I 

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. 

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 title may be cited as the ‘‘Ensuring Continued 

5 Access to Student Loans Act of 2008’’. 


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1 SEC. 2. INCREASING UNSUBSIDIZED STAFFORD LOAN LIM2 ITS FOR UNDERGRADUATE AND GRADUATE 

3 STUDENTS. 

4 (a) AMENDMENTS.—Subsection (d) of section 428H 

5 of the Higher Education Act of 1965 (20 U.S.C. 1078– 

6 8(d)) is amended to read as follows: 

7 ‘‘(d) LOAN LIMITS.— 

8 ‘‘(1) IN GENERAL.—Except as provided in para9 graphs (2), (3), and (4), the annual and aggregate 

10 limits for loans under this section shall be the same 

11 as those established under section 428(b)(1), less 

12 any amount received by such student pursuant to 

13 the subsidized loan program established under sec14 tion 428. 

15 ‘‘(2) LIMITS FOR GRADUATE AND PROFES16 SIONAL STUDENTS.— 

17 ‘‘(A) ANNUAL LIMITS.—The maximum an18 nual amount of loans under this section a grad19 uate or professional student may borrow in any 

20 academic year (as defined in section 481(a)(2)) 

21 or its equivalent shall be the amount deter22 mined under paragraph (1), plus— 

23 ‘‘(i) in the case of such a student who 

24 is a graduate or professional student at25 tending an eligible institution, $14,000; 

26 and 


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1 ‘‘(ii) in the case of a graduate student 

2 enrolled in coursework specified in sections 

3 484(b)(3)(B) and 484(b)(4)(B), $7,000; 

4 except in cases where the Secretary determines, 

5 that a higher amount is warranted in order to 

6 carry out the purpose of this part with respect 

7 to students engaged in specialized training re8 quiring exceptionally high costs of education, 

9 but the annual insurable limit per student shall 

10 not be deemed to be exceeded by a line of credit 

11 under which actual payments by the lender to 

12 the borrower will not be made in any years in 

13 excess of the annual limit. 

14 ‘‘(B) AGGREGATE LIMIT.—The maximum 

15 aggregate amount of loans under this section a 

16 student described in subparagraph (A) may 

17 borrow shall be the amount described in para18 graph (1), adjusted to reflect the increased an19 nual limits described in subparagraph (A), as 

20 prescribed by the Secretary by regulation. 

21 ‘‘(3) LIMITS FOR UNDERGRADUATE DEPEND22 ENT STUDENTS.— 

23 ‘‘(A) ANNUAL LIMITS.—The maximum an24 nual amount of loans under this section an un25 dergraduate dependent student (except an unVerDate Aug 31 2005 22:48 Apr 09, 2008 Jkt 069200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H5715.IH H5715

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1 dergraduate dependent student whose parents 

2 are unable to borrow under section 428B or the 

3 Federal Direct PLUS Loan Program) may bor4 row in any academic year (as defined in section 

5 481(a)(2)) or its equivalent shall be the sum of 

6 the amount determined under paragraph (1), 

7 plus $2,000. 

8 ‘‘(B) AGGREGATE LIMITS.—The maximum 

9 aggregate amount of loans under this section a 

10 student described in subparagraph (A) may 

11 borrow shall be $31,000. 

12 ‘‘(4) LIMITS FOR UNDERGRADUATE INDE13 PENDENT STUDENTS.— 

14 ‘‘(A) ANNUAL LIMITS.—The maximum an15 nual amount of loans under this section an un16 dergraduate independent student, or an under17 graduate dependent student whose parents are 

18 unable to borrow under section 428B or the 

19 Federal Direct PLUS Loan Program, may bor20 row in any academic year (as defined in section 

21 481(a)(2)) or its equivalent shall be the sum of 

22 the amount determined under paragraph (1), 

23 plus— 

24 ‘‘(i) in the case of such a student at25 tending an eligible institution who has not 


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1 completed such student’s first 2 years of 

2 undergraduate study— 

3 ‘‘(I) $6,000, if such student is 

4 enrolled in a program whose length is 

5 at least one academic year in length; 

