110 HR 3378 IH: College Affordability for Working U.S. House of Representatives 2007-08-03 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.

I 110th CONGRESS 1st Session H. R. 3378 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.

1.

Short title

This Act may be cited as the College Affordability for Working Students Act.

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.

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:

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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