[Congressional Record Volume 152, Number 43 (Thursday, April 6, 2006)]
[Senate]
[Pages S3234-S3235]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. DURBIN:
  S. 2573. A bill to amend the Higher Education Act of 1965 to provide 
interest rate reductions, to authorize and appropriate amounts for the 
Federal Pell Grant program, to allow for in-school consolidation, to 
provide the administrative account for the Federal Direct Loan Program 
as a mandatory program, to strike the single holder rule, and for other 
purposes; to the Committee on Health, Education, Labor, and Pensions.
  Mr. DURBIN. Mr. President, I ask unanimous consent that the text of 
the bill be printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 2573

       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 ``Reverse the Raid on Student 
     Aid Act of 2006''.

     SEC. 2. INTEREST RATE REDUCTIONS.

       (a) FFEL Interest Rates.--Section 427A(l) (20 U.S.C. 
     1077a(l)) is amended--
       (1) in paragraph (1)--
       (A) by striking ``6.8 percent'' and inserting ``3.4 
     percent''; and
       (B) by inserting before the period at the end the 
     following: ``, except that for any loan made pursuant to 
     section 428H for which the first disbursement is made on or 
     after July 1, 2006, the applicable rate of interest shall be 
     6.8 percent on the unpaid principal balance of the loan''; 
     and
       (2) in paragraph (2), by striking ``8.5 percent'' and 
     inserting ``4.25 percent''.
       (b) Direct Loans.--Section 455(b)(7) (20 U.S.C. 
     1087e(b)(7)) is amended--
       (1) in subparagraph (A)--
       (A) by striking ``and Federal Direct Unsubsidized Stafford 
     Loans'';
       (B) by striking ``6.8 percent'' and inserting ``3.4 
     percent''; and
       (C) by inserting before the period at the end the 
     following: ``, and for any Federal Direct Unsubsidized 
     Stafford Loan made for which the first disbursement is made 
     on or after July 1, 2006, the applicable rate of interest 
     shall be 6.8 percent on the unpaid principal balance of the 
     loan''; and
       (2) in subparagraph (B), by striking ``7.9 percent'' and 
     inserting ``4.25 percent''.

     SEC. 3. FEDERAL PELL GRANT AWARDS.

       Section 401 of the Higher Education Act of 1965 (20 U.S.C. 
     1070a) is amended--
       (1) in subsection (b)--
       (A) in paragraph (2)(A), by striking clauses (i) through 
     (v) and inserting the following:
       ``(i) $4,500 for academic year 2007-2008;
       ``(ii) $4,800 for academic year 2008-2009;
       ``(iii) $5,200 for academic year 2009-2010;
       ``(iv) $5,600 for academic year 2010-2011; and
       ``(v) $6,000 for academic year 2011-2012,'';
       (B) in paragraph (3)(A), by striking ``an appropriation 
     Act'' and inserting ``this section''; and
       (C) in paragraph (7), by striking ``the appropriate 
     Appropriation Act for this subpart'' and inserting ``this 
     section'';
       (2) by striking subsection (g);
       (3) by redesignating subsections (h), (i), and (j), as 
     subsections (g), (h), and (i), respectively; and
       (4) by adding at the end the following:
       ``(j) Authorization and Appropriation of Funds.--There are 
     authorized to be appropriated, and there are appropriated, to 
     carry out this section--
       ``(1) for academic year 2007-2008, such sums as may be 
     necessary to award each student eligible for a Federal Pell 
     Grant for such academic year not more than $4,500;
       ``(2) for academic year 2008-2009, such sums as may be 
     necessary to award each student eligible for a Federal Pell 
     Grant for such academic year not more than $4,800;
       ``(3) for academic year 2009-2010, such sums as may be 
     necessary to award each student eligible for a Federal Pell 
     Grant for such academic year not more than $5,200;
       ``(4) for academic year 2010-2011, such sums as may be 
     necessary to award each student eligible for a Federal Pell 
     Grant for such academic year not more than $5,600;
       ``(5) for academic year 2011-2012, such sums as may be 
     necessary to award each student eligible for a Federal Pell 
     Grant for such academic year not more than $6,000; and
       ``(6) for each subsequent academic year, such sums as may 
     be necessary to award each student eligible for a Federal 
     Pell Grant for such subsequent academic year not more than 
     the amount that is equal to the maximum award amount for the 
     previous academic year increased by a percentage equal to the 
     estimated percentage increase in the Consumer Price Index (as 
     determined by the Secretary) between such previous academic 
     year and such subsequent academic year.''.

     SEC. 4. IN-SCHOOL CONSOLIDATION.

       Section 428(b)(7)(A) of the Higher Education Act of 1965 
     (20 U.S.C. 1078(b)(7)(A)) is amended by striking ``shall 
     begin'' and all that follows through the period and inserting 
     ``shall begin--
       ``(i) the day after 6 months after the date the student 
     ceases to carry at least one-half the normal full-time 
     academic workload (as determined by the institution); or
       ``(ii) on an earlier date if the borrower requests and is 
     granted a repayment schedule that provides for repayment to 
     commence at an earlier date.''.

     SEC. 5. ADMINISTRATIVE ACCOUNT FOR DIRECT LOAN PROGRAM.

       Section 458 of the Higher Education Act of 1965 (20 U.S.C. 
     1087h) is amended to read as follows:

     ``SEC. 458. FUNDS FOR ADMINISTRATIVE EXPENSES.

       ``(a) Administrative Expenses.--
       ``(1) In general.--Each fiscal year there shall be 
     available to the Secretary, from funds not otherwise 
     appropriated, funds to be obligated for--

[[Page S3235]]

       ``(A) administrative costs under this part and part B, 
     including the costs of the direct student loan programs under 
     this part; and
       ``(B) account maintenance fees payable to guaranty agencies 
     under part B and calculated in accordance with subsection 
     (b),

     not to exceed (from such funds not otherwise appropriated) 
     $904,000,000 in fiscal year 2007, $943,000,000 in fiscal year 
     2008, $983,000,000 in fiscal year 2009, $1,023,000,000 in 
     fiscal year 2010, $1,064,000,000 in fiscal year 2011, and 
     $1,106,000,000 in fiscal year 2012.
       ``(2) Account maintenance fees.--Account maintenance fees 
     under paragraph (1)(B) shall be paid quarterly and deposited 
     in the Agency Operating Fund established under section 422B.
       ``(3) Carryover.--The Secretary may carry over funds made 
     available under this section to a subsequent fiscal year.
       ``(b) Calculation Basis.--Account maintenance fees payable 
     to guaranty agencies under subsection (a)(1)(B) shall not 
     exceed the basis of 0.10 percent of the original principal 
     amount of outstanding loans on which insurance was issued 
     under part B.
       ``(c) Budget Justification.--No funds may be expended under 
     this section unless the Secretary includes in the Department 
     of Education's annual budget justification to Congress a 
     detailed description of the specific activities for which the 
     funds made available by this section have been used in the 
     prior and current years (if applicable), the activities and 
     costs planned for the budget year, and the projection of 
     activities and costs for each remaining year for which 
     administrative expenses under this section are made 
     available.''.

     SEC. 6. SINGLE HOLDER RULE.

       Subparagraph (A) of section 428C(b)(1) of the Higher 
     Education Act of 1965 (20 U.S.C. 1078-3(b)(1)) is amended by 
     striking ``and (i)'' and all that follows through ``so 
     selected for consolidation)''.
                                 ______