6 or 

7 ‘‘(II) if such student is enrolled 

8 in a program of undergraduate edu9 cation which is less than one academic 

10 year, the maximum annual loan 

11 amount that such student may receive 

12 may not exceed the amount that bears 

13 the same ratio to the amount specified 

14 in clause (i) as the length of such pro15 gram measured in semester, trimester, 

16 quarter, or clock hours bears to one 

17 academic year; 

18 ‘‘(ii) in the case of such a student at 

19 an eligible institution who has successfully 

20 completed such first and second years but 

21 has not successfully completed the remain22 der of a program of undergraduate edu23 cation— 

24 ‘‘(I) $7,000; or 


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1 ‘‘(II) if such student is enrolled 

2 in a program of undergraduate edu3 cation, the remainder of which is less 

4 than one academic year, the maximum 

5 annual loan amount that such student 

6 may receive may not exceed the 

7 amount that bears the same ratio to 

8 the amount specified in subclause (I) 

9 as such remainder measured in semes10 ter, trimester, quarter, or clock hours 

11 bears to one academic year; and 

12 ‘‘(iii) in the case of such a student en13 rolled in coursework specified in sections 

14 484(b)(3)(B) and 484(b)(4)(B), $6,000 for 

15 coursework necessary for enrollment in an 

16 undergraduate degree or certificate pro17 gram. 

18 ‘‘(B) AGGREGATE LIMITS.—The maximum 

19 aggregate amount of loans under this section a 

20 student described in subparagraph (A) may 

21 borrow shall be $57,500. 

22 ‘‘(5) CAPITALIZED INTEREST.—Interest capital23 ized shall not be deemed to exceed a maximum ag24 gregate amount determined under subparagraph (B) 

25 of paragraph (2), (3), or (4).’’. 


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1 (b) EFFECTIVE DATE.—The amendments made by 

2 this section shall be effective for loans issued on or after 

3 July 1, 2008. 

4 SEC. 3. GRACE PERIOD FOR PARENT PLUS LOANS. 

5 (a) AMENDMENT.—Section 428B(d) (20 U.S.C. 

6 1078–2(d)) is amended by amending paragraphs (1) and 

7 (2) to read as follows: 

8 ‘‘(1) COMMENCEMENT OF REPAYMENT.—Re9 payment of principal on loans made under this sec10 tion shall— 

11 ‘‘(A) commence not later than— 

12 ‘‘(i) 60 days after the date such loan 

13 is disbursed by the lender, except as pro14 vided in clause (ii); and 

15 ‘‘(ii) if agreed upon by a parent bor16 rower, the day after 6 months after the 

17 date the student for whom the loan is bor18 rowed ceases to carry at least one-half the 

19 normal full-time academic workload (as de20 termined by the institution); and 

21 ‘‘(B) be subject to deferral during any pe22 riod during which the graduate or professional 

23 student or the parent meets the conditions re24 quired for a deferral under section 427(a)(2)(C) 

25 or 428(b)(1)(M). 


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1 ‘‘(2) CAPITALIZATION OF INTEREST.— 

2 ‘‘(A) IN GENERAL.—Interest on loans 

3 made under this section— 

4 ‘‘(i) which accrues prior to the begin5 ning of repayment under paragraph 

6 (1)(A)(i), shall be added to the principal 

7 amount of the loan; and 

8 ‘‘(ii) which accrues prior to the begin9 ning of repayment under paragraph 

10 (1)(A)(ii) or during a period in which pay11 ments of principal are deferred pursuant to 

12 paragraph (1)(B) shall, if agreed upon by 

13 the borrower and the lender— 

14 ‘‘(I) be paid monthly or quar15 terly; or 

16 ‘‘(II) be added to the principal 

17 amount of the loan not more fre18 quently than quarterly by the lender. 

19 ‘‘(B) INSURABLE LIMITS.—Capitalization 

20 of interest under this paragraph shall not be 

21 deemed to exceed the annual insurable limit on 

22 account of the borrower.’’. 

23 (b) CONFORMING AMENDMENT.—Section 

24 428(b)(7)(C) (20 U.S.C. 1078(b)(7)(C)) is amended by 

25 striking ‘‘, 428B,’’. 


