H.R. 1425House109th Congress (2005-2007)In Committee

Student Aid Reward Act of 2005

Introduced March 17, 2005

Legislative Activity

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2 earlier actions
HouseCommittee Latest Action

Referred to the Subcommittee on 21st Century Competitiveness.

April 18, 2005

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HouseIntro Referral

Introduced in House

March 17, 2005

HouseIntro Referral

Referred to the House Committee on Education and the Workforce.

March 17, 2005

HouseCommittee

Referred to the Subcommittee on 21st Century Competitiveness.

April 18, 2005

Floor Debate

22 members

What members said about H.R. 1425 on the floor

12 Republicans10 Democrats
Doris O. Matsui
Rep. Doris O. MatsuiD-CA-5 · Mar 30, 2006

Mr. Speaker, I yield myself such time as I may consume. (Ms. MATSUI asked and was given permission to revise and extend her remarks.) Mr. Speaker, I thank the gentleman from Utah for yielding me this…

Howard P. "Buck" McKeon
Rep. Howard P. "Buck" McKeonR-CA-25 · Mar 29, 2006

Mr. Chairman, I yield myself such time as I may consume. I rise in support of this bill to reform, reauthorize and strengthen programs under the Higher Education Act. I want to thank my former…

Ron Kind
Rep. Ron KindD-WI-3 · Mar 29, 2006

Mr. Chairman, I thank the gentleman for yielding me this time. Mr. Chairman, I reluctantly rise in opposition of the bill, not because I do not appreciate the hard work that has gone on in committee…

Rob Bishop
Rep. Rob BishopR-UT-1 · Mar 30, 2006

Mr. Speaker, by direction of the Committee on Rules, I call up House Resolution 742 and ask for its immediate consideration. Mr. Speaker, for the purpose of debate only, I yield the customary 30…

George Miller
Rep. George MillerD-CA-7 · Mar 29, 2006

Mr. Chairman, I yield 5 minutes to the gentleman from Michigan (Mr. Kildee). Mr. Chairman, I yield myself 1 minute. The gentleman tells an interesting story on Pell Grants, but the problem is the…

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Charles W. Boustany, Jr.
Rep. Charles W. Boustany, Jr.R-LA-7 · Mar 29, 2006

Mr. Chairman, I rise in strong support of H.R. 609, and I want to congratulate Majority Leader Boehner and Chairman McKeon for bringing this important legislation to the floor. H.R. 609 is critical…

Ric Keller
Rep. Ric KellerR-FL-8 · Mar 29, 2006

Mr. Chairman, I thank the chairman for yielding me time. Mr. Chairman, I rise to proudly support H.R. 609, the College Access and Opportunity Act, which reauthorizes the Higher Education Act. Don't…

Rush Holt
Rep. Rush HoltD-NJ-12 · Mar 29, 2006

Mr. Chairman, I ask to claim time in opposition. No, Mr. Chairman. Mr. Chairman, indeed I am not opposing this amendment. In fact, I am joining the gentlewoman in this amendment and working with her,…

Robert E. Andrews
Rep. Robert E. AndrewsD-NJ-1 · Mar 29, 2006

Mr. Chairman, I claim the time in opposition to the amendment. Mr. Chairman, I rise to claim the time in opposition, although I am obviously in favor of the amendment. I want to thank the chairman…

Thomas E. Petri
Rep. Thomas E. PetriR-WI-6 · Mar 29, 2006

Mr. Chairman, I want to express my disappointment that the rule to H.R. 609 does not allow my colleagues the opportunity to consider the Student Aid Reward Amendment that I sought to offer with…

Michael N. Castle
Rep. Michael N. CastleR-DE · Mar 29, 2006

To Chairman McKeon, congratulations on rising to the top of this very significant committee. I would also like to express my accolades to Sally Lovejoy, who has had occasion to straighten me out,…

Vernon J. Ehlers
Rep. Vernon J. EhlersR-MI-3 · Mar 29, 2006

Thank you, Mr. Chairman, and I thank the chairman for yielding me time. I rise in support of H.R. 609, the College Access and Opportunity Act. I thank Majority Mr. Leader Boehner and Chairman McKeon…

Chris Van Hollen
Rep. Chris Van HollenD-MD-8 · Mar 29, 2006

Mr. Chairman, I, too, want to thank the chairman of the committee and the ranking member and the chairman and ranking member of the subcommittee for their work on this important issue. However, I,…

