[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2518 Introduced in House (IH)]







105th CONGRESS
  1st Session
                                H. R. 2518

 To amend the Higher Education Act of 1965 to increase student options 
for the consolidation of their student loan obligations, and for other 
                               purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 23, 1997

  Mr. Boehner (for himself, Mr. Gordon, Mr. McIntosh, Mr. Herger, Mr. 
Hayworth, and Mr. Hutchinson) 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 increase student options 
for the consolidation of their student loan obligations, and for other 
                               purposes.

    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 Loan Options Act''.

SEC. 2. TWO-WAY CONSOLIDATION AUTHORITY.

    (a) Ability of Part D Borrowers To Obtain Federal Stafford 
Consolidation Loans.--Section 428C(a)(4) (20 U.S.C. 1078-3(a)(4)) is 
amended--
            (1) by redesignating subparagraphs (B), (C), and (D) as 
        subparagraphs (C), (D), and (E), respectively; and
            (2) by inserting after subparagraph (A) the following new 
        subparagraph:
                    ``(B) made under part D of this title;''.
    (b) Ability of Part B Borrowers To Obtain Federal Direct 
Consolidation Loans.--Paragraph (5) of section 428C(b) (20 U.S.C. 1078-
3(b)) is amended to read as follows:
            ``(5) Direct consolidation loans for borrowers in specified 
        circumstances.--(A) The Secretary may offer a Federal Direct 
        Consolidation loan if such borrower is otherwise eligible for a 
        consolidation loan pursuant to this section and such borrower 
        is unable to obtain a consolidation loan from any lender with 
        an agreement under subsection (a)(1) that holds one of such 
        borrower's loans under this part.
            ``(B) The Secretary shall establish appropriate 
        certification procedures to verify the eligibility of borrowers 
        for consolidation loans under this paragraph.
            ``(C) The Secretary shall not offer consolidation loans 
        under this paragraph if, in the Secretary's judgment, the 
        Department does not have the necessary origination and 
        servicing arrangements in place for such loans.''.

SEC. 3. REDUCTION OF DIRECT LOAN ADMINISTRATIVE BUDGET.

    Section 458(a)(1) of the Higher Education Act of 1965 (20 U.S.C. 
1087h(a)(1)) is amended to read as follows:
            ``(1) In general.--Each fiscal year, there shall be 
        available to the Secretary from funds not otherwise 
        appropriated, funds to be obligated for--
                    ``(A) administrative costs under this part and part 
                B, including the costs of the direct student loan 
                programs under this part, and
                    ``(B) administrative cost allowances payable to 
                guaranty agencies under part B and calculated in 
                accordance with paragraph (2),
        not to exceed (from such funds not otherwise appropriated) 
        $497,000,000 in fiscal year 1998, $600,000,000 in fiscal year 
        1999, $695,000,000 in fiscal year 2000, $735,000,000 in fiscal 
        year 2001, and $730,000,000 in fiscal year 2002. Administrative 
        cost allowances under subparagraph (B) of this paragraph shall 
        be paid quarterly and used in accordance with section 428(f). 
        The Secretary may carry over funds available under this section 
        to a subsequent fiscal year.''.
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