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[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5715 Introduced in House (IH)]

110th CONGRESS
  2d Session
                                H. R. 5715

To ensure continued availability of access to the Federal student loan 
                   program for students and families.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             April 8, 2008

Mr. George Miller of California (for himself, Mr. McKeon, Mr. Hinojosa, 
  Mr. Altmire, Ms. Shea-Porter, Mr. Hare, Mr. Holt, Mr. Courtney, Mr. 
Grijalva, Mr. Sarbanes, Mr. Scott of Virginia, Ms. Woolsey, Mr. Bishop 
    of New York, Ms. Hirono, Mr. Loebsack, Mr. Wu, and Mr. Sestak) 
 introduced the following bill; which was referred to the Committee on 
                          Education and Labor

_______________________________________________________________________

                                 A BILL

 
To ensure continued availability of access to the Federal student loan 
                   program for students and families.

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

SECTION 1. SHORT TITLE.

    This title may be cited as the ``Ensuring Continued Access to 
Student Loans Act of 2008''.

SEC. 2. INCREASING UNSUBSIDIZED STAFFORD LOAN LIMITS FOR UNDERGRADUATE 
              AND GRADUATE STUDENTS.

    (a) Amendments.--Subsection (d) of section 428H of the Higher 
Education Act of 1965 (20 U.S.C. 1078-8(d)) is amended to read as 
follows:
    ``(d) Loan Limits.--
            ``(1) In general.--Except as provided in paragraphs (2), 
        (3), and (4), the annual and aggregate limits for loans under 
        this section shall be the same as those established under 
        section 428(b)(1), less any amount received by such student 
        pursuant to the subsidized loan program established under 
        section 428.
            ``(2) Limits for graduate and professional students.--
                    ``(A) Annual limits.--The maximum annual amount of 
                loans under this section a graduate or professional 
                student may borrow in any academic year (as defined in 
                section 481(a)(2)) or its equivalent shall be the 
                amount determined under paragraph (1), plus--
                            ``(i) in the case of such a student who is 
                        a graduate or professional student attending an 
                        eligible institution, $14,000; and
                            ``(ii) in the case of a graduate student 
                        enrolled in coursework specified in sections 
                        484(b)(3)(B) and 484(b)(4)(B), $7,000;
                except in cases where the Secretary determines, that a 
                higher amount is warranted in order to carry out the 
                purpose of this part with respect to students engaged 
                in specialized training requiring exceptionally high 
                costs of education, but the annual insurable limit per 
                student shall not be deemed to be exceeded by a line of 
                credit under which actual payments by the lender to the 
                borrower will not be made in any years in excess of the 
                annual limit.
                    ``(B) Aggregate limit.--The maximum aggregate 
                amount of loans under this section a student described 
                in subparagraph (A) may borrow shall be the amount 
                described in paragraph (1), adjusted to reflect the 
                increased annual limits described in subparagraph (A), 
                as prescribed by the Secretary by regulation.
            ``(3) Limits for undergraduate dependent students.--
                    ``(A) Annual limits.--The maximum annual amount of 
                loans under this section an undergraduate dependent 
                student (except an undergraduate dependent student 
                whose parents are unable to borrow under section 428B 
                or the Federal Direct PLUS Loan Program) may borrow in 
                any academic year (as defined in section 481(a)(2)) or 
                its equivalent shall be the sum of the amount 
                determined under paragraph (1), plus $2,000.
                    ``(B) Aggregate limits.--The maximum aggregate 
                amount of loans under this section a student described 
                in subparagraph (A) may borrow shall be $31,000.
            ``(4) Limits for undergraduate independent students.--
                    ``(A) Annual limits.--The maximum annual amount of 
                loans under this section an undergraduate independent 
                student, or an undergraduate dependent student whose 
                parents are unable to borrow under section 428B or the 
                Federal Direct PLUS Loan Program, may borrow in any 
                academic year (as defined in section 481(a)(2)) or its 
                equivalent shall be the sum of the amount determined 
                under paragraph (1), plus--
                            ``(i) in the case of such a student 
                        attending an eligible institution who has not 
                        completed such student's first 2 years of 
                        undergraduate study--
                                    ``(I) $6,000, if such student is 
                                enrolled in a program whose length is 
                                at least one academic year in length; 
                                or
                                    ``(II) if such student is enrolled 
                                in a program of undergraduate education 
                                which is less than one academic year, 
                                the maximum annual loan amount that 
                                such student may receive may not exceed 
                                the amount that bears the same ratio to 
                                the amount specified in clause (i) as 
                                the length of such program measured in 
                                semester, trimester, quarter, or clock 
                                hours bears to one academic year;
                            ``(ii) in the case of such a student at an 
                        eligible institution who has successfully 
                        completed such first and second years but has 
                        not successfully completed the remainder of a 
                        program of undergraduate education--
                                    ``(I) $7,000; or
                                    ``(II) if such student is enrolled 
                                in a program of undergraduate 
                                education, the remainder of which is 
                                less than one academic year, the 
                                maximum annual loan amount that such 
                                student may receive may not exceed the 
                                amount that bears the same ratio to the 
                                amount specified in subclause (I) as 
                                such remainder measured in semester, 
                                trimester, quarter, or clock hours 
                                bears to one academic year; and
                            ``(iii) in the case of such a student 
                        enrolled in coursework specified in sections 
                        484(b)(3)(B) and 484(b)(4)(B), $6,000 for 
                        coursework necessary for enrollment in an 
                        undergraduate degree or certificate program.
                    ``(B) Aggregate limits.--The maximum aggregate 
                amount of loans under this section a student described 
                in subparagraph (A) may borrow shall be $57,500.
            ``(5) Capitalized interest.--Interest capitalized shall not 
        be deemed to exceed a maximum aggregate amount determined under 
        subparagraph (B) of paragraph (2), (3), or (4).''.
    (b) Effective Date.--The amendments made by this section shall be 
effective for loans issued on or after July 1, 2008.

