[House Report 110-590]
[From the U.S. Government Publishing Office]



110th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     110-590

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PROVIDING FOR CONSIDERATION OF THE BILL (H.R. 5715) TO ENSURE CONTINUED 
AVAILABILITY OF ACCESS TO THE FEDERAL STUDENT LOAN PROGRAM FOR STUDENTS 
                              AND FAMILIES

                                _______
                                

   April 15, 2008.--Referred to the House Calendar and ordered to be 
                                printed

                                _______
                                

    Ms. Castor, from the Committee on Rules, submitted the following

                              R E P O R T

                      [To accompany H. Res. 1107]

    The Committee on Rules, having had under consideration 
House Resolution 1107, by a record vote of 8-4, report the same 
to the House with the recommendation that the resolution be 
adopted.

                SUMMARY OF PROVISIONS OF THE RESOLUTION

    The resolution provides for consideration of H.R. 5715, the 
Ensuring Continued Access to Student Loans Act of 2008, under a 
structured rule. The rule provides one hour of general debate 
equally divided and controlled by the chairman and ranking 
minority member of the Committee on Education and Labor. The 
rule waives all points of order against consideration of the 
bill except clauses 9 and 10 of rule XXI. The rule provides 
that the amendment printed in Part A of the Rules Committee 
report accompanying the resolution shall be considered as 
adopted and that the bill, as amended, shall be considered as 
read. The rule waives all points of order against provisions of 
the bill, as amended. (This waiver does not affect the point of 
order available under clause 9 of rule XXI (regarding earmark 
disclosure).
    The rule provides that no further amendments to the bill, 
as amended, shall be in order except those amendments printed 
in Part B of this report. The further amendments made in order 
may be offered only in the order printed in this report, may be 
offered only by a Member designated in this report, shall be 
considered as read, shall be debatable for the time specified 
in this report equally divided and controlled by the proponent 
and an opponent, shall not be subject to amendment, and shall 
not be subject to a demand for division of the question in the 
House or in the Committee of the Whole. The rule waives all 
points of order against the further amendments printed in this 
report except for clauses 9 and 10 of rule XXI. The rule 
provides one motion to recommit with or without instructions. 
The rule provides that, notwithstanding the operation of the 
previous question, the Chair may postpone further consideration 
of the bill to a time designated by the Speaker.

                         EXPLANATION OF WAIVERS

    The waiver of all points of order against consideration of 
the bill (except for clauses 9 and 10 of rule XXI) includes a 
waiver of clause 4(a) of rule XIII requiring a three-day 
layover of the committee report, a waiver of clause 3(a)(1)(B) 
of rule XIII requiring a recital on the cover of the report 
that it contains supplemental, minority, or additional views, a 
waiver of clause 3(c)(2) of rule XIII requiring a Congressional 
Budget Office cost estimate in the committee report on any 
legislation containing new budget authority, new spending 
authority, new credit authority or a change in revenues, and a 
waiver of clause 3(d)(2) of rule XIII, requiring the inclusion 
of an estimate by the committee of the costs that would be 
incurred in carrying out the bill or joint resolution in the 
fiscal year in which it is reported and in each of the five 
fiscal years following that fiscal year. The waiver of all 
points of order against provisions in the bill includes a 
waiver of clause 4 of rule XXI prohibiting appropriations in 
legislative bills.

                            COMMITTEE VOTES

    The results of each record vote on an amendment or motion 
to report, together with the names of those voting for and 
against, are printed below:

Rules Committee record vote No. 471

    Date: April 15, 2008.
    Measure: H.R. 5715.
    Motion by: Mr. Hastings (WA).
    Summary of motion: To make in order and provide appropriate 
waivers for an amendment by Rep. McKeon (CA), #11, which adds a 
Sense of Congress that the implementation of the PLUS loan 
auction should be delayed until July 1, 2010.
    Results: Defeated 4-8.
    Vote by Members: McGovern--Nay; Hastings (FL)--Nay; 
Matsui--Nay; Welch--Nay; Castor--Nay; Arcuri--Nay; Sutton--Nay; 
Dreier--Yea; Diaz-Balart--Yea; Hastings (WA)--Yea; Sessions--
Yea; Slaughter--Nay.

