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[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 134 Introduced in House (IH)]

109th CONGRESS
  1st Session
                                H. R. 134

 To prevent abuse of the special allowance subsidies under the Federal 
                     Family Education Loan Program.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                            January 4, 2005

   Mr. Kildee (for himself, Mr. Van Hollen, and Mr. George Miller of 
 California) introduced the following bill; which was referred to the 
                Committee on Education and the Workforce

_______________________________________________________________________

                                 A BILL

 
 To prevent abuse of the special allowance subsidies under the Federal 
                     Family Education Loan Program.

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

SECTION 1. SHORT TITLE.

     This Act may be cited as the ``Emergency Loan Abuse Prevention Act 
of 2005''.

SEC. 2. TERMINATION OF EXCESSIVE ALLOWANCES.

     Section 438(b)(2)(B) of the Higher Education Act of 1965 (20 
U.S.C. 1087-1(b)(2)(B)) is amended by striking clause (v) and inserting 
the following:
                            ``(v) This subparagraph shall not apply 
                        to--
                                    ``(I) any loan made or purchased 
                                after the date of enactment of the 
                                Emergency Loan Abuse Prevention Act of 
                                2004;
                                    ``(II) any loan that had not 
                                qualified before such date of enactment 
                                for receipt of a special allowance 
                                payment determined under this 
                                subparagraph; or
                                    ``(III) any loan made or purchased 
                                before such date of enactment with 
                                funds described in the first or second 
                                sentence of clause (i) if--
                                            ``(aa) the obligation 
                                        described in the first such 
                                        sentence has, after such date 
                                        of enactment, matured, or been 
                                        retired or defeased; or
                                            ``(bb) the maturity date or 
                                        the date of retirement of the 
                                        obligation described in the 
                                        first such sentence has, after 
                                        such date of enactment, been 
                                        extended.''.

SEC. 3. EXPENDITURE OF SAVINGS ON INCREASED PELL GRANTS.

    From any amounts in the Treasury not otherwise appropriated, there 
is appropriated for each of the fiscal years beginning after the date 
of enactment of this Act an additional amount for the purposes of 
increasing the maximum Pell grant in each Act providing annual 
appropriations for the Pell grant program under subpart 1 of part A of 
title IV of the Higher Education Act of 1965 (20 U.S.C. 1070a) that is 
equal to the amount that is determined annually by the Congressional 
Budget Office to be the amount by which expenditures under section 438 
of such Act (20 U.S.C. 1087-1) are reduced for such fiscal year by the 
enactment of section 2 of this Act.
                                 <all>
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