[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3371 Introduced in House (IH)]

113th CONGRESS
  1st Session
                                H. R. 3371

To exempt certain education loans made by States from certain preferred 
      lender requirements under the Higher Education Act of 1965.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            October 29, 2013

   Mr. Hinojosa (for himself and Mr. Castro of Texas) introduced the 
 following bill; which was referred to the Committee on Education and 
                             the Workforce

_______________________________________________________________________

                                 A BILL


 
To exempt certain education loans made by States from certain preferred 
      lender requirements under the Higher Education Act of 1965.

    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 ``State Loan Access and Student 
Protection Act''.

SEC. 2. EXCEPTION FOR CERTAIN EDUCATION LOANS MADE BY STATES.

    Section 487(h) of the Higher Education Act of 1965 (20 U.S.C. 
1094(h)) is amended--
            (1) in paragraph (1)(B)--
                    (A) in clause (i), by striking ``and'' at the end;
                    (B) by inserting ``and'' at the end of clause (ii); 
                and
                    (C) by inserting after clause (ii), the following:
                            ``(iii) in the case of education loans made 
                        by a State (and whose terms and conditions are 
                        established by the State), which are 
                        recommended, promoted, or endorsed by the 
                        institution, and that do not meet the 
                        requirement of clause (i) with respect to 
                        having not less than two lenders of such loans 
                        who are not affiliates of each other included 
                        on the preferred lender list--
                                    ``(I) the institution's only 
                                actions to recommend, promote, or 
                                endorse such loans are--
                                            ``(aa) informing students 
                                        and the families of such 
                                        students about such loans; and
                                            ``(bb) providing financial 
                                        aid packages that include such 
                                        loans to students who have 
                                        previously been awarded such 
                                        loans;
                                    ``(II) the terms and conditions of 
                                such loans (including interest rates, 
                                fees, available repayment and 
                                forgiveness options, and such other 
                                information as the Secretary determines 
                                necessary) are--
                                            ``(aa) using the form 
                                        developed by the Secretary 
                                        under paragraph (3), disclosed 
                                        to the borrower and compared to 
                                        the terms and conditions of a 
                                        loan made under part D; and
                                            ``(bb) at least as 
                                        favorable to borrowers as the 
                                        terms and conditions of a loan 
                                        under made under part D, as 
                                        determined in accordance with 
                                        such criteria as may be 
                                        established by the Secretary; 
                                        and
                                    ``(III) the institution prominently 
                                discloses to borrowers the methods and 
                                criteria used by the institution to 
                                select such loans for the 
                                recommendation, promotion, or 
                                endorsement described in clause (I).''; 
                                and
            (2) by adding at the end the following:
            ``(3) Comparison form.--Not later than 6 months after the 
        date of the enactment of the State Loan Access and Student 
        Protection Act, the Secretary shall develop a form for the 
        purposes of the disclosure and comparison required under 
        paragraph (1)(B)(iii)(II)(aa).
            ``(4) Rule of construction.--Nothing in this subsection 
        shall be construed to require an institution to carry out the 
        actions described in items (aa) and (bb) of paragraph 
        (1)(B)(iii)(I).''.

SEC. 3. INAPPLICABILITY OF TITLE IV NEGOTIATED RULEMAKING REQUIREMENT 
              AND MASTER CALENDAR EXCEPTION.

    Sections 482(c) and 492 of the Higher Education Act of 1965 (20 
U.S.C. 1089(c), 1098a) shall not apply to the amendments made by 
section 2, or to any regulations promulgated under those amendments.

SEC. 4. EFFECTIVE DATE.

    The amendments made by section 2(1) shall be effective with respect 
to academic year 2014-2015 and each succeeding academic year.
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