H. R. 3504—4 
determine the annual amount to provide to the educational institu-
tion under subparagraph (A) as follows: 
‘‘(i) For the academic year beginning August 1, 2020, the 
amount shall be the total amount, determined in consultation 
with the educational institution, that the Secretary paid under 
this section for covered work-study activities to individuals 
enrolled at such educational institution during the academic 
year beginning August 1, 2018. 
‘‘(ii) Except as provided by clauses (ii) or (iii) of subpara-
graph (D), for each academic year beginning on or after August 
1, 2021, the amount shall be the total amount the educational 
institution paid under this section for work-study allowance 
for covered work-study activities to individuals enrolled at such 
educational institution during the previous academic year in 
which individuals participated in the work-study program. 
‘‘(C) With respect to a participating educational institution that 
did not participate in the work-study program under this section 
during the academic year beginning August 1, 2018, the Secretary 
shall determine the annual amount to provide to the educational 
institution under subparagraph (A) as follows: 
‘‘(i) For the first academic year in which the educational 
institution participates in the work-study program beginning 
on or after August 1, 2020, the amount shall be an amount, 
determined in consultation with the educational institution, 
that the Secretary determines appropriate based on amounts 
provided to similar educational institutions pursuant to 
subparagraph (B). 
‘‘(ii) Except as provided by clauses (ii) or (iii) of subpara-
graph (D), for each academic year occurring after the academic 
year specified in clause (i), the amount shall be the total amount 
the educational institution paid under this section for work- 
study allowance for covered work-study activities to individuals 
enrolled at such educational institution during the previous 
academic year in which individuals enrolled at such educational 
institution participated in the work-study program. 
‘‘(D)(i) Except as provided in clause (ii), if the Secretary provides 
an annual amount to a participating educational institution under 
subparagraph (B) or (C) that is more than the total amount the 
educational institution pays to individuals under paragraph (1) 
for covered work-study activities, the educational institution shall 
return to the Secretary the unpaid amount and the Secretary shall 
transfer such amount into the general fund of the Treasury. 
‘‘(ii) If the annual amount provided to a participating edu-
cational institution under subparagraph (B) or (C) is more, but 
less than 25 percent more, than the total amount the educational 
institution pays to individuals under paragraph (1) for covered 
work-study activities, and the educational institution plans to 
participate in the work-study program under this section during 
the subsequent academic year, the educational institution may 
retain the amount of the overpayment if the educational institution 
notifies the Secretary of the amount of the overpayment and the 
intention of the educational institution to retain such amount. Any 
amount retained by an educational institution under this clause 
may only be used by the educational institution to provide work- 
study allowance to individuals enrolled at the educational institu-
tion.
H. R. 3504—5 
‘‘(iii) At any time a participating educational institution may 
request the Secretary to increase the annual amount that the 
Secretary provides the educational institution under subparagraph 
(B) or (C). The Secretary shall approve or disapprove such request 
by not later than 30 days after the date of the request. 
‘‘(iv) Whenever the Secretary finds that a participating edu-
cational institution paid an amount of work-study allowance under 
this paragraph to an individual for a purpose other than covered 
work-study activities, such payment shall constitute a liability of 
the educational institution to the United States. 
‘‘(E)(i) Pursuant to section 3690(c), section 3693, and other 
provisions of chapter 36 of this title, the Secretary shall ensure 
that participating educational institutions carry out the work-study 
allowance program in compliance with this section. 
‘‘(ii) The Secretary may prohibit an educational institution from 
being a participating educational institution under this paragraph 
if the Secretary determines that the educational institution is not 
in compliance with this section. 
‘‘(F) In this paragraph: 
‘‘(i) The term ‘covered work-study activities’ means quali-
fying work-study activities described in subparagraphs (A), (B), 
(H), (I), or (J) of paragraph (5) for which an individual is 
paid a work-study allowance. 
‘‘(ii) The term ‘participating educational institution’ means 
an educational institution that— 
‘‘(I)(aa) during the five-academic-year period occurring 
before an academic year during which the Secretary carries 
out this paragraph, the educational institution had on aver-
age more than 10 individuals per academic year partici-
pating in a covered work-study activity under this section; 
or 
‘‘(bb) the educational institution is not described by 
item (aa) but informs the Secretary that the institution 
expects to have more than 10 individuals in the following 
academic year participating in a covered work-study 
activity under this section; and 
‘‘(II) voluntarily chooses to be a participating edu-
cational institution under this paragraph.’’. 
(b) CONFORMING AMENDMENT.—Subsection (e)(1) of such section 
is amended by striking ‘‘subsection (a)(4)’’ and inserting ‘‘subsection 
(a)(5)’’. 
(c) APPLICATION.—The amendments made by this section shall 
apply with respect to a quarter, semester, or term, as applicable, 
commencing on or after August 1, 2021. 
SEC. 7. ADJUSTMENT OF LOAN FEES. 
