[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3378 Introduced in House (IH)]







110th CONGRESS
  1st Session
                                H. R. 3378

 To establish a demonstration loan program for nontraditional students.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             August 3, 2007

  Mr. Baird introduced the following bill; which was referred to the 
                    Committee on Education and Labor

_______________________________________________________________________

                                 A BILL


 
 To establish a demonstration loan program for nontraditional students.

    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 Affordability for Working 
Students Act''.

SEC. 2. FINDINGS.

    The Congress finds the following:
            (1) Approximately 2,660,000 students attend institutions on 
        a less than half-time basis.
            (2) The average age of college students has risen and 
        enrollment among older students is rising faster than among 
        those in their late teens.
            (3) Less than half-time enrollment allows students to 
        balance the demands of school, work, and family.
            (4) Only approximately 30 percent of American workers today 
        have a college degree, but more Americans are recognizing how 
        important it is to earn a degree or acquire new skills.
            (5) Job security and success in a global economy requires 
        training and education beyond high school.
            (6) Students who attend school less than half-time are not 
        eligible for Federal subsidized student loans, the largest 
        source of Federal student financial aid.
            (7) A range of financial options exist for less than half-
        time students, yet these options are limited and poorly 
        utilized.

SEC. 3. DEMONSTRATION LOAN PROGRAM AUTHORIZED.

    Part G of title IV of the Higher Education Act of 1965 is amended 
by inserting after section 486 (20 U.S.C. 1093) the following new 
section:

``SEC. 496A. DEMONSTRATION LOAN PROGRAM AUTHORIZED.

    ``(a) Program Authority.--From the amounts made available by 
subsection (g), the Secretary is authorized to carry out a program of 
providing guaranteed and direct loans to less-than-half-time students 
for not more than 6 terms, semesters, or substantially equivalent 
periods of enrollment over the duration of the students' course of 
study in accordance with the requirements of this section. Except as 
otherwise provided in this section--
            ``(1) all terms and conditions for Federal Stafford loans 
        established under section 428 shall apply to guaranteed loans 
        made pursuant to this section; and
            ``(2) all terms and conditions for Federal Direct Stafford 
        loans established under part D shall apply to direct loans made 
        pursuant to this section.
    ``(b) Participation Agreements.--
            ``(1) Agreements.--The Secretary shall enter into 
        participation agreements under this section with any eligible 
        institution or eligible lender (as such terms are defined in 
        section 435) that submits to the Secretary a request for 
        participation and that the Secretary selects for participation 
        in the guaranteed loan or direct loan program (or both) under 
        this section. The Secretary may enter into such agreements with 
        consortia of such institutions or lenders, or consortia of both 
        institutions and lenders.
            ``(2) Selection for participation.--The Secretary is 
        authorized to select for participation in the program not more 
        than an aggregate of 100 institutions of higher education or 
        consortia of institutions of higher education.
            ``(3) Terms and conditions of agreements.--Such agreements 
        shall contain such terms and conditions as the Secretary shall 
        require and shall--
                    ``(A) in the case of agreements with eligible 
                institutions, provide that the institution will--
                            ``(i) identify eligible part-time students 
                        who seek student financial assistance at such 
                        institution; and
                            ``(ii) determine the amount of eligible 
                        education expenses of such students; and
                    ``(B) in the case of agreements with both eligible 
                institutions and eligible lenders--
                            ``(i) provide assurances that the lender or 
                        the institution (as applicable) will comply 
                        with requirements established by the Secretary 
                        relating to student loan information with 
                        respect to loans made under this section;
                            ``(ii) provide that the lender or the 
                        institution (as applicable) accepts 
                        responsibility and financial liability stemming 
                        from its failure to perform its functions 
                        pursuant to the agreement; and
                            ``(iii) include such other provisions as 
                        the Secretary determines are necessary to 
                        protect the interests of the United States and 
                        to promote the purposes of this section.
            ``(4) Withdrawal and termination procedures.--The Secretary 
        shall establish procedures by which institutions or lenders may 
        withdraw or be terminated from the program under this section.
    ``(c) Special Loan Terms and Conditions.--A loan under this 
section--
            ``(1) shall be repaid in accordance with a repayment plan 
        selected by the borrower commencing 6 months after the date the 
        borrower ceases to be enrolled;
            ``(2) be subject to deferral of repayment during any period 
        of enrollment in which the borrower is enrolled as student, 
        even if less-than-half-time; and
            ``(3) during any such deferment--
                    ``(A) shall not be subject to periodic installments 
                of principal; and
                    ``(B) interest--
                            ``(i) in the case of a loan made by an 
                        eligible lender, shall be paid by the 
                        Secretary; and
                            ``(ii) in the case of a loan made by the 
                        Secretary, shall not accrue.
    ``(d) Waivers.--The Secretary is authorized to waive, for any 
institution of higher education participating in the program under this 
section, the requirements of section 472 that relate to limiting the 
definition of the cost of attendance for less-than-half-time students, 
especially paragraphs (2) and (4) of such section, with the goal of 
allowing the institution to use the same definition of the cost of 
attendance for less than half-time students as is used for students 
attending at least half-time.
    ``(e) Evaluations and Reports.--
            ``(1) Evaluations.--The Secretary shall evaluate the 
        demonstration program authorized under this section on an 
        annual basis. Such evaluations shall review--
                    ``(A) the extent to which each institution and 
                lender participating in the demonstration program has 
                met the requirements of the participation agreement, 
                including program quality assurance;
                    ``(B) the number of students participating in the 
                demonstration program, including the progress of 
                participating students towards recognized certificates 
                or degrees and the extent to which persistence or 
                completion increased or decreased for students in the 
                demonstration program;
                    ``(C) the extent to which persistence or completion 
                increased or decreased for students in the 
                demonstration program as compared to a comparable group 
                of students;
                    ``(D) the willingness of lenders to participate and 
                obstacles that discourage participation by lenders; and
                    ``(E) the effect that limitations on the number of 
                terms that a less-than-half-time student may receive 
                these loans has on their course of study.
            ``(2) Reports.--Not later than 42 months after the 
        initiation of the program authorized under this section, the 
        Secretary shall report to the Committee on Health, Education, 
        Labor, and Pensions of the Senate and the Committee on 
        Education and Labor of the House of Representatives with 
        respect to--
                    ``(A) the evaluations of the demonstration program 
                authorized under this section; and
                    ``(B) any proposed statutory changes designed to 
                enhance persistence and completion for students.
    ``(f) Oversight.--In conducting the demonstration program 
authorized under this section, the Secretary shall, on a continuing 
basis--
            ``(1) ensure the compliance of institutions and lenders 
        participating in the demonstration program with the 
        requirements of this title (other than the sections and 
        regulations that are waived under this section); and
            ``(2) provide technical assistance.
    ``(g) Appropriation.--There shall be available to the Secretary to 
carry out this section, from funds not otherwise appropriated, such 
sums as may be necessary for fiscal year 2008 and each of the 4 
succeeding fiscal years.''.
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