[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3863 Introduced in House (IH)]







104th CONGRESS
  2d Session
                                H. R. 3863

 To amend the Higher Education Act of 1965 to permit lenders under the 
 unsubsidized Federal Family Education Loan program to pay origination 
                      fees on behalf of borrowers.


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                    IN THE HOUSE OF REPRESENTATIVES

                             July 22, 1996

 Mr. Goodling (for himself, Mr. Greenwood, Mr. McKeon, Mr. Fattah, Mr. 
  Fawell, Mr. Clinger, and Mr. Gekas) 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 permit lenders under the 
 unsubsidized Federal Family Education Loan program to pay origination 
                      fees on behalf of borrowers.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Student Debt Reduction Act of 
1996''.

SEC. 2. UNSUBSIDIZED STUDENT LOANS.

    (a) Amendment.--Paragraph (1) of section 428H(f) of the Higher 
Education Act of 1965 (20 U.S.C. 1078-8(f)(1)) is amended to read as 
follows:
            ``(1) Amount of origination fee.--Except as provided in 
        paragraph (5), an origination fee shall be paid to the 
        Secretary with respect to each loan under this section in the 
        amount of 3.0 percent of the principal amount of the loan. Each 
        lender under this section is authorized to charge the borrower 
        for such origination fee. Any such fee charged to the borrower 
        shall be deducted proportionately from each installment payment 
        of the proceeds of the loan prior to payment to the 
        borrower.''.
    (b) Conforming Amendments.--Section 428H of such Act is further 
amended--
            (1) in paragraph (3), by striking ``the origination fee'' 
        and inserting ``any origination fee that is charged to the 
        borrower''; and
            (2) in paragraph (4), by striking ``origination fees 
        authorized to be collected from borrowers'' and inserting 
        ``origination fees required under paragraph (1)''.
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