[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2672 Introduced in House (IH)]







105th CONGRESS
  1st Session
                                H. R. 2672

 To amend the Higher Education Act of 1965 to prevent Federal student 
   assistance need analysis from penalizing parents for investing in 
                       prepaid tuition programs.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            October 9, 1997

   Mr. Wise 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 prevent Federal student 
   assistance need analysis from penalizing parents for investing in 
                       prepaid tuition programs.

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

SECTION 1. SHORT TITLE; REFERENCE.

    (a) Short Title.--This Act may be cited as the ``Tuition Investment 
Planning Protection Act of 1997''.
    (b) Reference.--Except as otherwise expressly provided, whenever in 
this Act an amendment or repeal is expressed in terms of an amendment 
to, or repeal of, a section or other provision, the reference shall be 
considered to be made to a section or other provision of the Higher 
Education Act of 1965 (20 U.S.C. 1001 et seq.).

SEC. 2. TREATMENT OF PREPAID TUITION PLANS.

    (a) Tuition Plans Not Treated as Financial Aid.--Section 480(j) (20 
U.S.C. 1087vv(j)) is amended by striking paragraph (2) and inserting 
the following:
    ``(2) For purposes of determining a student's eligibility for funds 
under this title, tuition prepayment plans shall not be considered 
estimated financial assistance.''.
    (b) Tuition Plans Treated as Assets.--Section 480(f) is amended by 
adding at the end the following new paragraph:
    ``(3) With respect to determinations of need under this title, any 
tuition prepayment plan shall, in accordance with regulations 
prescribed by the Secretary, be treated--
            ``(A) as an asset of the parents, in the case of a 
        dependent student; or
            ``(B) as an asset of the student, in the case of an 
        independent student (with or without dependents).''.
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