IB 
Union Calendar No. 361 
110TH CONGRESS 
2D SESSION 
H. R. 5715 
[Report No. 110–583] 
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 
APRIL 14, 2008 
Additional sponsors: Mr. DAVIS of Illinois, Mr. DAVID DAVIS of Tennessee, 
Mr. KELLER of Florida, Mr. OLVER, Ms. EDDIE BERNICE JOHNSON of 
Texas, Mr. THOMPSON of Mississippi, Mr. PAYNE, Mr. KENNEDY, Mr. 
ELLISON, Mr. LEWIS of Georgia, Mr. KILDEE, Mrs. MCCARTHY of New 
York, Ms. CLARKE, Ms. LINDA T. SA´NCHEZ of California, Mr. FORTUN˜O, 
and Mr. KUCINICH 
APRIL 14, 2008 
Committed to the Committee of the Whole House on the State of the Union 
and ordered to be printed 
A BILL 
To ensure continued availability of access to the Federal 
student loan program for students and families. 
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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’’. 
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)) 
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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, $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 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-
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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-
dergraduate dependent student whose parents 
are unable to borrow under section 428B or the 
Federal Direct PLUS Loan Program) may bor-
row 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
INDE-
PENDENT STUDENTS.— 
‘‘(A) ANNUAL LIMITS.—The maximum an-
nual amount of loans under this section an un-
dergraduate independent student, or an under-
graduate dependent student whose parents are 
unable to borrow under section 428B or the 
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Federal Direct PLUS Loan Program, may bor-
row 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 at-
tending 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 edu-
cation 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 pro-
gram measured in semester, trimester, 
quarter, or clock hours bears to one 
academic year; 
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‘‘(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 remain-
der of a program of undergraduate edu-
cation— 
‘‘(I) $7,000; or 
‘‘(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. 
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rowed ceases to carry at least one-half the 
normal full-time academic workload (as de-
termined by the institution); and 
‘‘(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 
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‘‘(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 
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 bor-
rower 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 cir-
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cumstances requirement described in regula-
tions 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 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 ‘‘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 oth-
erwise obtain loans under this part (except for con-
solidation loans under section 428C),’’ after ‘‘lender, 
nor’’; 
(3) in paragraph (3)(C)— 
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(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 guaranty agency designated for a 
State shall designate such institution for participa-
tion in the lender-of-last-resort program under this 
paragraph. If the guaranty agency designates an in-
stitution 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 other-
wise unable to obtain loans under this part (other 
than a consolidation loan under section 428C).’’. 
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(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— 
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(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 insert-
ing ‘‘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 fol-
lowing new section: 
‘‘SEC. 459A. TEMPORARY AUTHORITY TO PURCHASE STU-
DENT LOANS. 
‘‘(a) AUTHORITY TO PURCHASE.—Upon a deter-
mination 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 lend-
er, 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 consulta-
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