I
107TH CONGRESS
1ST SESSION
H. R. 1622
To reduce the costs of Federal student loans to students and their families,
and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
APRIL 26, 2001
Mr. GEORGE MILLER of California (for himself, Mrs. MINK of Hawaii, Ms.
WOOLSEY, Ms. SOLIS, Mr. ANDREWS, Mr. WU, Mr. KILDEE, and Mr.
HINOJOSA) introduced the following bill; which was referred to the Com-
mittee on Education and the Workforce
A BILL
To reduce the costs of Federal student loans to students
and their families, 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.
This Act may be cited as the ‘‘Affordable Student
Loans Act of 2001’’.
SEC. 2. ELIMINATION OF LOAN FEES TO BORROWERS.
(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.—Not-
withstanding any other provision of this subsection,
with respect to any loan made, insured, or guaran-
teed under this part on or after the first July 1 after
the date of enactment of the Affordable Student
Loans Act of 2001—
‘‘(A) no eligible lender may collect directly
or indirectly from any borrower any origination
fee with respect to such loan, or any other fee
relating to the origination of a loan however de-
scribed; and
‘‘(B) the Secretary shall not collect any
origination fee from the lender under this sub-
section.’’.
(b) FEDERAL DIRECT LOAN PROGRAM.—Section
455(c) of such Act (20 U.S.C. 1087e(c)) is amended to
read as follows:
‘‘(c) LOAN FEE.—
‘‘(1) TEMPORARY PROVISION.—Subject to para-
graph (2), the Secretary shall charge the borrower
of a loan made under this part an origination fee of
4.0 percent of the principal amount of loan.
‘‘(2) TERMINATION
OF
ORIGINATION
FEE.—
With respect to any loan made under this part on
or after the first July 1 after the date of enactment
of Affordable Student Loans Act of 2001, the Sec-
retary shall not collect directly or indirectly from
any borrower any origination fee with respect to
such loan, or any other fee relating to the origina-
tion of a loan however described.’’.
SEC. 3. INSURANCE PREMIUMS.
(a) FFEL PROGRAM.—
(1) SUBSIDIZED LOANS.—Section 428(b)(1) of
the Higher Education Act of 1965 (20 U.S.C.
1078(b)(1)) is amended by striking subparagraph
(H) and inserting the following:
‘‘(H) does not provide or permit the collec-
tion of any insurance premium directly or indi-
rectly from the borrower or from the proceeds
of any loan to the borrower;’’.
(2) UNSUBSIDIZED LOANS.—Section 428H of
such Act (20 U.S.C. 1078–8) is amended by striking
subsection (h) and inserting the following:
‘‘(h) INSURANCE PREMIUMS PROHIBITED.—A State
or nonprofit private institution or organization having an
agreement with the Secretary under section 428(b)(1)
may not collect any insurance premium directly or indi-
rectly from the borrower or from the proceeds of any loan
to the borrower pursuant to this section.’’.
(b) EFFECTIVE DATE.—The amendments made by
subsection (a) shall apply with respect to any loan made,
insured, or guaranteed under part B of title IV of the
Higher Education Act of 1965 on or after the first July
1 after the date of enactment of this Act.
SEC. 4. EXPANSION OF VOLUNTARY FLEXIBLE AGREE-
MENTS WITH GUARANTY AGENCIES.
(a) AMENDMENT.—Section 428A(a) of the Higher
Education Act of 1965 (20 U.S.C.1078–1(a)) is amended
by striking paragraph (3) and inserting the following:
‘‘(3) ELIGIBILITY.—Any guaranty agency or
consortium thereof may enter into a voluntary flexi-
ble agreement with the Secretary.’’.
(b) IMMEDIATE EFFECTIVE DATE.—The amendment
made by subsection (a) shall take effect on the date of
enactment of this Act.
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