Rules Committee record vote No. 472

    Date: April 15, 2008.
    Measure: H.R. 5715.
    Motion by: Mr. Sessions.
    Summary of motion: To make in order and provide appropriate 
waivers for an amendment by Rep. Franks (AZ), #1, which 
expresses a Sense of Congress regarding the passage of the 
College Cost Reduction Act.
    Results: Defeated 4-8.
    Vote by Members: McGovern--Nay; Hastings (FL)--Nay; 
Matsui--Nay; Welch--Nay; Castor--Nay; Arcuri--Nay; Sutton--Nay; 
Dreier--Yea; Diaz-Balart--Yea; Hastings (WA)--Yea; Sessions--
Yea; Slaughter--Nay.

Rules Committee record vote No. 473

    Date: April 15, 2008.
    Measure: H.R. 5715.
    Motion by: Mr. McGovern.
    Summary of motion: To report the rule.
    Results: Adopted 8-4.
    Vote by Members: McGovern--Yea; Hastings (FL)--Yea; 
Matsui--Yea; Welch--Yea; Castor--Yea; Arcuri--Yea; Sutton--Yea; 
Dreier--Nay; Diaz-Balart--Nay; Hastings (WA)--Nay; Sessions--
Nay; Slaughter--Yea.

               SUMMARY OF AMENDMENT CONSIDERED AS ADOPTED

    The amendment further clarifies the authority of the 
Secretary of Education to purchase loans, and ensures that loan 
purchases will result in no net cost to the federal government 
by including the Secretary of the Treasury and the Director of 
the Office of Management and Budget in the decision making 
process and thereby ensures compliance with the new PAYGO 
rules.

                  SUMMARY OF AMENDMENTS MADE IN ORDER

    (Summaries derived from information provided by sponsors.)
    1. Miller, George (CA): The Manager's amendment makes 
technical and conforming changes; states that loan limit 
increases available under this Act are available only to 
students meeting the requirements of section 484(a) of the HEA; 
targets the loan limit increases to those students and families 
in most need; in regard to school-wide lender-of-last-resort 
eligibility, specifies that the Secretary of Education shall 
determine whether a school qualifies and provides criteria for 
the Secretary to consider in making the determination; 
specifies that funds received by lenders from loan sales be 
used to originate new loans; clarifies that the Secretary has 
the authority to enter into forward commitments to purchase new 
loans; and clarifies that, at the discretion of the Secretary, 
a loan purchased by the Secretary may continue to be serviced 
by the current lender. (10 minutes)
    2. Petri (WI): The amendment requires the Secretary of 
Education to review and revise as necessary the regulations 
concerning prohibited guaranty agency inducements to eligible 
lenders. (10 minutes)
    3. Castle (DE)/Welch (VT): The amendment requires the 
General Accountability Office to conduct a study of the impact 
of raising loan limits on (1) tuition, fees, and room and board 
at institutions of higher education; and (2) private loan 
borrowing for attendance at institutions of higher education. 
(10 minutes)
    4. Castor (FL): The amendment temporarily classifies 
medical bill payment delinquencies of up to 180 days an 
extenuating circumstance which shall not interfere with 
parents' ability to receive PLUS loans for their children's 
tuition. (10 minutes)

         PART A--TEXT OF AMENDMENT TO BE CONSIDERED AS ADOPTED

  In section 459A of the Higher Education Act of 1965, as added 
by section 7 of the bill, strike subsection (a) and insert the 
following:

  ``(a) Authority To Purchase.--
          ``(1) Authority; determination required.--Upon a 
        determination by the Secretary that there is an 
        inadequate availability of loan capital to meet the 
        demand for loans under sections 428, 428B, or 428H, 
        whether as a result of inadequate liquidity for such 
        loans or for other reasons, the Secretary, in 
        consultation with the Secretary of the Treasury, is 
        authorized to purchase from any eligible lender, as 
        defined by section 435(d)(1), loans originated under 
        sections 428, 428B, or 428H on or after October 1, 
        2003, on such terms as the Secretary, the Secretary of 
        the Treasury, and the Director of the Office of 
        Management and Budget jointly determine are in the best 
        interest of the United States, except that any purchase 
        under this section shall not result in any net cost to 
        the Federal Government, as determined jointly by the 
        Secretary, the Secretary of the Treasury, and the 
        Director of the Office of Management and Budget.
          ``(2) Regulations required.--The Secretary, the 
        Secretary of the Treasury, and the Director of the 
        Office of Management and Budget shall jointly 
        promulgate emergency regulations and publish such 
        emergency regulations promptly in the Federal Register 
        concerning the purchases authorized by paragraph (1).
          ``(3) Methodology and factors; justification 
        required.--Such regulations shall outline the 
        methodology and factors that the Secretary, the 
        Secretary of the Treasury, and the Director of the 
        Office of Management and Budget shall consider in 
        evaluating the price at which to purchase loans under 
        sections 428, 428B, or 428H, and shall include a 
        justification of how the use of such methodology and 
        consideration of such factors used to determine 
        purchase price will ensure that loan purchases do not 
        result in any net cost to the Federal Government.

