College Student Relief Act of 2007

Bill: 110-hr-5
Sponsor: Rep. Miller, George [D-CA-7]
Introduced: 2007-01-12 in the House
Policy area: Education
Subjects: Administrative fees
Collection of accounts
Commerce
Economics and Public Finance
Federal aid to education
Federally-guaranteed loans
Finance and Financial Sector
Government lending
Higher education
Interest rates
Law
Rebates
Small business
Student loan funds
Subsidies

Summary:
action_date: 2007-01-12
text: 
College Student Relief Act of 2007 - Amends the Higher Education Act of 1965 to phase-in cuts in the interest rate charged undergraduate student borrowers under the Federal Family Education Loan (FFEL) and Direct Loan (DL) programs, thereby reducing such rate from 6.8% in July 2006 to 3.4% in July 2011.
 
Limits FFEL lender insurance to 95% of the unpaid balance of such loans. (Currently, 97% of a FFEL issued after June 2006 is federally-insured.)
 
Provides for graduated reductions in the percentage of defaulted FFEL loan collections a guaranty agency is allowed to retain until, beginning in October 2010, it is equal to the average rate paid to collection agencies that have contracts with the Secretary of Education.
 
Eliminates exceptional performer status for lenders, servicers, and guaranty agencies, which rewards such entities for high due diligence in FFEL collection.
 
Reduces special allowance payments made to FFEL lenders to compensate them for the difference between FFEL interest rates and market rates. Exempts small lenders from such reduction.
 
Increases the loan fee charged FFEL lenders from .5% to 1% of the principal amount of loans disbursed after June 2007. Prohibits its collection from borrowers. 
 
Increases, after June 2007, the rebate fee charged a holder of FFEL consolidated loans, provided that at least 90% of the total principal and accrued unpaid interest outstanding on loans held by such holder are such loans.

action_date: 2007-01-17
text: 

(This measure has not been amended since it was introduced. The summary of that version is repeated here.)

 
College Student Relief Act of 2007 - Amends the Higher Education Act of 1965 to phase-in cuts in the interest rate charged undergraduate student borrowers under the Federal Family Education Loan (FFEL) and Direct Loan (DL) programs, thereby reducing such rate from 6.8% in July 2006 to 3.4% in July 2011.
 
Limits FFEL lender insurance to 95% of the unpaid balance of such loans. (Currently, 97% of a FFEL issued after June 2006 is federally-insured.)
 
Provides for graduated reductions in the percentage of defaulted FFEL loan collections a guaranty agency is allowed to retain until, beginning in October 2010, it is equal to the average rate paid to collection agencies that have contracts with the Secretary of Education.
 
Eliminates exceptional performer status for lenders, servicers, and guaranty agencies, which rewards such entities for high due diligence in FFEL collection.
 
Reduces special allowance payments made to FFEL lenders to compensate them for the difference between FFEL interest rates and market rates. Exempts small lenders from such reduction.
 
Increases the loan fee charged FFEL lenders from .5% to 1% of the principal amount of loans disbursed after June 2007. Prohibits its collection from borrowers. 
 
Increases, after June 2007, the rebate fee charged a holder of FFEL consolidated loans, provided that at least 90% of the total principal and accrued unpaid interest outstanding on loans held by such holder are such loans.


Legislative actions:
action_date: 2007-01-17
text: Received in the Senate and Read twice and referred to the Committee on Health, Education, Labor, and Pensions.
action_date: 2007-01-17
text: Motion to reconsider laid on the table Agreed to without objection.
action_date: 2007-01-17
text: On passage Passed by the Yeas and Nays: 356 - 71 (Roll no. 32). (text: CR H597-598)
action_date: 2007-01-17
text: Passed/agreed to in House: On passage Passed by the Yeas and Nays: 356 - 71 (Roll no. 32).(text: CR H597-598)
action_date: 2007-01-17
text: On motion to recommit with instructions Failed by the Yeas and Nays: 186 - 241 (Roll no. 31).
action_date: 2007-01-17
text: The previous question on the motion to recommit with instructions was ordered without objection. (consideration: CR H630)
action_date: 2007-01-17
text: Floor Summary: DEBATE - The House proceeded with 10 minutes of debate on the McKeon motion to recommit with instructions. The instructions contained in the motion seek to require the bill to be reported back to the House with an amendment inserting a new section providing for benefits contingent on income or military service.
action_date: 2007-01-17
text: Mr. McKeon moved to recommit with instructions to Education and Labor. (consideration: CR H628-630; text: CR H628-629)
action_date: 2007-01-17
text: The previous question was ordered pursuant to the rule. (consideration: CR H628)
action_date: 2007-01-17
text: DEBATE - The House proceeded with three hours of debate on H.R. 5.
action_date: 2007-01-17
text: Rule provides for consideration of H.R. 5 with 3 hours of general debate. Previous question shall be considered as ordered without intervening motions except motion to recommit with or without instructions. Measure will be considered read. Bill is closed to amendments.
action_date: 2007-01-17
text: Considered under the provisions of rule H. Res. 65. (consideration: CR H597-631)
action_date: 2007-01-17
text: Rule H. Res. 65 passed House.
action_date: 2007-01-16
text: Rules Committee Resolution H. Res. 65 Reported to House. Rule provides for consideration of H.R. 5 with 3 hours of general debate. Previous question shall be considered as ordered without intervening motions except motion to recommit with or without instructions. Measure will be considered read. Bill is closed to amendments.
action_date: 2007-01-12
text: Referred to the House Committee on Education and Labor.
action_date: 2007-01-12
text: Sponsor introductory remarks on measure. (CR E101-102)
action_date: 2007-01-12
text: Introduced in House
action_date: 2007-01-12
text: Introduced in House