I 
108TH CONGRESS 
2D SESSION 
H. R. 4102 
To amend the Higher Education Act of 1965 to provide access and equity 
in higher education, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
APRIL 1, 2004 
Mr. ANDREWS (for himself, Mr. CARDIN, Mrs. MCCARTHY of New York, Mr. 
HINOJOSA, Mr. FROST, Mr. CROWLEY, Mr. HINCHEY, Mr. BROWN of 
Ohio, Mr. ENGEL, and Ms. MCCOLLUM) introduced the following bill; 
which was referred to the Committee on Education and the Workforce 
A BILL 
To amend the Higher Education Act of 1965 to provide 
access and equity in higher education, and for other 
purposes. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; REFERENCES; EFFECTIVE DATE. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Access and Equity in Higher Education Act’’. 
(b) REFERENCES.—Except as otherwise expressly 
provided, whenever in this Act an amendment or repeal 
is expressed in terms of an amendment to, or repeal of, 
a section or other provision, the reference shall be consid-
ered to be made to a section or other provision of the 
Higher Education Act of 1965 (20 U.S.C. 1001 et seq.). 
(c) EFFECTIVE DATE.—Except as otherwise provided 
in this Act, the amendments made by this Act shall apply 
with respect to any loan for which the first disbursement 
of principal is made on or after the date of enactment of 
this Act. 
TITLE I—STUDENT ASSISTANCE 
SEC. 101. LOAN LIMITS. 
(a) FFEL LOANS.— 
(1) INCREASES IN SUBSIDIZED LOAN LIMITS.— 
Section 428(b)(1) (20 U.S.C. 1078(b)(1)) is amend-
ed— 
(A) in subparagraph (A)(i), by striking 
‘‘$2,625’’ in subclause (I) and inserting 
‘‘$4,000’’; 
(B) in subparagraph (A)(ii), by striking 
‘‘$3,500’’ in subclause (I) and inserting 
‘‘$6,000’’; 
(C) in subparagraph (A)(iii), by striking 
subclause (I) and inserting the following: 
‘‘(I) $20,000 minus any amount 
previously borrowed during any pre-
ceding academic year in such remain-
der of such program (but excluding
amounts borrowed under clause (i) or 
(ii) for such first and second year); 
or’’; 
(D) in subparagraph (A)(v), by striking 
‘‘$8,500’’ and inserting ‘‘$10,000’’; 
(E) in subparagraph (B)(i), by striking 
‘‘$23,000’’ and inserting ‘‘$30,000’’; and 
(F) in subparagraph (B)(ii)— 
(i) by striking ‘‘$65,500’’ and insert-
ing ‘‘$60,000’’; 
(ii) by striking ‘‘and (I) including’’ 
and inserting ‘‘but (I) excluding’’; and 
(iii) by striking ‘‘but (II)’’ and insert-
ing ‘‘and (II)’’. 
(2) INCREASES IN UNSUBSIDIZED LOAN LIM-
ITS.—Section 428H(d)(1) (20 U.S.C. 1078–8(d)(1)) 
is amended— 
(A) in subparagraph (A)(i), by striking 
‘‘$4,000’’ and inserting ‘‘$5,500’’; 
(B) in subparagraph (B)(i), by striking 
‘‘$5,000’’ and inserting ‘‘$20,000 minus any 
amount previously borrowed during any pre-
ceding academic year in such remainder of such 
program (but excluding amounts borrowed
under subparagraph (A) for such first and sec-
ond year)’’; and 
(C) in subparagraph (C), by striking 
‘‘$10,000’’ and inserting ‘‘$25,000 minus the 
amount borrowed for the same academic year in 
a subsidized loan under section 428 or part D’’. 
(3) AUTHORITY
TO
REDUCE
LOAN
LIMITS.— 
Section 428(a)(2)(D) (20 U.S.C. 1078(a)(2)(D)) is 
amended by adding at the end the following new 
sentence: ‘‘An eligible institution may, in carrying 
out such subparagraphs, provide a statement which 
certifies the eligibility of a student for a loan 
amount that is less than such maximum amount, 
and that is less than the amount for which the stu-
dent shows financial need, if the institution has es-
tablished a lesser amount than such maximum 
amount as the loan limit applicable to the students 
attending such institution.’’. 
