II 
Calendar No. 722 
110TH CONGRESS 
2D SESSION 
H. R. 5715 
IN THE SENATE OF THE UNITED STATES 
APRIL 28, 2008 
Received; read the first time 
APRIL 29, 2008 
Read the second time and placed on the calendar 
AN ACT 
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 Representa-
tives 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’’. 
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SEC. 2. INCREASING UNSUBSIDIZED STAFFORD LOAN LIM-
ITS 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 para-
graphs (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 sec-
tion 428. 
‘‘(2) LIMITS
FOR
GRADUATE
AND
PROFES-
SIONAL STUDENTS.— 
‘‘(A) ANNUAL LIMITS.—The maximum an-
nual amount of loans under this section a grad-
uate or professional student may borrow in any 
academic year (as defined in section 481(a)(2)) 
or its equivalent shall be the amount deter-
mined under paragraph (1), plus— 
‘‘(i) in the case of such a student who 
is a graduate or professional student at-
tending an eligible institution, $12,000; 
and 
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‘‘(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 re-
quiring 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 para-
graph (1), adjusted to reflect the increased an-
nual limits described in subparagraph (A), as 
prescribed by the Secretary by regulation. 
‘‘(3) LIMITS
FOR
UNDERGRADUATE
DEPEND-
ENT STUDENTS.— 
‘‘(A) ANNUAL LIMITS.—The maximum an-
nual amount of loans under this section an un-
dergraduate dependent student (except an un-
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‘‘(II) if such student is enrolled 
in a program of undergraduate edu-
cation, 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 semes-
ter, trimester, quarter, or clock hours 
bears to one academic year; and 
‘‘(iii) in the case of such a student en-
rolled 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 pro-
gram. 
‘‘(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 capital-
ized shall not be deemed to exceed a maximum ag-
gregate amount determined under subparagraph (B) 
of paragraph (2), (3), or (4).’’. 
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(b) STUDENT ELIGIBILITY.—Loan limit increases 
authorized by the amendments made by this section shall 
be available only to students who meet the requirements 
of section 484(a) of the Higher Education Act of 1965 
(20 U.S.C. 1091(a)). 
(c) 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) of the Higher 
Education Act of 1965 (20 U.S.C. 1078–2(d)) is amended 
by amending paragraphs (1) and (2) to read as follows: 
‘‘(1) COMMENCEMENT
OF
REPAYMENT.—Re-
payment of principal on loans made under this sec-
tion shall— 
‘‘(A) commence not later than— 
‘‘(i) 60 days after the date such loan 
is disbursed by the lender, except as pro-
vided in clause (ii); and 
‘‘(ii) if agreed upon by a parent bor-
rower, the day after 6 months after the 
date the student for whom the loan is bor-
rowed ceases to carry at least one-half the 
normal full-time academic workload (as de-
termined by the institution); and 
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‘‘(B) be subject to deferral during any pe-
riod during which the graduate or professional 
student or the parent meets the conditions re-
quired 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 begin-
ning 
of 
repayment 
under 
paragraph 
(1)(A)(i), shall be added to the principal 
amount of the loan; and 
‘‘(ii) which accrues prior to the begin-
ning 
of 
repayment 
under 
paragraph 
(1)(A)(ii) or during a period in which pay-
ments of principal are deferred pursuant to 
paragraph (1)(B) shall, if agreed upon by 
the borrower and the lender— 
‘‘(I) be paid monthly or quar-
terly; or 
‘‘(II) be added to the principal 
amount of the loan not more fre-
quently than quarterly by the lender. 
‘‘(B) INSURABLE
LIMITS.—Capitalization 
of interest under this paragraph shall not be 
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deemed to exceed the annual insurable limit on 
account of the borrower.’’. 
(b) 
CONFORMING
AMENDMENT.—Section 
428(b)(7)(C) of such Act (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) of the Higher Education Act of 
1965 (20 U.S.C. 1078–2(a)(3)) is amended to read as fol-
lows: 
‘‘(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 bor-
rower under this section. 
‘‘(B)(i) EXTENUATING CIRCUMSTANCES.— 
For loans made on or after July 1, 2008, and 
before July 1, 2009, a lender may determine 
that extenuating circumstances exist under the 
regulations promulgated pursuant to paragraph 
(1)(A) if an applicant for a loan under this sec-
tion is delinquent for 180 days or less on their 
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home mortgage payments and is not more than 
89 days delinquent on the repayment of any 
other debt. 
‘‘(ii) MASTER CALENDAR INAPPLICABLE.— 
Section 482 shall not apply to determinations 
made under clause (i).’’. 
SEC. 5. LENDER-OF-LAST-RESORT. 
(a) IN GENERAL.—Section 428(j) of the Higher Edu-
cation 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 sec-
tion who are otherwise unable to obtain loans under 
this part’’ and inserting ‘‘eligible students and par-
ents who are otherwise unable to obtain loans under 
this part (except for consolidation loans under sec-
tion 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 oth-
erwise obtain loans under this part (except for con-
solidation loans under section 428C),’’ after ‘‘lender, 
nor’’; 
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(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 sub-
section 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 QUALIFICA-
TION.—Upon the request of an institution of higher 
education and pursuant to standards developed by 
the Secretary, the Secretary shall designate such in-
stitution for participation in the lender-of-last-resort 
program under this paragraph. If the Secretary des-
ignates an institution under this paragraph, the 
guaranty agency designated for the State in which 
the institution is located shall make loans, in the 
same manner as such loans are made under para-
graph (1), to students and parent borrowers of the 
designated institution, regardless of whether the stu-
dents or parent borrowers are otherwise unable to 
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