[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1338 Introduced in House (IH)]






109th CONGRESS
  1st Session
                                H. R. 1338

  To amend the Higher Education Act of 1965 to permit refinancing of 
 student consolidation loans, increase Pell Grant maximum awards, and 
                          for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 16, 2005

Ms. DeLauro (for herself, Mr. Crowley, Mr. Jefferson, Mr. Pallone, Mr. 
   Bradley of New Hampshire, Mr. Larson of Connecticut, Ms. Lee, Ms. 
   Slaughter, Mr. Conyers, Mr. Gene Green of Texas, Mr. Wexler, Mr. 
 Michaud, Mr. Moran of Virginia, Mr. Israel, Mr. McDermott, Mr. Farr, 
Mr. Waxman, Mr. Strickland, Mrs. Jones of Ohio, Mr. Lantos, Mr. Jackson 
of Illinois, and Mr. Gonzalez) 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 permit refinancing of 
 student consolidation loans, increase Pell Grant maximum awards, 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 ``College Loan Assistance Act of 
2005''.

SEC. 2. REMOVAL OF PROHIBITION ON REFINANCING CONSOLIDATION LOANS.

    (a) Removal of Prohibition.--Section 428C(a)(3) the Higher 
Education Act of 1965 (20 U.S.C. 1078-3(a)(3)) is amended--
            (1) by striking subparagraph (B);
            (2) in subparagraph (C), by striking ``subparagraphs (A) 
        and (B)'' and inserting ``subparagraph (A)''; and
            (3) by redesignating subparagraph (C) as subparagraph (B).
    (b) Reduction of Cap on Interest Rate.--Section 427A(l)(3) of such 
Act (20 U.S.C. 1077a(l)(3)) is amended by striking subparagraph (B) and 
inserting the following:
                    ``(B) 6.8 percent.''.

SEC. 3. EXTENSION AND INCREASE OF PELL GRANT MAXIMUM AMOUNTS.

    Section 401(b)(2)(A) of the Higher Education Act of 1965 (20 U.S.C. 
1070a(b)(2)(A)) is amended by striking ``shall be--'' and all that 
follows through ``less an amount'' and inserting ``shall be $7,000 for 
academic year 2006-2007 and each of the 4 succeeding academic years, 
less an amount''.

SEC. 4. 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 College Loan 
        Assistance Act of 2005--
                    ``(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 College Loan Assistance Act of 2005, 
        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.''.
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