69–008 

110TH CONGRESS REPORT " ! HOUSE OF REPRESENTATIVES 2d Session 110–590 

PROVIDING FOR CONSIDERATION OF THE BILL (H.R. 5715) TO ENSURE 

CONTINUED AVAILABILITY OF ACCESS TO THE FEDERAL STUDENT 

LOAN PROGRAM FOR STUDENTS AND FAMILIES 

APRIL 15, 2008.—Referred to the House Calendar and ordered to be printed 

Ms. CASTOR, from the Committee on Rules, 

submitted the following 

R E P O R T 

[To accompany H. Res. 1107] 

The Committee on Rules, having had under consideration House 

Resolution 1107, by a record vote of 8–4, report the same to the 

House with the recommendation that the resolution be adopted. 

SUMMARY OF PROVISIONS OF THE RESOLUTION

The resolution provides for consideration of H.R. 5715, the Ensuring Continued Access to Student Loans Act of 2008, under a 

structured rule. The rule provides one hour of general debate 

equally divided and controlled by the chairman and ranking minority member of the Committee on Education and Labor. The rule 

waives all points of order against consideration of the bill except 

clauses 9 and 10 of rule XXI. The rule provides that the amendment printed in Part A of the Rules Committee report accompanying the resolution shall be considered as adopted and that the 

bill, as amended, shall be considered as read. The rule waives all 

points of order against provisions of the bill, as amended. (This 

waiver does not affect the point of order available under clause 9 

of rule XXI (regarding earmark disclosure). 

The rule provides that no further amendments to the bill, as 

amended, shall be in order except those amendments printed in 

Part B of this report. The further amendments made in order may 

be offered only in the order printed in this report, may be offered 

only by a Member designated in this report, shall be considered as 

read, shall be debatable for the time specified in this report equally 

divided and controlled by the proponent and an opponent, shall not 

be subject to amendment, and shall not be subject to a demand for 

division of the question in the House or in the Committee of the 

Whole. The rule waives all points of order against the further 

amendments printed in this report except for clauses 9 and 10 of 

rule XXI. The rule provides one motion to recommit with or withVerDate Aug 31 2005 02:03 Apr 16, 2008 Jkt 069008 PO 00000 Frm 00001 Fmt 6659 Sfmt 6602 E:\HR\OC\HR590.XXX HR590

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out instructions. The rule provides that, notwithstanding the operation of the previous question, the Chair may postpone further consideration of the bill to a time designated by the Speaker. 

EXPLANATION OF WAIVERS

The waiver of all points of order against consideration of the bill 

(except for clauses 9 and 10 of rule XXI) includes a waiver of clause 

4(a) of rule XIII requiring a three-day layover of the committee report, a waiver of clause 3(a)(1)(B) of rule XIII requiring a recital 

on the cover of the report that it contains supplemental, minority, 

or additional views, a waiver of clause 3(c)(2) of rule XIII requiring 

a Congressional Budget Office cost estimate in the committee report on any legislation containing new budget authority, new 

spending authority, new credit authority or a change in revenues, 

and a waiver of clause 3(d)(2) of rule XIII, requiring the inclusion 

of an estimate by the committee of the costs that would be incurred 

in carrying out the bill or joint resolution in the fiscal year in 

which it is reported and in each of the five fiscal years following 

that fiscal year. The waiver of all points of order against provisions 

in the bill includes a waiver of clause 4 of rule XXI prohibiting appropriations in legislative bills. 

COMMITTEE VOTES

The results of each record vote on an amendment or motion to 

report, together with the names of those voting for and against, are 

printed below: 

Rules Committee record vote No. 471 

Date: April 15, 2008. 

Measure: H.R. 5715. 

Motion by: Mr. Hastings (WA). 

Summary of motion: To make in order and provide appropriate 

waivers for an amendment by Rep. McKeon (CA), #11, which adds 

a Sense of Congress that the implementation of the PLUS loan auction should be delayed until July 1, 2010. 

Results: Defeated 4–8. 

