service, 20 percent of such total 

3 amount; and 

4 ‘‘(C) after the fifth year of such service, 30 

5 percent of such total amount. 

6 ‘‘(2) TREATMENT OF CONSOLIDATION LOANS.—

7 A loan amount for a loan made under section 428C 

8 or for a Federal Direct Consolidation Loan may be 

9 a qualified loan amount for the purposes of this sub10 section only to the extent that such loan amount was 

11 used to repay a loan described in subsection (b)(1) 

12 for a borrower who meets the requirements of sub13 section (b), as determined in accordance with regula14 tions prescribed by the Secretary. 

15 ‘‘(3) CONSTRUCTION.—Nothing in this section 

16 shall be construed to authorize the refunding of any 

17 repayment of a loan made under section 428 or 

18 428H, a Federal Direct Stafford Loan or Federal 

19 Direct Unsubsidized Stafford Loan, a Federal Direct 

20 Loan, or a Federal Perkins Loan. 

21 ‘‘(4) INTEREST.—If a portion of a loan is re22 paid by the Secretary under this section for any 

23 year, the proportionate amount of interest on such 

24 loan that accrues for such year shall be repaid by 

25 the Secretary. 
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1 ‘‘(5) INELIGIBILITY OF NATIONAL SERVICE

2 AWARD RECIPIENTS.—No student borrower may, for 

3 the same service, receive a benefit under both this 

4 section and subtitle D of title I of the National and 

5 Community Service Act of 1990 (42 U.S.C. 12601 

6 et seq.). 

7 ‘‘(6) INELIGIBILITY FOR DOUBLE BENEFITS.—

8 No borrower may receive a reduction of loan obliga9 tions under both this section and section 428J or 

10 460. 

11 ‘‘(7) CONTINUED ELIGIBILITY OF TEACHERS.—

12 Any teacher who performs service in a school that—

13 ‘‘(A) meets the requirements of subsection 

14 (b)(2)(A)(ii)(I) in any year during such service; 

15 and 

16 ‘‘(B) in a subsequent year fails to meet the 

17 requirements of such subsection, 

18 may continue to teach in such school and shall be 

19 eligible for loan forgiveness pursuant to subsection 

20 (b). 

21 ‘‘(d) REPAYMENT TO ELIGIBLE LENDERS AND

22 HOLDERS.—The Secretary shall pay to each eligible lend23 er or holder for each fiscal year an amount equal to the 

24 aggregate amount of the lender’s or holder’s loans that 
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1 are subject to repayment pursuant to this section for such 

2 year. 

3 ‘‘(e) APPLICATION FOR REPAYMENT.—

4 ‘‘(1) IN GENERAL.—Each eligible individual de5 siring loan repayment under this section shall sub6 mit a complete and accurate application to the Sec7 retary at such time, in such manner, and containing 

8 such information as the Secretary may require. 

9 ‘‘(2) CONDITIONS.—An eligible individual may 

10 apply for loan repayment under this section after 

11 completing each of the consecutive years of quali12 fying service described in subsection (c)(1). The bor13 rower may elect to receive forbearance while engaged 

14 in qualifying service described in subsection (c)(1) 

15 unless the borrower is in deferment while so en16 gaged. 

17 ‘‘(f) REGULATIONS.—The Secretary is authorized to 

18 prescribe such regulations as may be necessary to carry 

19 out the provisions of this section. 

20 ‘‘(g) DEFINITIONS.—In this section: 

21 ‘‘(1) CHILD WELFARE SERVICES.—The term 

22 ‘child welfare services’ has the meaning given the 

23 term in section 425 of the Social Security Act. 
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1 ‘‘(2) DEGREE.—The term ‘degree’ means an as2 sociate’s or bachelor’s degree awarded by an institu3 tion of higher education. 

4 ‘‘(3) ELIGIBLE NURSE.—The term ‘eligible 

5 nurse’ means a nurse who meets all of the following: 

6 ‘‘(A) The nurse graduated from—

7 ‘‘(i) an accredited school of nursing 

8 (as those terms are defined in section 801 

9 of the Public Health Service Act (42 

10 U.S.C. 296)); 

11 ‘‘(ii) a nursing center; or 

12 ‘‘(iii) an academic health center that 

13 provides nurse training. 

14 ‘‘(B) The nurse holds a valid and unre15 stricted license to practice nursing in the State 

16 in which the nurse practices in a clinical set17 ting. 

18 ‘‘(C) The nurse holds 1 or more of the fol19 lowing: 

20 ‘‘(i) A graduate degree in nursing, or 

21 an equivalent degree. 