                PART B--TEXT OF AMENDMENTS MADE IN ORDER


   1. An Amendment To Be Offered by Representative George Miller of 
         California, or His Designee, Debatable for 10 Minutes

  In section 2 of the bill--
          (1) redesignate subsection (b) as subsection (c); and
          (2) after subsection (a) insert the following new 
        subsection:
  (b) Student Eligibility.--Loan limit increases authorized by 
the amendments made by this section shall be available only to 
students who meet the requirements of section 484(a) of the 
Higher Education Act of 1965 (20 U.S.C. 1091(a)).
  In section 428H(d) of the Higher Education Act of 1965, as 
amended by section 2(a) of the bill--
          (1) in clause (i) of paragraph (2)(A), strike 
        ``$14,000'' and insert ``$12,000''; and
          (2) in subclause (II) of paragraph (4)(A)(i), strike 
        ``clause (i)'' and insert ``subclause (I)''.

  In section 3 of the bill--
          (1) in subsection (a), insert ``of the Higher 
        Education Act of 1965'' after ``428B(d)''; and
          (2) in subsection (b), insert ``of such Act'' after 
        ``428(b)(7)(C)''.

  In section 4 of the bill, insert ``of the Higher Education 
Act of 1965 (20 U.S.C. 1078-2(a)(3))'' after ``428B(a)(3)''.

  In section 428B(a)(3) of the Higher Education Act of 1965, as 
amended by section 4 of the bill, strike subparagraph (B) and 
insert the following:

                  ``(B)(i) Extenuating circumstances.--For 
                loans made on or after July 1, 2008, and before 
                July 1, 2009, a lender may determine that 
                extenuating circumstances exist under the 
                regulations promulgated pursuant to paragraph 
                (1)(A) if an applicant for a loan under this 
                section is delinquent for 180 days or less on 
                their home mortgage payments and is not more 
                than 89 days delinquent on the repayment of any 
                other debt.
                  ``(ii) Master calendar inapplicable.--Section 
                482 shall not apply to determinations made 
                under clause (i).''.

  In section 5(a) of the bill--
          (1) in paragraph (1), strike ``students and parents'' 
        and insert ``eligible students and parents'';
          (2) in paragraph (3)(A), strike the comma after 
        ``paragraph (4)''; and
          (3) in paragraph (4), strike paragraph (4) of section 
        428(j) of the Higher Education Act of 1965 added by 
        such paragraph of the bill and insert the following:
          ``(4) Institution-wide student qualification.--Upon 
        the request of an institution of higher education and 
        pursuant to standards developed by the Secretary, the 
        Secretary shall designate such institution for 
        participation in the lender-of-last-resort program 
        under this paragraph. If the Secretary designates an 
        institution under this paragraph, the guaranty agency 
        designated for the State in which the institution is 
        located shall make loans, in the same manner as such 
        loans are made under paragraph (1), to students and 
        parent borrowers of the designated institution, 
        regardless of whether the students or parent borrowers 
        are otherwise unable to obtain loans under this part 
        (other than a consolidation loan under section 428C).
          ``(5) Standards developed by the secretary.--In 
        developing standards with respect to paragraph (4), the 
        Secretary may require--
                  ``(A) an institution of higher education to 
                demonstrate that, despite due diligence on the 
                part of the institution, the institution has 
                been unable to secure the commitment of lenders 
                willing to make loans to a significant number 
                of students attending the institution;
                  ``(B) that, prior to making a request under 
                such paragraph for designation for 
                participation in the lender-of-last-resort 
                program, an institution of higher education 
                shall demonstrate that the institution has met 
                a minimum threshold, as determined by the 
                Secretary, for the number or percentage of 
                students at such institution who have received 
                rejections from eligible lenders for loans 
                under this part; and
                  ``(C) any other standards and guidelines the 
                Secretary determines to be appropriate.''.

