I 
108TH CONGRESS 
1ST SESSION H. R. 2505
To amend the Higher Education Act of 1965 to permit refinancing of student 
consolidation loans, increase Pell Grant maximum awards, and for other 
purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 18, 2003
Ms. DELAURO 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 permit 
refinancing of student consolidation loans, increase Pell 
Grant maximum awards, 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 ‘‘College Loan Assist-
ance Act of 2003’’.
SEC. 2. REMOVAL OF PROHIBITION ON REFINANCING CON-
SOLIDATION LOANS. 
(a) REMOVAL OF PROHIBITION.—Section 428C(a)(3) 
the Higher Education Act of 1965 (20 U.S.C. 1078–
3(a)(3)) is amended—
(1) by striking subparagraph (B); 
(2) in subparagraph (C), by striking ‘‘subpara-
graphs (A) and (B)’’ and inserting ‘‘subparagraph 
(A)’’; and 
(3) by redesignating subparagraph (C) as sub-
paragraph (B). 
(b) REDUCTION OF CAP ON INTEREST RATE.—Sec-
tion 427A(l)(3) of such Act (20 U.S.C. 1077a(l)(3)) is 
amended by striking subparagraph (B) and inserting the 
following: 
‘‘(B) 6.8 percent.’’. 
SEC. 3. EXTENSION AND INCREASE OF PELL GRANT MAX-
IMUM AMOUNTS. 
Section 401(b)(2)(A) of the Higher Education Act of 
1965 (20 U.S.C. 1070a(b)(2)(A)) is amended—
(1) by striking ‘‘and’’ at the end of clause (iv); 
(2) by striking the comma at the end of clause 
(v) and inserting a semicolon; and 
(3) by inserting after clause (v) the following 
new clauses: 
‘‘(vi) $7,000 for academic year 2004–2005; and
‘‘(vii) $7,000 for academic year 2006–2006,’’. 
SEC. 4. 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 Student Loan Relief 
Act of 2003—
‘‘(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 Student Loan Relief Act of 2003, the Secretary 
shall not collect directly or indirectly from any bor-
rower any origination fee with respect to such loan, 
or any other fee relating to the origination of a loan 
however described.’’.
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