II 109th CONGRESS 2d Session S. 4035 IN THE SENATE OF THE UNITED STATES September 29, 2006 Mr. Schumer introduced the following bill; which was read twice and referred to the Committee on Health, Education, Labor, and Pensions A BILL To amend the Higher Education Act of 1965 to repeal the school as lender program.

1.

School as lender

(a)

Repeal of the school as lender program

Paragraphs (2), (3), and (4) of section 435(d) of the Higher Education Act of 1965 (20 U.S.C. 1085(d)) are repealed. (b)

Conforming amendments

Section 435(d) of the Higher Education Act of 1965 is further amended— (1)in paragraph (1)— (A)by striking subparagraph (E); and (B)by redesignating subparagraphs (F) through (K) as subparagraphs (E) through (J), respectively; and (2)by redesignating paragraphs (5) and (6) as paragraphs (2) and (3), respectively. (c)

Cross references

The Higher Education Act of 1965 (20 U.S.C. 1001 et seq.) is amended— (1)in section 428(h) (20 U.S.C. 1078(h))— (A)in paragraph (1), by striking or (F) and inserting or (E); (B)in paragraph (2)(A), by striking or (F) and inserting or (E); and (C)in paragraph (2)(B), by striking or (F) and inserting or (E); and (2)in section 439 (20 U.S.C. 1087–2)— (A)in subsection (d)(1)(B), by striking or (F) and inserting or (E); and (B)in subsection (o)(2), by striking or (F) and inserting or (E). (d)

Effective Date

The amendments made by this section shall apply to loans for which the first disbursement is made on or after July 1, 2007.

2.

HERA Repeal

Section 8011 of the Higher Education Reconciliation Act of 2005 (Public Law 109–171, 120 Stat. 165) is repealed.