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Pete Sessions
Rep. Pete SessionsR-TX-32 · Mar 29, 2006

Madam Chairman, I offer an amendment. Madam Chairman, I would like to, before I really begin my remarks, thank the gentleman, the chairman of the committee and his staff who have been very helpful…

Melissa A. Hart
Rep. Melissa A. HartR-PA-4 · Mar 29, 2006

Madam Chairman, I offer an amendment. Madam Chairman, I yield myself such time as I may consume. I rise in support of the amendment and ask that my colleagues support it as well, because this…

Ric Keller
Rep. Ric KellerR-FL-8 · Mar 30, 2006

I thank the gentleman for yielding. The Higher Education Act that will be reauthorized today by this House is a good bill because it strengthens the Pell Grant program, it expands Perkins loans, and…

Frank R. Wolf
Rep. Frank R. WolfR-VA-10 · Mar 29, 2006

Mr. Chairman, I rise today in support of H.R. 609, the College Access and Opportunity Act. This bill recognizes the unprecedented challenges that America is facing from countries like China and India…

George Miller
Rep. George MillerD-CA-7 · Mar 30, 2006

I thank the gentlewoman for yielding. Mr. Speaker and Members of the House, later today this House will have an opportunity to reverse one of the more egregious things that we have done, or those who…

Betty McCollum
Rep. Betty McCollumD-MN-4 · Mar 30, 2006

Mr. Speaker, it is with great disappointment today that I rise to voice my opposition to the rule and the underlying bill. Higher education has become more important than ever in ensuring America's…

Danny K. Davis
Rep. Danny K. DavisD-IL-7 · Mar 30, 2006

Mr. Speaker, I want to thank the gentlewoman from California for yielding. Mr. Speaker, I rise in strong opposition to the rule and in strong opposition to H.R. 609, the underlying bill. As a matter…

Mark E. Souder
Rep. Mark E. SouderR-IN-3 · Mar 29, 2006

Mr. Chairman, the last speaker, I realize he is not on the Education Committee, but stated an appalling misrepresentation of what has happened on two different fronts. First off, as he probably…

Louie Gohmert
Rep. Louie GohmertR-TX-1 · Mar 30, 2006

Mr. Speaker, I want to thank my colleague for the time. I had concerns about this bill as well. As Republicans, we are not in favor of increasing government but decreasing the amount of restrictions…

Henry Cuellar
Rep. Henry CuellarD-TX-28 · Mar 29, 2006

Mr. Chairman, I offer an amendment. Mr. Chairman, I yield myself such time as I may consume. First of all, I want to thank Mr. Keller and Mr. Miller for the work they have been doing on this…

Dale E. Kildee
Rep. Dale E. KildeeD-MI-5 · Mar 29, 2006

Mr. Chairman, after a highly contentious debate over a $12 billion raid on student aid, I was hoping to build some bridges and work together with the rest of the higher education reauthorization.…

Bill Text

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Introduced in HouseIssued March 17, 2005

I

109th CONGRESS

1st Session

H. R. 1425

IN THE HOUSE OF REPRESENTATIVES

March 17, 2005

Mr. Petri (for himself, Mr. George Miller of California, Mr. Doggett, Mr. Brown of Ohio, Mr. Sanders, Mr. Bishop of New York, Mr. Filner, Mr. McDermott, Ms. Kilpatrick of Michigan, Ms. Lee, Mr. Grijalva, Mr. Hinchey, Mr. Kucinich, Mr. Wu, Mr. Van Hollen, Ms. Watson, Mr. Etheridge, Ms. Moore of Wisconsin, Mr. Cummings, Ms. McCollum of Minnesota, Mr. Israel, Mrs. Jones of Ohio, Ms. Bordallo, Mr. Crowley, Ms. Schakowsky, Mr. Hastings of Florida, Mr. Tierney, Mr. Kildee, Mr. Brown of South Carolina, Ms. Pelosi, and Mr. Alexander) introduced the following bill; which was referred to the Committee on Education and the Workforce

A BILL

To ensure that the Federal student loans are delivered as efficiently as possible, so that there is more grant aid for students.

1.

Short title

This Act may be cited as the Student Aid Reward Act of 2005.

2.