SEC. 3. GRACE PERIOD FOR PARENT PLUS LOANS.

    (a) Amendment.--Section 428B(d) (20 U.S.C. 1078-2(d)) is amended by 
amending paragraphs (1) and (2) to read as follows:
            ``(1) Commencement of repayment.--Repayment of principal on 
        loans made under this section shall--
                    ``(A) commence not later than--
                            ``(i) 60 days after the date such loan is 
                        disbursed by the lender, except as provided in 
                        clause (ii); and
                            ``(ii) if agreed upon by a parent borrower, 
                        the day after 6 months after the date the 
                        student for whom the loan is borrowed ceases to 
                        carry at least one-half the normal full-time 
                        academic workload (as determined by the 
                        institution); and
                    ``(B) be subject to deferral during any period 
                during which the graduate or professional student or 
                the parent meets the conditions required for a deferral 
                under section 427(a)(2)(C) or 428(b)(1)(M).
            ``(2) Capitalization of interest.--
                    ``(A) In general.--Interest on loans made under 
                this section--
                            ``(i) which accrues prior to the beginning 
                        of repayment under paragraph (1)(A)(i), shall 
                        be added to the principal amount of the loan; 
                        and
                            ``(ii) which accrues prior to the beginning 
                        of repayment under paragraph (1)(A)(ii) or 
                        during a period in which payments of principal 
                        are deferred pursuant to paragraph (1)(B) 
                        shall, if agreed upon by the borrower and the 
                        lender--
                                    ``(I) be paid monthly or quarterly; 
                                or
                                    ``(II) be added to the principal 
                                amount of the loan not more frequently 
                                than quarterly by the lender.
                    ``(B) Insurable limits.--Capitalization of interest 
                under this paragraph shall not be deemed to exceed the 
                annual insurable limit on account of the borrower.''.
    (b) Conforming Amendment.--Section 428(b)(7)(C) (20 U.S.C. 
1078(b)(7)(C)) is amended by striking ``, 428B,''.
    (c) Effective Date.--The amendments made by this section shall be 
effective for loans issued on or after July 1, 2008.

SEC. 4. SPECIAL RULES FOR PLUS LOANS.

    Section 428B(a)(3) is amended to read as follows:
            ``(3) Special rules.--
                    ``(A) Parent borrowers.--Whenever necessary to 
                carry out the provisions of this section, the terms 
                `student' and `borrower' as used in this part shall 
                include a parent borrower under this section.
                    ``(B) Extenuating circumstances.--For loans made on 
                or after July 1, 2008, and before July 1, 2009, a 
                lender may determine that a borrower meets the 
                extenuating circumstances requirement described in 
                regulations promulgated by the Secretary to carry out 
                this section or section 455 if the borrower is 180 or 
                fewer days delinquent on their home mortgage 
                payments.''.

SEC. 5. LENDER-OF-LAST-RESORT.