22 ‘‘(ii) A nursing degree from a colle23 giate school of nursing (as defined in sec24 tion 801 of the Public Health Service Act 

25 (42 U.S.C. 296)). 
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1 ‘‘(iii) A nursing degree from an asso2 ciate degree school of nursing (as defined 

3 in section 801 of the Public Health Service 

4 Act (42 U.S.C. 296)). 

5 ‘‘(iv) A nursing degree from a diploma 

6 school of nursing (as defined in section 

7 801 of the Public Health Service Act (42 

8 U.S.C. 296)). 

9 ‘‘(4) LOW-INCOME COMMUNITY.—In this sub10 section, the term ‘low-income community’ means a 

11 community in which 70 percent of households earn 

12 less than 85 percent of the State median household 

13 income. 

14 ‘‘(5) YEAR.—The term ‘year’, where applied to 

15 service as a teacher (or service as a member of an 

16 accredited school of nursing (as those terms are de17 fined in section 801 of the Public Health Service Act 

18 (42 U.S.C. 296))), means an academic year as de19 fined by the Secretary.’’. 

20 SEC. 4. YEAR-ROUND PELL GRANTS. 

21 Section 401(b)(6) (20 U.S.C. 1070a(b)(6)) is amend22 ed by striking ‘‘may allow, on a case-by-case basis,’’ and 

23 inserting ‘‘shall allow’’. 
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1 SEC. 5. TREATMENT OF PREPAYMENT AND SAVINGS PLANS 

2 UNDER STUDENT FINANCIAL AID NEEDS 

3 ANALYSIS. 

4 (a) DEFINITION OF ASSETS.—Subsection (f) of sec5 tion 480 of the Higher Education Act of 1965 (20 U.S.C. 

6 1087vv(j)) is amended—

7 (1) in paragraph (1), by inserting ‘‘qualified 

8 education benefit (except as provided in paragraph 

9 (3)),’’ after ‘‘tax shelters,’’; and 

10 (2) by adding at the end the following new 

11 paragraphs: 

12 ‘‘(3) A qualified education benefit shall not be consid13 ered an asset of the student under section 475 of this part. 

14 ‘‘(4) For purposes of this subsection, the term ‘quali15 fied education benefit’ means—

16 ‘‘(A) a program which is described in clause (i) 

17 of section 529(b)(1)(A) of the Internal Revenue 

18 Code of 1986 and which meets the requirements of 

19 section 529(b)(1)(B) of such Code; 

20 ‘‘(B) a State tuition program described in 

21 clause (ii) of section 529(b)(1)(A) of the Internal 

22 Revenue Code of 1986 which meets the requirements 

23 of section 529(b)(1)(B) of such Code; and 

24 ‘‘(C) a Coverdell education savings account (as 

25 defined in section 530(b)(1) of the Internal Revenue 

26 Code of 1986).’’. 
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1 (b) DEFINITION OF OTHER FINANCIAL ASSIST2 ANCE.—Subsection (j) of section 480 of the Higher Edu3 cation Act of 1965 (20 U.S.C. 1087vv(j)) is amended—

4 (1) by striking ‘‘; TUITION PREPAYMENT

5 PLANS’’ in the heading of such subsection; 

6 (2) by striking ‘‘(1) For purposes’’ and insert7 ing ‘‘For purposes’’; and 

8 (3) by striking paragraph (2). 

9 (c) EFFECTIVE DATE.—The amendments made by 

10 this section shall apply with respect to determinations of 

11 need under part F of title IV of the Higher Education 

12 Act of 1965 for academic years beginning on or after July 

13 1, 2005. 

14 SEC. 6. SPECIAL TRANSITION ASSISTANCE PLANS FOR BOR15 ROWERS. 

16 (a) PLANS AUTHORIZED.—Section 428(b)(9) (20 

17 U.S.C. 1078(b)(9)) is amended by adding at the end the 

18 following new subparagraph: 

19 ‘‘(C) SPECIAL TRANSITION ASSISTANCE

20 PLANS.—In addition to the plans required by 

21 subparagraph (A), the lender shall provide a 

22 borrower who has not yet completed 12 months 

23 in the repayment period with the option to 

24 repay a loan made under this section in accord25 ance with a special transition assistance plan. 
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1 The interest rate on a loan for which the bor2 rower elected a special transition assistance 

3 plan shall be determined in accordance with 

4 section 427A(k) or 427A(l), as applicable. If a 

5 borrower participates in a special transition as6 sistance plan for 24 or more months, and then 

7 repays the outstanding balance of the loan more 

8 than 24 months prior to the last scheduled pay9 ment on the loan, the borrower shall repay the 

10 Secretary the amount of interest that accrued 

11 on the loan during the 24 months beginning on 

12 the effective date of the plan.’’. 

