[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1622 Introduced in House (IH)]







107th CONGRESS
  1st Session
                                H. R. 1622

  To reduce the costs of Federal student loans to students and their 
                   families, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 26, 2001

Mr. George Miller of California (for himself, Mrs. Mink of Hawaii, Ms. 
Woolsey, Ms. Solis, Mr. Andrews, Mr. Wu, Mr. Kildee, and Mr. Hinojosa) 
 introduced the following bill; which was referred to the Committee on 
                      Education and the Workforce

_______________________________________________________________________

                                 A BILL


 
  To reduce the costs of Federal student loans to students and their 
                   families, 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 ``Affordable Student Loans Act of 
2001''.

SEC. 2. ELIMINATION OF LOAN FEES TO BORROWERS.

    (a) Federal Family Education Loan Program.--Section 438(c) of the 
Higher Education Act of 1965 (20 U.S.C. 1087-1(c)) is amended by adding 
at the end the following new paragraph :
            ``(9) Origination fees terminated.--Notwithstanding any 
        other provision of this subsection, with respect to any loan 
        made, insured, or guaranteed under this part on or after the 
        first July 1 after the date of enactment of the Affordable 
        Student Loans Act of 2001--
                    ``(A) no eligible lender may collect directly or 
                indirectly from any borrower any origination fee with 
                respect to such loan, or any other fee relating to the 
                origination of a loan however described; and
                    ``(B) the Secretary shall not collect any 
                origination fee from the lender under this 
                subsection.''.
    (b) Federal Direct Loan Program.--Section 455(c) of such Act (20 
U.S.C. 1087e(c)) is amended to read as follows:
    ``(c) Loan Fee.--
            ``(1) Temporary provision.--Subject to paragraph (2), the 
        Secretary shall charge the borrower of a loan made under this 
        part an origination fee of 4.0 percent of the principal amount 
        of loan.
            ``(2) Termination of origination fee.--With respect to any 
        loan made under this part on or after the first July 1 after 
        the date of enactment of Affordable Student Loans Act of 2001, 
        the Secretary shall not collect directly or indirectly from any 
        borrower any origination fee with respect to such loan, or any 
        other fee relating to the origination of a loan however 
        described.''.

SEC. 3. INSURANCE PREMIUMS.

    (a) FFEL Program.--
            (1) Subsidized loans.--Section 428(b)(1) of the Higher 
        Education Act of 1965 (20 U.S.C. 1078(b)(1)) is amended by 
        striking subparagraph (H) and inserting the following:
                    ``(H) does not provide or permit the collection of 
                any insurance premium directly or indirectly from the 
                borrower or from the proceeds of any loan to the 
                borrower;''.
            (2) Unsubsidized loans.--Section 428H of such Act (20 
        U.S.C. 1078-8) is amended by striking subsection (h) and 
        inserting the following:
    ``(h) Insurance Premiums Prohibited.--A State or nonprofit private 
institution or organization having an agreement with the Secretary 
under section 428(b)(1) may not collect any insurance premium directly 
or indirectly from the borrower or from the proceeds of any loan to the 
borrower pursuant to this section.''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
apply with respect to any loan made, insured, or guaranteed under part 
B of title IV of the Higher Education Act of 1965 on or after the first 
July 1 after the date of enactment of this Act.

SEC. 4. EXPANSION OF VOLUNTARY FLEXIBLE AGREEMENTS WITH GUARANTY 
              AGENCIES.

    (a) Amendment.--Section 428A(a) of the Higher Education Act of 1965 
(20 U.S.C.1078-1(a)) is amended by striking paragraph (3) and inserting 
the following:
            ``(3) Eligibility.--Any guaranty agency or consortium 
        thereof may enter into a voluntary flexible agreement with the 
        Secretary.''.
    (b) Immediate Effective Date.--The amendment made by subsection (a) 
shall take effect on the date of enactment of this Act.
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