[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 2861 Introduced in Senate (IS)]
108th CONGRESS
2d Session
S. 2861
To prevent abuse of the special allowance subsidies under the Federal
Family Education Loan Program.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
September 29, 2004
Mrs. Murray (for herself, Mr. Kennedy, Ms. Mikulski, Mr. Durbin, Mr.
Dodd, and Mr. Reed) introduced the following bill; which was read twice
and referred to the Committee on Health, Education, Labor, and Pensions
_______________________________________________________________________
A BILL
To prevent abuse of the special allowance subsidies under the Federal
Family Education Loan Program.
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 ``Student Loan Abuse Prevention Act''.
SEC. 2. TERMINATION OF EXCESSIVE ALLOWANCES.
Section 438(b)(2)(B) of the Higher Education Act of 1965 (20 U.S.C.
1087-1(b)(2)(B)) is amended--
(1) in clause (iv), by inserting ``or refunded on or after
the date of enactment of the Student Loan Abuse Prevention
Act,'' after ``October 1, 1993,''; and
(2) by adding at the end the following new clause:
``(v) Notwithstanding clauses (i) and (ii),
the quarterly rate of the special allowance
shall be the rate determined under subparagraph
(A), (E), (F), (G), (H), or (I) of this
paragraph, or paragraph (4), as the case may
be, for loans--
``(I) originated, transferred, or
purchased on or after the date of
enactment of the Student Loan Abuse
Prevention Act;
``(II) financed by an obligation
that has matured, been retired, or
defeased on or after the date of
enactment of the Student Loan Abuse
Prevention Act;
``(III) refinanced on or after the
date of enactment of the Student Loan
Abuse Prevention Act, with funds
obtained from a source other than funds
described in subclause (II) of this
clause; or
``(IV) sold or transferred to any
other holder on or after the date of
enactment of the Student Loan Abuse
Prevention Act.''.
SEC. 3. EXPENDITURE OF SAVINGS ON INCREASED PELL GRANTS.
From any amounts in the Treasury not otherwise appropriated, there
is appropriated for each of the fiscal years beginning after the date
of enactment of this Act an additional amount for the purposes of
increasing the maximum Pell grant in each Act providing annual
appropriations for the Pell grant program under subpart 1 of part A of
title IV of the Higher Education Act of 1965 (20 U.S.C. 1070a) that is
equal to the amount that is determined annually by the Congressional
Budget Office to be the amount by which expenditures under section 438
of such Act (20 U.S.C. 1087-1) are reduced for such fiscal year by the
enactment of section 2 of this Act.
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