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

2 this section shall be effective for loans issued on or after 

3 July 1, 2008. 

4 SEC. 4. SPECIAL RULES FOR PLUS LOANS. 

5 Section 428B(a)(3) is amended to read as follows: 

6 ‘‘(3) SPECIAL RULES.— 

7 ‘‘(A) PARENT BORROWERS.—Whenever 

8 necessary to carry out the provisions of this 

9 section, the terms ‘student’ and ‘borrower’ as 

10 used in this part shall include a parent bor11 rower under this section. 

12 ‘‘(B) EXTENUATING CIRCUMSTANCES.— 

13 For loans made on or after July 1, 2008, and 

14 before July 1, 2009, a lender may determine 

15 that a borrower meets the extenuating cir16 cumstances requirement described in regula17 tions promulgated by the Secretary to carry out 

18 this section or section 455 if the borrower is 

19 180 or fewer days delinquent on their home 

20 mortgage payments.’’. 

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

22 (a) IN GENERAL.—Section 428(j) of the Higher Edu23 cation Act of 1965 (20 U.S.C. 1078(j)) is amended— 

24 (1) in the first sentence of paragraph (1), by 

25 striking ‘‘students eligible to receive interest benefits 


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1 paid on their behalf under subsection (a) of this sec2 tion who are otherwise unable to obtain loans under 

3 this part’’ and inserting ‘‘students and parents who 

4 are otherwise unable to obtain loans under this part 

5 (except for consolidation loans under section 428C) 

6 or who attend an institution of higher education in 

7 the State that is designated under paragraph (4)’’; 

8 (2) in paragraph (2)(B), by inserting ‘‘, in the 

9 case of students and parents applying for loans 

10 under this subsection because of an inability to oth11 erwise obtain loans under this part (except for con12 solidation loans under section 428C),’’ after ‘‘lender, 

13 nor’’; 

14 (3) in paragraph (3)(C)— 

15 (A) in the first sentence, by inserting ‘‘or 

16 designates an institution of higher education for 

17 participation in the program under this sub18 section under paragraph (4),’’ after ‘‘under this 

19 part’’; and 

20 (B) in the third sentence, by inserting ‘‘or 

21 to eligible borrowers who attend an institution 

22 in the State that is designated under paragraph 

23 (4)’’ after ‘‘problems’’; and 

24 (4) by adding at the end the following: 


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1 ‘‘(4) INSTITUTION-WIDE STUDENT QUALIFICA2 TION.—Upon the request of an institution of higher 

3 education and pursuant to standards developed by 

4 the Secretary, the guaranty agency designated for a 

5 State shall designate such institution for participa6 tion in the lender-of-last-resort program under this 

7 paragraph. If the guaranty agency designates an in8 stitution under this paragraph, such agency shall 

9 make loans, in the same manner as such loans are 

10 made under paragraph (1), to students and parent 

11 borrowers of the designated institution, regardless of 

12 whether the students or parent borrowers are other13 wise unable to obtain loans under this part (other 

14 than a consolidation loan under section 428C).’’. 

15 (b) EFFECTIVE DATE.—The amendments made by 

16 subsection (a) shall take effect on the date of enactment 

17 of this Act. 

18 SEC. 6. MANDATORY ADVANCES. 

19 (a) IN GENERAL.—Section 421(b) of the Higher 

20 Education Act of 1965 (20 U.S.C. 1071(b)) is amended— 

21 (1) in paragraph (4), by striking ‘‘programs, 

22 and’’ and inserting ‘‘programs,’’; 

23 (2) in paragraph (5), by striking ‘‘agencies.’’ 

24 and inserting ‘‘agencies, and’’; and 

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


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1 ‘‘(6) there is authorized to be appropriated, and 

2 there are appropriated, out of any money in the 

3 Treasury not otherwise appropriated, such sums as 

4 may be necessary for the purpose of carrying out 

5 section 422(c)(7).’’. 

6 (b) EFFECTIVE DATE.—The amendments made by 

7 subsection (a) shall take effect on the date of enactment 

8 of this Act. 