13 (b) INTEREST RATES.—

14 (1) PRE-2006 LOANS.—Section 427A(k) (20 

15 U.S.C. 1077a(k)) is amended—

16 (A) by redesignating paragraph (6) as 

17 paragraph (7); and 

18 (B) by inserting after paragraph (5) the 

19 following new paragraph: 

20 ‘‘(6) SPECIAL TRANSITION ASSISTANCE PLANS

21 INTEREST RATES.—

22 ‘‘(A) IN GENERAL.—Notwithstanding para23 graph (1), with respect to any loan for which 

24 the borrower elected a special transition assist25 ance plan as provided in section 428(b)(9)(C)—
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1 ‘‘(i) for 24 months beginning on the 

2 effective date of the plan the applicable 

3 rate of interest shall be 3.4 percent; and 

4 ‘‘(ii) for the last 24 months of the 

5 scheduled repayment period the applicable 

6 rate of interest shall be computed for each 

7 calendar quarter beginning January 1, 

8 April 1, July 1, and October 1 of each 

9 year—

10 ‘‘(I) by determining the average 

11 of the bond equivalent rates of the 

12 quotes of the 3-month commercial 

13 paper (financial) rates in effect for 

14 each of the days in such quarter as 

15 reported by the Federal Reserve in 

16 Publication H–15 (or its successor) 

17 for such 3-month period; 

18 ‘‘(II) by subtracting the applica19 ble interest rates on such loans from 

20 such average bond equivalent rate; 

21 ‘‘(III) by adding 2.34 percent to 

22 the resultant percent; and by dividing 

23 the resultant percent by 4. 

24 ‘‘(B) EXCEPTION.—The interest rate on a 

25 loan for which the borrower elected a special 
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1 transition assistance plan for the period begin2 ning the first day of the last 24 months of the 

3 scheduled repayment period until the beginning 

4 of the first calendar quarter thereafter will be 

5 computed using the average of the bond equiva6 lent rates of the quotes of the 3-month commer7 cial paper (financial) rates in effect for the 

8 quarter ending the previous March 31, June 30, 

9 September 30, or December 31.’’. 

10 (2) POST-2006 LOANS.—Section 427A(l) (20 

11 U.S.C. 1077a(l)) is amended by adding at the end 

12 the following new paragraph: 

13 ‘‘(4) SPECIAL TRANSITION ASSISTANCE PLANS

14 INTEREST RATES.—

15 ‘‘(A) IN GENERAL.—Notwithstanding para16 graph (1), with respect to any loan for which 

17 the borrower elected a special transition assist18 ance plan as provided in section 428(b)(9)(C)—

19 ‘‘(i) for 24 months beginning on the 

20 effective date of the plan the applicable 

21 rate of interest shall be 3.4 percent; and 

22 ‘‘(ii) for the last 24 months of the 

23 scheduled repayment period the applicable 

24 rate of interest shall be computed for each 

25 calendar quarter beginning January 1, 
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1 April 1, July 1, and October 1 of each 

2 year—

3 ‘‘(I) by determining the average 

4 of the bond equivalent rates of the 

5 quotes of the 3-month commercial 

6 paper (financial) rates in effect for 

7 each of the days in such quarter as 

8 reported by the Federal Reserve in 

9 Publication H–15 (or its successor) 

10 for such 3-month period; 

11 ‘‘(II) by subtracting the applica12 ble interest rates on such loans from 

13 such average bond equivalent rate; 

14 ‘‘(III) by adding 2.34 percent to 

15 the resultant percent; and by dividing 

16 the resultant percent by 4. 

17 ‘‘(B) EXCEPTION.—The interest rate on a 

18 loan for which the borrower elected a special 

19 transition assistance plan for the period begin20 ning the first day of the last 24 months of the 

21 scheduled repayment period until the beginning 

22 of the first calendar quarter thereafter will be 

23 computed using the average of the bond equiva24 lent rates of the quotes of the 3-month commer25 cial paper (financial) rates in effect for the 
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1 quarter ending the previous March 31, June 30, 

2 September 30, or December 31.’’. 

3 (c) ADDITIONAL CONFORMING AMENDMENTS.—

4 (1) Section 427(a)(2)(H) (20 U.S.C. 

5 1077(a)(2)(H)) is amended by inserting after ‘‘regu6 lations of the Secretary’’ the following: ‘‘or in ac7 cordance with a special transition assistance plan as 

8 provided in section 428(b)(9)(C)’’. 

9 (2) Section 428(b)(1)(E)(i) (20 U.S.C. 

10 1078(b)(1)(E)(i)) is amended by inserting after 

11 ‘‘regulations of the Secretary’’ the following: ‘‘or in 

12 accordance with a special transition assistance plan 

13 as provided in section 428(b)(9)(C)’’. 

14 (3) Section 428(b)(1)(L)(i) (20 U.S.C. 