Student Aid Reward Program

Part G of title IV of the Higher Education Act of 1965 is amended by inserting after section 489 (20 U.S.C. 1096) the end the following:

489A.

Student Aid Reward Program

(a)

Program authorized

The Secretary shall carry out a Student Aid Reward Program to encourage institutions of higher education to participate in the student loan program under this title that is most cost-effective for taxpayers.

(b)

Program requirements

In carrying out the Student Aid Reward Program, the Secretary shall—

(1)

provide to each institution of higher education participating in the student loan program under this title that is most cost-effective for taxpayers a Student Aid Reward Payment, in an amount determined in accordance with subsection (c), to encourage the institution to participate in that student loan program;

(2)

require each institution of higher education receiving a payment under this section to provide student loans under that student loan program for a period of 5 years from the date the payment is made;

(3)

where appropriate, require that funds paid to institutions of higher education under this section be used to award students a supplement to such students’ Pell Grants under subpart 1 of part A;

(4)

permit such funds to also be used to award lower and middle income graduate students need-based grants; and

(5)

encourage all institutions of higher education to participate in the Student Aid Reward Program.

(c)

Amount

The amount of a Student Aid Reward Payment under this section shall be not less than 50 percent of the savings to the Federal Government generated by the institution’s participation in the student loan program under this title that is most cost-effective for taxpayers instead of the institution’s participation in the student loan program not cost-effective for taxpayers.

(d)

Trigger to ensure cost neutrality

(1)

Limit to ensure cost neutrality

Notwithstanding subsection (c), the Secretary shall not distribute Student Aid Reward Payments under the Student Aid Reward Program that, in the aggregate, exceed the Federal savings resulting from implementation of the Student Aid Reward Program.

(2)

Federal savings

In calculating Federal savings, as used in paragraph (1), the Secretary shall determine Federal savings on loans made to students at institutions of higher education that participate the student loan program under this title that is most cost-effective for taxpayers and that, on the date of enactment of the Student Aid Reward Program, participated in the student loan program that is not the most cost-effective for taxpayers, resulting from the difference of—

(A)

the Federal cost of loan volume made under the student loan program under this title that is most cost-effective for taxpayers; and

(B)

the Federal cost of an equivalent type and amount of loan volume made, insured, or guaranteed under the student loan program under this title that is not the most cost-effective for taxpayers.

(3)

Distribution rules

If the Federal savings determined under paragraph (2) is not sufficient to distribute full Student Aid Reward Payments under the Student Aid Reward Program, the Secretary shall—

(A)

first make Student Aid Reward Payments to those institutions of higher education that participated in the student loan program under this title that is not the most cost-effective for taxpayers on the date of enactment of the Student Aid Reward Program; and

(B)

with any remaining Federal savings after making Payments under subparagraph (A), make Student Aid Reward Payments to the institutions of higher education not described in subparagraph (A) on a pro-rata basis.

(4)

Distribution to students

Any institution of higher education that receives a Student Aid Reward Payment under this section—

(A)

shall distribute, where appropriate, part or all of such payment among the students of such institution who are Pell Grant recipients by awarding such students a supplemental grant; and

(B)

may distribute part of such payment as a supplemental grant to graduate students in financial need.

(5)

Estimates, adjustments, and carry over

(A)

Estimates and adjustments

The Secretary may make Student Aid Reward Payments to institutions of higher education on the basis of estimates, using the best data available at the beginning of an academic/fiscal year. If the Secretary determines thereafter that loan program costs for that academic/fiscal year were different than such estimate, the Secretary shall adjust (reduce or increase) subsequent Student Aid Reward Payments rewards paid to such institutions of higher education to reflect such difference.

(B)

Carry over

Any institution of higher education that receives a reduced Student Aid Reward Payment under paragraph (3)(B), shall remain eligible for the unpaid portion of such institution’s financial reward payment, as well as any additional financial reward payments for which the institution is otherwise eligible, in subsequent academic or fiscal years.

(e)

Definition

For purposes of this section—

(1)

the student loan program under this title that is most cost-effective for taxpayers is the loan program under part B or D of this title that has the lowest overall cost to the Federal Government (including administrative costs) for the loans authorized by such parts; and

(2)

the student loan program under this title that is not most cost-effective for taxpayers is the loan program under part B or D of this title that does not have the lowest overall cost to the Federal Government (including administrative costs) for the loans authorized by such parts.

.