Section 3729(b)(2) of title 38, United States Code, is amended 
by striking the loan fee table and inserting the following:
H. R. 3504—6 
‘‘Type of loan 
Active 
duty 
veteran 
Reservist 
Other 
obligor 
(A)(i) Initial loan described in section 
3710(a) to purchase or construct a 
dwelling with 0-down, or any other ini-
tial loan described in section 3710(a) 
other than with 5-down or 10-down 
(closed on or after October 1, 2004, and 
before January 1, 2020) 
2.15 
2.40 
NA 
(A)(ii) Initial loan described in section 
3710(a) to purchase or construct a 
dwelling with 0-down, or any other ini-
tial loan described in section 3710(a) 
other than with 5-down or 10-down 
(closed on or after January 1, 2020, 
and before April 7, 2023) 
2.30 
2.30 
NA 
(A)(iii) Initial loan described in section 
3710(a) to purchase or construct a 
dwelling with 0-down, or any other ini-
tial loan described in section 3710(a) 
other than with 5-down or 10-down 
(closed on or after April 7, 2023, and 
before October 1, 2029) 
2.15 
2.15 
NA 
(A)(iv) Initial loan described in section 
3710(a) to purchase or construct a 
dwelling with 0-down, or any other ini-
tial loan described in section 3710(a) 
other than with 5-down or 10-down 
(closed on or after October 1, 2029) 
1.40 
1.40 
NA 
(B)(i) Subsequent loan described in sec-
tion 3710(a) to purchase or construct a 
dwelling with 0-down, or any other 
subsequent loan described in section 
3710(a) (closed on or after October 1, 
2004, and before January 1, 2020) 
3.30 
3.30 
NA 
(B)(ii) Subsequent loan described in sec-
tion 3710(a) to purchase or construct a 
dwelling with 0-down, or any other 
subsequent loan described in section 
3710(a) (closed on or after January 1, 
2020, and before April 7, 2023) 
3.60 
3.60 
NA 
(B)(iii) Subsequent loan described in sec-
tion 3710(a) to purchase or construct a 
dwelling with 0-down, or any other 
subsequent loan described in section 
3710(a) (closed on or after April 7, 
2023, and before October 1, 2029) 
3.30 
3.30 
NA 
(B)(iv) Subsequent loan described in sec-
tion 3710(a) to purchase or construct a 
dwelling with 0-down, or any other 
subsequent loan described in section 
3710(a) (closed on or after October 1, 
2029) 
1.25 
1.25 
NA
H. R. 3504—7 
‘‘Type of loan 
Active 
duty 
veteran 
Reservist 
Other 
obligor 
(C)(i) Loan described in section 3710(a) to 
purchase or construct a dwelling with 
5-down (closed before January 1, 2020) 
1.50 
1.75 
NA 
(C)(ii) Loan described in section 3710(a) 
to purchase or construct a dwelling 
with 5-down (closed on or after Janu-
ary 1, 2020, and before April 7, 2023) 
1.65 
1.65 
NA 
(C)(iii) Loan described in section 3710(a) 
to purchase or construct a dwelling 
with 5-down (closed on or after April 7, 
2023, and before October 1, 2029) 
1.50 
1.50 
NA 
(C)(iv) Loan described in section 3710(a) 
to purchase or construct a dwelling 
with 5-down (closed on or after October 
1, 2029) 
0.75 
0.75 
NA 
(D)(i) Loan described in section 3710(a) to 
purchase or construct a dwelling with 
10-down (closed before January 1, 
2020) 
1.25 
1.50 
NA 
(D)(ii) Loan described in section 3710(a) 
to purchase or construct a dwelling 
with 10-down (closed on or after Janu-
ary 1, 2020, and before April 7, 2023) 
1.40 
1.40 
NA 
(D)(iii) Loan described in section 3710(a) 
to purchase or construct a dwelling 
with 10-down (closed on or after April 
7, 2023, and before October 1, 2029) 
1.25 
1.25 
NA 
(D)(iv) Loan described in section 3710(a) 
to purchase or construct a dwelling 
with 10-down (closed on or after Octo-
ber 1, 2029) 
0.50 
0.50 
NA 
(E) Interest rate reduction refinancing 
loan 
0.50 
0.50 
NA 
(F) Direct loan under section 3711 
1.00 
1.00 
NA 
(G) Manufactured home loan under sec-
tion 3712 (other than an interest rate 
reduction refinancing loan) 
1.00 
1.00 
NA 
(H) Loan to Native American veteran 
under section 3762 (other than an in-
terest rate reduction refinancing loan) 
1.25 
1.25 
NA 
(I) Loan assumption under section 3714 
0.50 
0.50 
0.50 
(J) Loan under section 3733(a) 
2.25 
2.25 
2.25’’. 
SEC. 8. DETERMINATION OF BUDGETARY EFFECTS. 
The budgetary effects of this Act, for the purpose of complying 
with the Statutory Pay-As-You-Go Act of 2010, shall be determined 
by reference to the latest statement titled ‘‘Budgetary Effects of 
PAYGO Legislation’’ for this Act, submitted for printing in the
H. R. 3504—8 
Congressional Record by the Chairman of the House Budget Com-
mittee, provided that such statement has been submitted prior 
to the vote on passage. 
Speaker of the House of Representatives. 
Vice President of the United States and
President of the Senate.