[Congressional Record Volume 150, Number 131 (Tuesday, November 16, 2004)]
[Extensions of Remarks]
[Page E1984]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




 REDUCING CERTAIN SPECIAL ALLOWANCE PAYMENTS AND PROVIDING ADDITIONAL 
           TEACHER LOAN FORGIVENESS ON FEDERAL STUDENT LOANS

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                          HON. JOHN A. BOEHNER

                                of ohio

                    in the house of representatives

                       Tuesday, November 16, 2004

  Mr. BOEHNER. Mr. Speaker, the Taxpayer-Teacher Protection Act is the 
right thing to do at the right time. As I said, this closes the 
loophole for lenders billing the 9.5 percent floor on special allowance 
by prohibiting this billing on loans from bonds that have been 
refunded, refinanced, extended, matured, retired, or defeased, on or 
after October 1, 2004 and before January 1, 2006. Also prohibited is 
the billing of 9.5 percent floor special allowance by the holder for 
all loans sold or otherwise pledged, refinanced or transferred to 
another holder as defined in the Higher Education Act (HEA) on or after 
October 1, 2004 and before January 1, 2006. While it does allow for 
limited billing on recycled loans, that billing is permitted only on 
loans financed by pre-1993 tax-exempt bonds, or within such tax-exempt 
refunded bonds done prior to October 1, 2004, and only for the duration 
of these bonds. These prospective changes take a major step in closing 
the window to these subsidies for loan providers. This bill redirects 
the savings realized from this change to one of this country's greatest 
resources--highly qualified teachers. This bill also allows Congress to 
continue its work on the reauthorization of the Higher Education Act to 
ensure any permanent changes made to this issue are done so with open 
debate and clear consideration of the students we want to assist in 
reaching their higher education goals.

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