  In section 459A of the Higher Education Act of 1965, as added 
by section 7 of the bill--
          (1) in subsection (a)(1), insert ``, or enter into 
        forward commitments to purchase,'' after ``is 
        authorized to purchase'';
          (2) in subsection (b)--
                  (A) strike ``shall be used'' and all that 
                follows through the period and insert the 
                following: ``shall be used (1) to ensure 
                continued participation of such lender in the 
                Federal student loan programs authorized under 
                part B of this title, and (2) to originate new 
                Federal loans to students, as authorized under 
                part B of this title.'';
          (3) redesignate subsection (c) as subsection (d); and
          (4) after subsection (b), insert the following new 
        subsection:
  ``(c) Maintaining Servicing Arrangements.--The Secretary may, 
if agreed upon by an eligible lender selling loans under this 
section, contract with such lender for the servicing of the 
loans purchased, provided that--
          ``(1) the cost of such servicing arrangement does not 
        exceed the cost the Federal Government would otherwise 
        incur for the servicing of loans purchased, as 
        determined under subsection (a); and
          ``(2) such servicing arrangement is in the best 
        interest of the borrowers whose loans are purchased.
                              ----------                              


2. An Amendment To Be Offered by Representative Petri of Wisconsin, or 
                 His Designee, Debatable for 10 Minutes

  At the end of section 5 of the bill, add the following new 
subsection:
  (c) Review of Inducements Limitations.--Within 90 days after 
the date of enactment of this Act, the Secretary of Education 
shall review, and as necessary revise, the Department of 
Education's regulations concerning prohibited guaranty agency 
inducements to eligible lenders (34 CFR 682.401(a)) to ensure 
that such agency's do not engage in improper inducements in the 
expansion of operations of the lender-of-last-resort program as 
authorized by the amendments made by this section. The 
Secretary shall submit a report on the review and revision 
required by this subsection to the Committee on Education and 
Labor of the House of Representatives and the Committee on 
Health, Education, Labor, and Pensions of the Senate within 180 
days after such date of enactment.
                              ----------                              


3. An Amendment To Be Offered by Representative Castle of Delaware, or 
                 His Designee, Debatable for 10 Minutes

  At the end of the bill, add the following new section:

SEC. 9. GAO STUDY ON IMPACT OF INCREASED LOAN LIMITS.

  (a) Study Required.--The Comptroller General shall conduct a 
study to evaluate the impact of the increase in Federal loan 
limits provided for in section 2 of this Act and section 8005 
of the Deficit Reduction Act of 2005 with respect to the impact 
on--
          (1) tuition, fees, and room and board at institutions 
        of higher education; and
          (2) private loan borrowing by students and parents 
        for attendance at institutions of higher education.
  (b) Study Components.--The study required under subsection 
(a) shall be conducted for each major sector of institutions of 
higher education over a 5-year time period. The report shall 
specifically analyze the following:
          (1) Whether, on average, tuition, fees, and room and 
        board increase, decrease, or remain unchanged in each 
        such sector after the increases in Federal loan limits 
        take effect.
          (2) Whether the amount of private educational loans 
        taken out by students (and their parents) at 
        institutions in each such sector to pay tuition, fees, 
        and room and board increase, decrease, or remain 
        unchanged.
  (c) Report.--Not later than one year after the date of 
enactment of this Act, the Comptroller General shall provide an 
interim report to the Committee on Education and Labor of the 
House of Representatives and the Committee on Health, 
Education, Labor, and Pensions of the Senate including the 
initial results of the study conducted under this section. The 
Comptroller General shall follow up with such Committees after 
the third year and the fifth year after such date of enactment.
                              ----------                              


 4. An Amendment To Be Offered by Representative Castor of Florida, or 
                 Her Designee, Debatable for 10 Minutes

  In section 428B(a)(3)(B) of the Higher Education Act of 1965, 
as amended by section 4 of the bill, insert ``or on medical 
bill payments'' after ``home mortgage payments''.

                                  
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