(4) CONFORMING AMENDMENTS TO FISL.— 
(A) 
ANNUAL
LIMITS.—Section 
425(a)(1)(A) (20 U.S.C. 1075(a)(1)(A)) is 
amended— 
(i) in clause (i)(I), by striking 
‘‘$2,625’’ in subclause (I) and inserting 
‘‘$4,000’’;
(ii) in clause (ii)(I), by striking 
‘‘$3,500’’ in subclause (I) and inserting 
‘‘$6,000’’; 
(iii) in clause (iii), by striking sub-
clause (I) and inserting the following: 
‘‘(I) $20,000 minus the amount 
previously borrowed during any pre-
ceding academic year in such remain-
der of such program (and excluding 
amounts borrowed under clause (i) or 
(ii) for such first and second year); 
or’’; and 
(iv) 
in 
clause 
(iv), 
by 
striking 
‘‘$8,500’’ and inserting ‘‘$10,000’’. 
(B) 
AGGREGATE
LIMITS.—Section 
425(a)(2)(A) is amended— 
(i) in clause (i), by striking ‘‘$23,000’’ 
and inserting ‘‘$30,000’’; and 
(ii) in clause (ii)— 
(I) by striking ‘‘$65,500’’ and in-
serting ‘‘$60,000’’; 
(II) by striking ‘‘and (I) includ-
ing’’ and inserting ‘‘but (I) exclud-
ing’’; and
(III) by striking ‘‘but (II)’’ and 
inserting ‘‘and (II)’’. 
SEC. 102. ORIGINATION FEES. 
(a) FEDERAL
FAMILY
EDUCATION
LOAN
PRO-
GRAM.—Section 438(c) of the Higher Education Act of 
1965 (20 U.S.C. 1087–1(c)) is amended by adding at the 
end the following new paragraph: 
‘‘(9) ORIGINATION FEES TERMINATED.— 
‘‘(A) IN GENERAL.—Notwithstanding any 
other provision of this subsection except for 
subparagraph (B) of this paragraph, with re-
spect to any loan made, insured, or guaranteed 
under this part on or after July 1, 2005, other 
than a loan made under section 428B or 
428H— 
‘‘(i) no eligible lender may collect di-
rectly or indirectly from any borrower any 
origination fee with respect to such loan; 
and 
‘‘(ii) the Secretary shall not collect 
such origination fee from the lender under 
this subsection. 
‘‘(B) 
UNSUBSIDIZED
LOANS.—Notwith-
standing subparagraph (A), with respect to any
loan made under section 428H on or after July 
1, 2005— 
‘‘(i) an eligible lender may collect an 
origination fee with respect to such loan 
under paragraph (2), except that such 
paragraph shall be applied by substituting 
‘1.5 percent’ for ‘3.0 percent’; and 
‘‘(ii) the Secretary shall collect any 
such origination fee from the lender under 
paragraph (1) of this subsection.’’. 
(b) FEDERAL DIRECT LOAN PROGRAM.— 
(1) AMENDMENT.—Section 455(c) (20 U.S.C. 
1087e(c)) is amended to read as follows: 
‘‘(c) LOAN FEE.—The Secretary shall charge— 
‘‘(1) the borrower of a Federal Direct Stafford 
Loan an origination fee of 1.0 percent of the prin-
cipal amount of the loan; 
‘‘(2) the borrower of a Federal Direct Stafford 
Unsubsidized Stafford Loan an origination fee of 2.5 
percent of the principal amount of the loan; and 
‘‘(3) the borrower of a Federal Direct PLUS 
loan an origination fee of 4.0 percent of the prin-
cipal amount of the loan.’’. 
(2) EFFECTIVE DATE.—The amendment made 
by paragraph (1) shall apply with respect to any