9 SEC. 7. TEMPORARY AUTHORITY TO PURCHASE STUDENT 

10 LOANS. 

11 (a) SPENDING AUTHORITY.— 

12 (1) AUTHORITY GRANTED.—The first sentence 

13 of section 451(a) of the Higher Education Act of 

14 1965 (20 U.S.C. 1087a(a)) is amended— 

15 (A) by inserting ‘‘(1)’’ after ‘‘as may be 

16 necessary’’; and 

17 (B) by inserting before the period at the 

18 end of such sentence the following: ‘‘; and (2) 

19 for purchasing loans under section 459A’’. 

20 (2) CONFORMING AMENDMENT.—Section 

21 451(a) of such Act (20 U.S.C. 1087a(a)) is further 

22 amended by striking ‘‘Such loans shall’’ and insert23 ing ‘‘Loans made under this part shall’’. 

24 (b) TEMPORARY AUTHORITY.—Part D of title IV of 

25 the Higher Education Act of 1965 (20 U.S.C. 1087a et 


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1 seq.) is amended by inserting after section 459 the fol2 lowing new section: 

3 ‘‘SEC. 459A. TEMPORARY AUTHORITY TO PURCHASE STU4 DENT LOANS. 

5 ‘‘(a) AUTHORITY TO PURCHASE.—Upon a deter6 mination by the Secretary that there is an inadequate 

7 availability of loan capital to meet the demand for loans 

8 under sections 428, 428B, and 428H, whether as a result 

9 of inadequate liquidity for such loans or for other reasons, 

10 the Secretary, in consultation with the Secretary of the 

11 Treasury, is authorized to purchase from any eligible lend12 er, as defined by section 435(d)(1), loans originated under 

13 sections 428, 428B, or 428H on or after October 1, 2003, 

14 on such terms as the Secretary determines (after consulta15 tion with the Secretary of the Treasury) are in the best 

16 interest of the United States, except that any loan pur17 chase under this section shall not result in any cost to 

18 the Federal Government. The Secretary shall promptly 

19 publish any determination under this subsection in the 

20 Federal Register. 

21 ‘‘(b) PROCEEDS.—The Secretary shall require, as a 

22 condition of any purchase under subsection (a), that the 

23 funds paid by the Secretary to any eligible lender under 

24 this section shall be used in a manner consistent with en25 suring continued participation of such lender in the FedVerDate Aug 31 2005 22:48 Apr 09, 2008 Jkt 069200 PO 00000 Frm 00013 Fmt 6652 Sfmt 6201 E:\BILLS\H5715.IH H5715

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1 eral student loan programs authorized under part B of 

2 this title. 

3 ‘‘(c) EXPIRATION OF AUTHORITY.—The Secretary’s 

4 authority to purchase loans under this section shall expire 

5 on July 1, 2009.’’. 

6 (c) CONTRACTING AUTHORITY.—Section 456(b) of 

7 the Higher Education Act of 1965 (20 U.S.C. 1087f(b)) 

8 is amended by inserting ‘‘or purchased’’ after ‘‘loans 

9 made’’ each place it appears in paragraphs (2) and (3). 

10 SEC. 8. SENSE OF CONGRESS. 

11 It is a sense of Congress that, at a time when our 

12 economy is fragile and higher education and retraining op13 portunities are more important than ever— 

14 (1) the Federal financial institutions, such as 

15 the Federal Financing Bank and Federal Reserve, 

16 and federally chartered private entities such as the 

17 Federal Home Loan Banks and others, should con18 sider, in consultation with the Secretary of Treasury 

19 and the Secretary of Education, using available au20 thorities in a timely manner, if needed, to assist in 

21 ensuring that students and families can access Fed22 eral student loans for academic year 2008–2009, 

23 and if needed in the subsequent academic year, in a 

24 manner that results in no increased costs to tax25 payers; and 


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1 (2) any action taken as a result of such consid2 eration should in no way limit or delay the Secretary 

3 of Education’s authority to operate the lender-of4 last-resort provisions of section 428(j) of the Higher 

5 Education Act of 1965 (as amended by this Act), 

6 nor the authority to purchase Federal Family Edu7 cation Loan Program loans, as authorized by section 

8 459A of such Act (as added by this Act). 

Æ 


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