3.0.0 5565 2023-01-11T13:25:34Z 2023-01-11T13:25:34Z House H HR 2014-09-18 113 From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]By Mr. CARNEY:H.R. 5565.Congress has the power to enact this legislation pursuantto the following:Article I, Section 8, Clause I of the United StatesConstitution, the Taxing and Spending Clause: ``The Congressshall have Power To lay and collect Taxes, Duties, Impostsand Excises, to pay the Debts and provide for the commonDefence and general Welfare of the United States . . . ''[Page H7889]]]> hsed00 Education and the Workforce Committee House Standing hsed13 Higher Education and Workforce Development Subcomittee Referred to 2014-11-17T22:01:46Z Referred to 2014-09-18T13:04:15Z Protect Student Borrowers Act of 2013 113 1873 S 2013-12-19 Read twice and referred to the Committee on Health, Education, Labor, and Pensions. Related bill CRS 2014-11-17 hsed13 Higher Education and Workforce Development Subcomittee 1 House committee actions Referred to the Subcommittee on Higher Education and Workforce Training. Committee 2014-09-18 Referred to the House Committee on Education and the Workforce. IntroReferral H11100 2 House floor actions hsed00 Education and the Workforce Committee 2014-09-18 Introduced in House IntroReferral Intro-H 9 Library of Congress 2014-09-18 Introduced in House IntroReferral 1000 9 Library of Congress C001083 Rep. Carney, John C., Jr. [D-DE-At Large] John Carney D DE C. N Education Congressional oversight Education programs funding Higher education Student aid and college costs Education 00 2014-09-18 Introduced in House 2014-11-05T13:39:56Z Protect Student Borrowers Act - Amends title IV (Student Assistance) of the Higher Education Act of 1965 to require institutions of higher education (IHEs) participating in the William D. Ford Federal Direct Loan program to accept specified risk-sharing requirements.

Requires an IHE, for any fiscal year in which at least 25% of the IHE's student body is participating in the Direct Loan program, to remit, at such times as the Secretary of Education specifies, a risk-sharing payment set at:

  • 20% of the total amount of its defaulted Direct loans if its cohort default rate is 30% or higher,
  • 15% of the total amount of its defaulted Direct loans if its cohort default rate is lower than 30% but not lower than 25%,
  • 10% of the total amount of its defaulted Direct loans if its cohort default rate is lower than 25% but not lower than 20%, and
  • 5% of the total amount of its defaulted Direct loans if its cohort default rate is lower than 20% but not lower than 15%.

Directs the Secretary to make specified modifications to such risk-sharing requirements if an IHE develops and implements a student loan management plan that is approved by the Secretary. Requires that plan to include individualized financial aid counseling for students and strategies to minimize student loan default and delinquency.

Allows the Secretary to waive or reduce an IHE's risk-sharing payments in certain other instances.

Prohibits IHEs from denying admission or financial aid to a student based on a perception that the student may be at risk for defaulting on a Direct loan.

Authorizes the Secretary to enter into contracts or cooperative agreements for: (1) statewide or institutionally-based programs for the prevention of federal student loan delinquency and default at IHEs that have a high cohort default rate or serve large numbers or percentages of students who have a higher risk of defaulting on student loans under title IV, and (2) increasing the number of borrowers who successfully rehabilitate defaulted loans

Establishes a separate account in the Treasury for the deposit of the risk-sharing payments, of which: (1) up to 50% are to be used by the Secretary to enter into the contracts or cooperative agreements for delinquency and default prevention or rehabilitation, and (2) the remainder are to be used to offset any future shortfalls in funding under the Federal Pell Grant program.

Makes an IHE's ability to meet its obligation to make risk-sharing payments part of the determination of its eligibility to participate in title IV programs.

]]> Protect Student Borrowers Act Display Title Protect Student Borrowers Act Official Title as Introduced To provide for institutional risk-sharing in the Federal student loan programs. Introduced in House IH Short Titles as Introduced Protect Student Borrowers Act Introduced in House 2014-09-18T04:00:00Z https://www.govinfo.gov/content/pkg/BILLS-113hr5565ih/xml/BILLS-113hr5565ih.xml 2014-11-17 Referred to the Subcommittee on Higher Education and Workforce Training. text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Congressional Research Service, Library of Congress This file contains bill summaries and statuses for federal legislation. A bill summary describes the most significant provisions of a piece of legislation and details the effects the legislative text may have on current law and federal programs. Bill summaries are authored by the Congressional Research Service (CRS) of the Library of Congress. As stated in Public Law 91-510 (2 USC 166 (d)(6)), one of the duties of CRS is "to prepare summaries and digests of bills and resolutions of a public general nature introduced in the Senate or House of Representatives". For more information, refer to the User Guide that accompanies this file.