[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1307 Introduced in House (IH)]







105th CONGRESS
  1st Session
                                H. R. 1307

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


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 10, 1997

  Mrs. Roukema (for herself and Mr. Gordon) 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 prohibit an institution 
   that is ineligible for participation in the Federal Stafford Loan 
 program because of high default rates from participating in the Pell 
                             Grant program.

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

SECTION 1. PELL GRANT INSTITUTIONAL INELIGIBILITY BASED ON DEFAULT RATE 
              DETERMINATIONS.

    Section 401 of the Higher Education Act of 1965 (20 U.S.C. 1070a) 
is amended by adding at the end the following new subsection:
    ``(j) Institutional Ineligibility Based on Default Rates.--
            ``(1) In general.--No institution of higher education shall 
        be an eligible institution for purposes of this section if such 
        institution of higher education is ineligible to participate in 
        a loan program under this title as a result of a final default 
        rate determination made by the Secretary under part B or D of 
        this title, or both, and issued by the Secretary.
            ``(2) Exception.--Paragraph (1) shall not apply to an 
        institution that--
                    ``(A) was not participating in the loan program 
                under part B or D of this title on such date (or would 
                not have been participating on such date but for the 
                pendency of an appeal of a default rate determination 
                issued prior to such date), unless the institution 
                subsequently participates in either such loan program; 
                or
                    ``(B) has a participation rate index (as defined at 
                34 CFR 668.17) that is less than or equal to 0.0375.
            ``(3) Sanctions subject to appeal opportunity.--No 
        institution may be subject to the terms of this subsection 
        unless it has had the opportunity to appeal its default rate 
        determination under regulations issued by the Secretary for the 
        Federal Family Education Loan or Federal Direct Loan Program, 
        as applicable.''.
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