    (a) In General.--Section 428(j) of the Higher Education Act of 1965 
(20 U.S.C. 1078(j)) is amended--
            (1) in the first sentence of paragraph (1), by striking 
        ``students eligible to receive interest benefits paid on their 
        behalf under subsection (a) of this section who are otherwise 
        unable to obtain loans under this part'' and inserting 
        ``students and parents who are otherwise unable to obtain loans 
        under this part (except for consolidation loans under section 
        428C) or who attend an institution of higher education in the 
        State that is designated under paragraph (4)'';
            (2) in paragraph (2)(B), by inserting ``, in the case of 
        students and parents applying for loans under this subsection 
        because of an inability to otherwise obtain loans under this 
        part (except for consolidation loans under section 428C),'' 
        after ``lender, nor'';
            (3) in paragraph (3)(C)--
                    (A) in the first sentence, by inserting ``or 
                designates an institution of higher education for 
                participation in the program under this subsection 
                under paragraph (4),'' after ``under this part''; and
                    (B) in the third sentence, by inserting ``or to 
                eligible borrowers who attend an institution in the 
                State that is designated under paragraph (4)'' after 
                ``problems''; and
            (4) by adding at the end 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 guaranty agency 
        designated for a State shall designate such institution for 
        participation in the lender-of-last-resort program under this 
        paragraph. If the guaranty agency designates an institution 
        under this paragraph, such agency 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).''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
take effect on the date of enactment of this Act.

SEC. 6. MANDATORY ADVANCES.

    (a) In General.--Section 421(b) of the Higher Education Act of 1965 
(20 U.S.C. 1071(b)) is amended--
            (1) in paragraph (4), by striking ``programs, and'' and 
        inserting ``programs,'';
            (2) in paragraph (5), by striking ``agencies.'' and 
        inserting ``agencies, and''; and
            (3) by adding at the end the following:
            ``(6) there is authorized to be appropriated, and there are 
        appropriated, out of any money in the Treasury not otherwise 
        appropriated, such sums as may be necessary for the purpose of 
        carrying out section 422(c)(7).''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
take effect on the date of enactment of this Act.

SEC. 7. TEMPORARY AUTHORITY TO PURCHASE STUDENT LOANS.

    (a) Spending Authority.--
            (1) Authority granted.--The first sentence of section 
        451(a) of the Higher Education Act of 1965 (20 U.S.C. 1087a(a)) 
        is amended--
                    (A) by inserting ``(1)'' after ``as may be 
                necessary''; and
                    (B) by inserting before the period at the end of 
                such sentence the following: ``; and (2) for purchasing 
                loans under section 459A''.
            (2) Conforming amendment.--Section 451(a) of such Act (20 
        U.S.C. 1087a(a)) is further amended by striking ``Such loans 
        shall'' and inserting ``Loans made under this part shall''.
    (b) Temporary Authority.--Part D of title IV of the Higher 
Education Act of 1965 (20 U.S.C. 1087a et seq.) is amended by inserting 
after section 459 the following new section:

``SEC. 459A. TEMPORARY AUTHORITY TO PURCHASE STUDENT LOANS.

    ``(a) Authority To Purchase.--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, and 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 determines (after 
consultation with the Secretary of the Treasury) are in the best 
interest of the United States, except that any loan purchase under this 
section shall not result in any cost to the Federal Government. The 
Secretary shall promptly publish any determination under this 
subsection in the Federal Register.
    ``(b) Proceeds.--The Secretary shall require, as a condition of any 
purchase under subsection (a), that the funds paid by the Secretary to 
any eligible lender under this section shall be used in a manner 
consistent with ensuring continued participation of such lender in the 
Federal student loan programs authorized under part B of this title.
    ``(c) Expiration of Authority.--The Secretary's authority to 
purchase loans under this section shall expire on July 1, 2009.''.
    (c) Contracting Authority.--Section 456(b) of the Higher Education 
Act of 1965 (20 U.S.C. 1087f(b)) is amended by inserting ``or 
purchased'' after ``loans made'' each place it appears in paragraphs 
(2) and (3).

SEC. 8. SENSE OF CONGRESS.

    It is a sense of Congress that, at a time when our economy is 
fragile and higher education and retraining opportunities are more 
important than ever--
            (1) the Federal financial institutions, such as the Federal 
        Financing Bank and Federal Reserve, and federally chartered 
        private entities such as the Federal Home Loan Banks and 
        others, should consider, in consultation with the Secretary of 
        Treasury and the Secretary of Education, using available 
        authorities in a timely manner, if needed, to assist in 
        ensuring that students and families can access Federal student 
        loans for academic year 2008-2009, and if needed in the 
        subsequent academic year, in a manner that results in no 
        increased costs to taxpayers; and
            (2) any action taken as a result of such consideration 
        should in no way limit or delay the Secretary of Education's 
        authority to operate the lender-of-last-resort provisions of 
        section 428(j) of the Higher Education Act of 1965 (as amended 
        by this Act), nor the authority to purchase Federal Family 
        Education Loan Program loans, as authorized by section 459A of 
        such Act (as added by this Act).
                                 <all>
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