Vote by Members: McGovern—Nay; Hastings (FL)—Nay; Matsui—Nay; Welch—Nay; Castor—Nay; Arcuri—Nay; Sutton—Nay; 

Dreier—Yea; Diaz-Balart—Yea; Hastings (WA)—Yea; Sessions—

Yea; Slaughter—Nay. 

Rules Committee record vote No. 472 

Date: April 15, 2008. 

Measure: H.R. 5715. 

Motion by: Mr. Sessions. 

Summary of motion: To make in order and provide appropriate 

waivers for an amendment by Rep. Franks (AZ), #1, which expresses a Sense of Congress regarding the passage of the College 

Cost Reduction Act. 

Results: Defeated 4–8. 

Vote by Members: McGovern—Nay; Hastings (FL)—Nay; Matsui—Nay; Welch—Nay; Castor—Nay; Arcuri—Nay; Sutton—Nay; 

Dreier—Yea; Diaz-Balart—Yea; Hastings (WA)—Yea; Sessions—

Yea; Slaughter—Nay. 


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Rules Committee record vote No. 473 

Date: April 15, 2008. 

Measure: H.R. 5715. 

Motion by: Mr. McGovern. 

Summary of motion: To report the rule. 

Results: Adopted 8–4. 

Vote by Members: McGovern—Yea; Hastings (FL)—Yea; Matsui—Yea; Welch—Yea; Castor—Yea; Arcuri—Yea; Sutton—Yea; 

Dreier—Nay; Diaz-Balart—Nay; Hastings (WA)—Nay; Sessions— Nay; Slaughter—Yea. 

SUMMARY OF AMENDMENT CONSIDERED AS ADOPTED

The amendment further clarifies the authority of the Secretary 

of Education to purchase loans, and ensures that loan purchases 

will result in no net cost to the federal government by including the 

Secretary of the Treasury and the Director of the Office of Management and Budget in the decision making process and thereby ensures compliance with the new PAYGO rules. 

SUMMARY OF AMENDMENTS MADE IN ORDER

(Summaries derived from information provided by sponsors.) 

1. Miller, George (CA): The Manager’s amendment makes technical and conforming changes; states that loan limit increases 

available under this Act are available only to students meeting the 

requirements of section 484(a) of the HEA; targets the loan limit 

increases to those students and families in most need; in regard to 

school-wide lender-of-last-resort eligibility, specifies that the Secretary of Education shall determine whether a school qualifies and 

provides criteria for the Secretary to consider in making the determination; specifies that funds received by lenders from loan sales 

be used to originate new loans; clarifies that the Secretary has the 

authority to enter into forward commitments to purchase new 

loans; and clarifies that, at the discretion of the Secretary, a loan 

purchased by the Secretary may continue to be serviced by the current lender. (10 minutes) 

2. Petri (WI): The amendment requires the Secretary of Education to review and revise as necessary the regulations concerning 

prohibited guaranty agency inducements to eligible lenders. (10 

minutes) 

3. Castle (DE)/Welch (VT): The amendment requires the General 

Accountability Office to conduct a study of the impact of raising 

loan limits on (1) tuition, fees, and room and board at institutions 

of higher education; and (2) private loan borrowing for attendance 

at institutions of higher education. (10 minutes) 

4. Castor (FL): The amendment temporarily classifies medical 

bill payment delinquencies of up to 180 days an extenuating circumstance which shall not interfere with parents’ ability to receive 

PLUS loans for their children’s tuition. (10 minutes) 

PART A—TEXT OF AMENDMENT TO BE CONSIDERED AS 

ADOPTED 

In section 459A of the Higher Education Act of 1965, as added 

by section 7 of the bill, strike subsection (a) and insert the following: 