15 1078(b)(1)(L)(i)) is amended by inserting before ‘‘, 

16 be less than $600’’ the following: ‘‘or the borrower 

17 is in the first 24 months after the borrower elected 

18 a special transition assistance plan as provided in 

19 section 428(b)(9)(C)’’. 

20 (4) Section 428C(a)(4)(A) (20 U.S.C. 1078–

21 3(a)(4)(A)) is amended by inserting before the semi22 colon the following: ‘‘except a loan for which the bor23 rower elected a special transition assistance plan as 

24 provided in section 428(b)(9)(C)’’. 
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1 (5) Section 428J(e)(1) (20 U.S.C. 1078–

2 10(e)(1)) is amended by adding at the end the fol3 lowing new sentence: ‘‘A loan for which the borrower 

4 elected a special transition assistance plan as pro5 vided in section 428(b)(9)(C) is not eligible for re6 payment under this section.’’. 

7 SEC. 7. SUPPORT FOR ACADEMIC CREDIT TRANSFERS. 

8 Subpart 2 of part A of title IV of the Higher Edu9 cation Act of 1965 is amended—

10 (1) by redesignating section 407E as section 

11 406E; and 

12 (2) by inserting after chapter 3 (20 U.S.C. 

13 1070a–31 et seq.) the following new chapter: 

14 ‘‘CHAPTER 4—SUPPORT FOR ACADEMIC 

15 CREDIT TRANSFERS 

16 ‘‘SEC. 407A. PURPOSE. 

17 ‘‘It is the purpose of this chapter to enhance opportu18 nities of students to transfer between institutions in order 

19 to complete bachelor’s degrees by supporting the develop20 ment and implementation of articulation and guaranteed 

21 transfer agreements. 

22 ‘‘SEC. 407B. ACTIVITIES. 

23 ‘‘(a) GRANTS AUTHORIZED.—From the amounts ap24 propriated under section 407C, the Secretary shall award 

25 grants to a partnership that includes two or more institu-
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1 tions of higher education, at least one of which offers a 

2 baccalaureate or postbaccalaureate degree. 

3 ‘‘(b) USE OF FUNDS.—Grants awarded under this 

4 part shall be used for—

5 ‘‘(1) the development of policies to promote the 

6 transfer of academic credits between institutions and 

7 expanding articulation and guaranteed transfer 

8 agreements; 

9 ‘‘(2) support services to students participating 

10 in the program, such as tutoring, mentoring, and 

11 academic and personal counseling, as well as any 

12 service that facilitates the transition of students be13 tween the partner institutions; 

14 ‘‘(3) academic program enhancements at the 

15 community or technical college that result in increas16 ing the quality of the program offered and the num17 ber of student participants in the dual degree pro18 gram offered in conjunction with a baccalaureate de19 gree granting institution; and 

20 ‘‘(4) programs to identify barriers that inhibit 

21 student transfers. 

22 ‘‘(c) APPLICATIONS.—Any partnership that desires to 

23 obtain a grant under this section shall submit to the Sec24 retary an application at such time, in such manner, and 
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1 containing such information or assurances as the Sec2 retary may require. 

3 ‘‘(d) REGULATIONS.—The Secretary shall prescribe 

4 such regulations as may be necessary to carry out this 

5 section. 

6 ‘‘SEC. 407C. AUTHORIZATION OF APPROPRIATIONS. 

7 ‘‘There are authorized to be appropriated 

8 $70,000,000 to carry out this chapter for fiscal year 2004 

9 and such sums as may be necessary for each of the 3 suc10 ceeding fiscal years.’’. 

11 SEC. 8. FINANCIAL AID ADMINISTRATOR DISCRETION. 

12 Section 479A(a) (20 U.S.C. 1087tt(a)) is amended—

13 (1) by inserting ‘‘as described in paragraph 

14 (1)’’ after ‘‘on the basis of adequate documenta15 tion’’; and 

16 (2) by inserting ‘‘on a case-by-case basis to’’ 

17 after ‘‘on a case-by-case basis to the cost of attend18 ance or’’. 

19 SEC. 9. PREVENTION OF EXCESSIVE DEBT. 

20 Section 479A(c) (20 U.S.C. 1087tt(c)) is amended—

21 (1) by inserting ‘‘or on a program, class-year, 

22 or institution-wide basis’’ after ‘‘On a case-by-case 

23 basis’’; and 

24 (2) by adding at the end the following new sen25 tences: ‘‘An institution may not refuse to certify, or 
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1 reduce the amount certified for, a loan under part 

2 B in order to require the student to borrow a loan 

3 under part D if the student has remaining loan eligi4 bility under part B. An institution that refuses or 

5 reduces a certification under this subsection may 

6 subsequently certify or increase the amount certified, 

7 subject to the remaining loan eligibility of the stu8 dent borrower.’’.

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