I 

113TH CONGRESS 

1ST SESSION H. R. 3371 

To exempt certain education loans made by States from certain preferred 

lender requirements under the Higher Education Act of 1965. 

IN THE HOUSE OF REPRESENTATIVES 

OCTOBER 29, 2013 

Mr. HINOJOSA (for himself and Mr. CASTRO of Texas) introduced the following bill; which was referred to the Committee on Education and the 

Workforce 

A BILL 

To exempt certain education loans made by States from 

certain preferred lender requirements under the Higher 

Education Act of 1965. 

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 ‘‘State Loan Access and 

5 Student Protection Act’’. 

6 SEC. 2. EXCEPTION FOR CERTAIN EDUCATION LOANS 

7 MADE BY STATES. 

8 Section 487(h) of the Higher Education Act of 1965 

9 (20 U.S.C. 1094(h)) is amended— 


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1 (1) in paragraph (1)(B)— 

2 (A) in clause (i), by striking ‘‘and’’ at the 

3 end; 

4 (B) by inserting ‘‘and’’ at the end of clause 

5 (ii); and 

6 (C) by inserting after clause (ii), the fol7 lowing: 

8 ‘‘(iii) in the case of education loans 

9 made by a State (and whose terms and 

10 conditions are established by the State), 

11 which are recommended, promoted, or en12 dorsed by the institution, and that do not 

13 meet the requirement of clause (i) with re14 spect to having not less than two lenders 

15 of such loans who are not affiliates of each 

16 other included on the preferred lender 

17 list— 

18 ‘‘(I) the institution’s only actions 

19 to recommend, promote, or endorse 

20 such loans are— 

21 ‘‘(aa) informing students 

22 and the families of such students 

23 about such loans; and 

24 ‘‘(bb) providing financial aid 

25 packages that include such loans 


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1 to students who have previously 

2 been awarded such loans; 

3 ‘‘(II) the terms and conditions of 

4 such loans (including interest rates, 

5 fees, available repayment and forgive6 ness options, and such other informa7 tion as the Secretary determines nec8 essary) are— 

9 ‘‘(aa) using the form devel10 oped by the Secretary under 

11 paragraph (3), disclosed to the 

12 borrower and compared to the 

13 terms and conditions of a loan 

14 made under part D; and 

15 ‘‘(bb) at least as favorable to 

16 borrowers as the terms and con17 ditions of a loan under made 

18 under part D, as determined in 

19 accordance with such criteria as 

20 may be established by the Sec21 retary; and 

22 ‘‘(III) the institution prominently 

23 discloses to borrowers the methods 

24 and criteria used by the institution to 

25 select such loans for the recommendaVerDate Mar 15 2010 04:56 Nov 01, 2013 Jkt 039200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H3371.IH H3371

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1 tion, promotion, or endorsement de2 scribed in clause (I).’’; and 

3 (2) by adding at the end the following: 

4 ‘‘(3) COMPARISON FORM.—Not later than 6 

5 months after the date of the enactment of the State 

6 Loan Access and Student Protection Act, the Sec7 retary shall develop a form for the purposes of the 

8 disclosure and comparison required under paragraph 

9 (1)(B)(iii)(II)(aa). 

10 ‘‘(4) RULE OF CONSTRUCTION.—Nothing in 

11 this subsection shall be construed to require an insti12 tution to carry out the actions described in items 

13 (aa) and (bb) of paragraph (1)(B)(iii)(I).’’. 

14 SEC. 3. INAPPLICABILITY OF TITLE IV NEGOTIATED RULE15 MAKING REQUIREMENT AND MASTER CAL16 ENDAR EXCEPTION. 

17 Sections 482(c) and 492 of the Higher Education Act 

18 of 1965 (20 U.S.C. 1089(c), 1098a) shall not apply to 

19 the amendments made by section 2, or to any regulations 

20 promulgated under those amendments. 

21 SEC. 4. EFFECTIVE DATE. 

22 The amendments made by section 2(1) shall be effec23 tive with respect to academic year 2014–2015 and each 

24 succeeding academic year. 

Æ 


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