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‘‘(a) AUTHORITY TO PURCHASE.— ‘‘(1) AUTHORITY; DETERMINATION REQUIRED.—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, or 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, 

the Secretary of the Treasury, and the Director of the Office 

of Management and Budget jointly determine are in the best 

interest of the United States, except that any purchase under 

this section shall not result in any net cost to the Federal Government, as determined jointly by the Secretary, the Secretary 

of the Treasury, and the Director of the Office of Management 

and Budget. ‘‘(2) REGULATIONS REQUIRED.—The Secretary, the Secretary 

of the Treasury, and the Director of the Office of Management 

and Budget shall jointly promulgate emergency regulations 

and publish such emergency regulations promptly in the Federal Register concerning the purchases authorized by paragraph (1). ‘‘(3) METHODOLOGY AND FACTORS; JUSTIFICATION REQUIRED.— Such regulations shall outline the methodology and factors 

that the Secretary, the Secretary of the Treasury, and the Director of the Office of Management and Budget shall consider 

in evaluating the price at which to purchase loans under sections 428, 428B, or 428H, and shall include a justification of 

how the use of such methodology and consideration of such factors used to determine purchase price will ensure that loan 

purchases do not result in any net cost to the Federal Government. 

PART B—TEXT OF AMENDMENTS MADE IN ORDER 

1. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE GEORGE

MILLER OF CALIFORNIA, OR HIS DESIGNEE, DEBATABLE FOR 10 

MINUTES

In section 2 of the bill— (1) redesignate subsection (b) as subsection (c); and 

(2) after subsection (a) insert the following new subsection: 

(b) STUDENT ELIGIBILITY.—Loan limit increases authorized by 

the amendments made by this section shall be available only to 

students who meet the requirements of section 484(a) of the Higher 

Education Act of 1965 (20 U.S.C. 1091(a)). 

In section 428H(d) of the Higher Education Act of 1965, as 

amended by section 2(a) of the bill— (1) in clause (i) of paragraph (2)(A), strike ‘‘$14,000’’ and insert ‘‘$12,000’’; and 

(2) in subclause (II) of paragraph (4)(A)(i), strike ‘‘clause (i)’’

and insert ‘‘subclause (I)’’. 

In section 3 of the bill—

(1) in subsection (a), insert ‘‘of the Higher Education Act of 

1965’’ after ‘‘428B(d)’’; and 


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(2) in subsection (b), insert ‘‘of such Act’’ after ‘‘428(b)(7)(C)’’. 

In section 4 of the bill, insert ‘‘of the Higher Education Act of 

1965 (20 U.S.C. 1078–2(a)(3))’’ after ‘‘428B(a)(3)’’. 

In section 428B(a)(3) of the Higher Education Act of 1965, as 

amended by section 4 of the bill, strike subparagraph (B) and insert the following: 

‘‘(B)(i) EXTENUATING CIRCUMSTANCES.—For loans made 

on or after July 1, 2008, and before July 1, 2009, a lender 

may determine that extenuating circumstances exist under 

the regulations promulgated pursuant to paragraph (1)(A) 

if an applicant for a loan under this section is delinquent 

for 180 days or less on their home mortgage payments and 

is not more than 89 days delinquent on the repayment of 

any other debt. 

‘‘(ii) MASTER CALENDAR INAPPLICABLE.—Section 482 shall 

not apply to determinations made under clause (i).’’. 

In section 5(a) of the bill—

(1) in paragraph (1), strike ‘‘students and parents’’ and insert 

‘‘eligible students and parents’’; 

(2) in paragraph (3)(A), strike the comma after ‘‘paragraph 

(4)’’; and 

(3) in paragraph (4), strike paragraph (4) of section 428(j) of 

the Higher Education Act of 1965 added by such paragraph of 

the bill and insert 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 Secretary shall designate such institution for participation in the lender-of-last-resort program under this paragraph. If the Secretary designates 

an institution under this paragraph, the guaranty agency designated for the State in which the institution is located 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). 

‘‘(5) STANDARDS DEVELOPED BY THE SECRETARY.—In developing standards with respect to paragraph (4), the Secretary 

may require—

‘‘(A) an institution of higher education to demonstrate 

that, despite due diligence on the part of the institution, 

the institution has been unable to secure the commitment 

of lenders willing to make loans to a significant number of 

students attending the institution; 

‘‘(B) that, prior to making a request under such paragraph for designation for participation in the lender-oflast-resort program, an institution of higher education 

shall demonstrate that the institution has met a minimum 

threshold, as determined by the Secretary, for the number 

or percentage of students at such institution who have received rejections from eligible lenders for loans under this 

part; and 

‘‘(C) any other standards and guidelines the Secretary 

determines to be appropriate.’’. 


