H.R. 5150 – Reading Mode

109th CONGRESS

2d Session

H. R. 5150

IN THE HOUSE OF REPRESENTATIVES

April 6, 2006

Mr. George Miller of California (for himself, Mr. Kildee, Mr. Tierney, Ms. McCollum of Minnesota, Mr. Grijalva, and Mr. Bishop of New York) introduced the following bill; which was referred to the Committee on Education and the Workforce

A BILL

To amend the Higher Education Act of 1965 to reduce interest rates for student and parent borrowers.

Short title

This Act may be cited as the Reverse the Raid on Student Aid Act of 2006.

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 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.