[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2038 Introduced in House (IH)]







104th CONGRESS
  1st Session
                                H. R. 2038

  To amend the Higher Education Act of 1965 to prevent an institution 
  from participating in the Pell Grant program if the institution is 
   ineligible for participation in the Federal Stafford Loan program 
                     because of high default rates.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 13, 1995

  Mrs. Roukema (for herself and Mr. Gordon) introduced the following 
 bill; which was referred to the Committee on Economic and Educational 
                             Opportunities

_______________________________________________________________________

                                 A BILL


 
  To amend the Higher Education Act of 1965 to prevent an institution 
  from participating in the Pell Grant program if the institution is 
   ineligible for participation in the Federal Stafford Loan program 
                     because of high default rates.
    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, 

SECTION 1. DEFAULT RATE INELIGIBILITY FOR PELL GRANT PROGRAM.

    Section 481(a) of the Higher Education Act of 1965 (20 U.S.C. 
1088a) is amended by adding at the end the following new paragraph:
    ``(7) An institution may not qualify as an institution of higher 
education for purposes of the Pell Grant program under subpart 1 of 
part A of this title if such institution is ineligible to participate 
in a loan program under part B of this title as a result of a default 
rate determination under section 435(a).''.

SEC. 2. EFFECTIVE DATE.

    The amendment made by this Act shall apply with respect to periods 
of enrollment beginning on or after the date of enactment of this Act.
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