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In section 459A of the Higher Education Act of 1965, as added 

by section 7 of the bill—

(1) in subsection (a)(1), insert ‘‘, or enter into forward commitments to purchase,’’ after ‘‘is authorized to purchase’’; 

(2) in subsection (b)—

(A) strike ‘‘shall be used’’ and all that follows through 

the period and insert the following: ‘‘shall be used (1) to 

ensure continued participation of such lender in the Federal student loan programs authorized under part B of this 

title, and (2) to originate new Federal loans to students, as 

authorized under part B of this title.’’; 

(3) redesignate subsection (c) as subsection (d); and 

(4) after subsection (b), insert the following new subsection: 

‘‘(c) MAINTAINING SERVICING ARRANGEMENTS.—The Secretary 

may, if agreed upon by an eligible lender selling loans under this 

section, contract with such lender for the servicing of the loans purchased, provided that—

‘‘(1) the cost of such servicing arrangement does not exceed 

the cost the Federal Government would otherwise incur for the 

servicing of loans purchased, as determined under subsection 

(a); and 

‘‘(2) such servicing arrangement is in the best interest of the 

borrowers whose loans are purchased. 

2. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE PETRI OF

WISCONSIN, OR HIS DESIGNEE, DEBATABLE FOR 10 MINUTES

At the end of section 5 of the bill, add the following new subsection: 

(c) REVIEW OF INDUCEMENTS LIMITATIONS.—Within 90 days after 

the date of enactment of this Act, the Secretary of Education shall 

review, and as necessary revise, the Department of Education’s regulations concerning prohibited guaranty agency inducements to eligible lenders (34 CFR 682.401(a)) to ensure that such agency’s do 

not engage in improper inducements in the expansion of operations 

of the lender-of-last-resort program as authorized by the amendments made by this section. The Secretary shall submit a report on 

the review and revision required by this subsection to the Committee on Education and Labor of the House of Representatives 

and the Committee on Health, Education, Labor, and Pensions of 

the Senate within 180 days after such date of enactment. 

3. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE CASTLE OF

DELAWARE, OR HIS DESIGNEE, DEBATABLE FOR 10 MINUTES

At the end of the bill, add the following new section: 

SEC. 9. GAO STUDY ON IMPACT OF INCREASED LOAN LIMITS. 

(a) STUDY REQUIRED.—The Comptroller General shall conduct a 

study to evaluate the impact of the increase in Federal loan limits 

provided for in section 2 of this Act and section 8005 of the Deficit 

Reduction Act of 2005 with respect to the impact on—

(1) tuition, fees, and room and board at institutions of higher 

education; and 


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(2) private loan borrowing by students and parents for attendance at institutions of higher education. 

(b) STUDY COMPONENTS.—The study required under subsection 

(a) shall be conducted for each major sector of institutions of higher 

education over a 5-year time period. The report shall specifically 

analyze the following: 

(1) Whether, on average, tuition, fees, and room and board 

increase, decrease, or remain unchanged in each such sector 

after the increases in Federal loan limits take effect. 

(2) Whether the amount of private educational loans taken 

out by students (and their parents) at institutions in each such 

sector to pay tuition, fees, and room and board increase, decrease, or remain unchanged. 

(c) REPORT.—Not later than one year after the date of enactment 

of this Act, the Comptroller General shall provide an interim report 

to the Committee on Education and Labor of the House of Representatives and the Committee on Health, Education, Labor, and 

Pensions of the Senate including the initial results of the study 

conducted under this section. The Comptroller General shall follow 

up with such Committees after the third year and the fifth year 

after such date of enactment. 

4. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE CASTOR OF

FLORIDA, OR HER DESIGNEE, DEBATABLE FOR 10 MINUTES

In section 428B(a)(3)(B) of the Higher Education Act of 1965, as 

amended by section 4 of the bill, insert ‘‘or on medical bill payments’’ after ‘‘home mortgage payments’’. 

Æ 


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