S. 754Senate109th Congress (2005-2007)In Committee

Student Aid Reward Act of 2005

Introduced April 11, 2005

Legislative Activity

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SenateIntro Referral Latest Action

Read twice and referred to the Committee on Health, Education, Labor, and Pensions. (text of measure as introduced: CR S3430-3431)

April 11, 2005

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SenateIntro Referral

Introduced in Senate

April 11, 2005

SenateIntro Referral

Read twice and referred to the Committee on Health, Education, Labor, and Pensions. (text of measure as introduced: CR S3430-3431)

April 11, 2005

Floor Debate

13 members

What members said about S. 754 on the floor

4 Republicans9 Democrats
Russell D. Feingold
Sen. Russell D. FeingoldD-WI · Apr 11, 2005

Mr. President, I rise today to introduce the Corps of Engineers Modernization and Improvement Act of 2005. I am pleased to be joined by the senior Senator from Arizona, Mr. McCain, who worked with me…

Robert C. Byrd
Sen. Robert C. ByrdD-WV · Apr 11, 2005

Mr. President, today I am introducing the International Clean Energy Deployment and Global Energy Markets Investment Act of 2005. This is a forward-thinking, made-in-America action plan that can…

Dianne Feinstein
Sen. Dianne FeinsteinD-CA · Apr 11, 2005

Mr. President, I rise today to introduce legislation to authorize the Inland Empire Regional Water Recycling initiative to be part of the U.S. Bureau of Reclamation's Title XVI program. These water…

Craig Thomas
Sen. Craig ThomasR-WY · Apr 11, 2005

President, today I am pleased to join Senator Levin in introducing a bill that will further my efforts to limit unfair government competition with the private sector. Throughout my career in public…

Orrin G. Hatch
Sen. Orrin G. HatchR-UT · Apr 11, 2005

Mr. President, I am pleased to join Senator Inouye in introducing ``The Wakefield Act'', which reauthorizes the Emergency Medical Services for Children (EMSC) program. It has been 20 years since…

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Jon Kyl
Sen. Jon KylR-AZ · Apr 11, 2005

Mr. President, the 108th Congress began the necessary process, as part of the American Jobs Creation Act, of rationalizing the way the United States taxes the foreign income of U.S.-based companies,…

Robert F. Bennett
Sen. Robert F. BennettR-UT · Apr 11, 2005

Mr. President, I rise today to introduce the Lupus-- Research, Education, Awareness, Communication, Health Care--or REACH Amendments of 2005. This bill will strengthen the Nation's research efforts…

Robert F. Bennett
Sen. Robert F. BennettR-UT · Apr 11, 2005

Mr. President, I rise today to introduce the Lupus-- Research, Education, Awareness, Communication, Health Care--or REACH Amendments of 2005. This bill will strengthen the Nation's research efforts…

Carl Levin
Sen. Carl LevinD-MI · Apr 11, 2005

Mr. President, I am pleased to join with Senators Craig Thomas, Chuck Grassley and Debbie Stabenow in introducing the Federal Prison Industries Competition in Contracting Act. Our bill is based on a…

Kent Conrad
Sen. Kent ConradD-ND · Apr 11, 2005

Mr. President, I rise today to support the introduction of the Wakefie1d Act, which will reauthorize the Emergency Medical Services for Children, EMSC, program. This program is the only Federal…

Richard J. Durbin
Sen. Richard J. DurbinD-IL · Apr 11, 2005

Mr. President, I ask unanimous consent that the text of the bill be printed in the Record.

Frank R. Lautenberg
Sen. Frank R. LautenbergD-NJ · Apr 11, 2005

Mr. President, I ask unanimous consent that the text of the bill be printed in the Record.

Edward M. Kennedy
Sen. Edward M. KennedyD-MA · Apr 11, 2005

Mr. President, I ask unanimous consent that the text of the bill be printed in the Record.

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Charles E. Schumer
Sen. Charles E. SchumerD-NY · Apr 11, 2005

Mr. President, I ask unanimous consent that the text of the bill be printed in the Record.

Edward M. Kennedy
Sen. Edward M. KennedyD-MA · Apr 11, 2005

Mr. President, I ask unanimous consent that the text of the bill be printed in the Record.

Bill Text

Latest available legislative text

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Introduced in SenateIssued April 11, 2005

II

109th CONGRESS

1st Session

S. 754

IN THE SENATE OF THE UNITED STATES

April 11, 2005

Mr. Kennedy (for himself, Mr. Smith, and Mr. Durbin) introduced the following bill; which was read twice and referred to the Committee on Health, Education, Labor, and Pensions

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 (20 U.S.C. 1088 et seq.) is amended by inserting after section 489 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 such student loan program for a period of 5 years after the date the first payment is made under this section;

(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’ Federal Pell Grants under subpart 1 of part A;

(4)

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

(5)

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

(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 of higher education’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 that is not most 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 the 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 in 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 Act of 2005, participated in the student loan program that is not 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 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 most cost-effective for taxpayers on the date of enactment of the Student Aid Reward Act of 2005; and

(B)

with any remaining Federal savings after making Student Aid Reward Payments under subparagraph (A), make Student Aid Reward Payments to the institutions of higher education eligible for a Student Aid Reward Payment and 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 Federal 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 shall 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 or fiscal year. If the Secretary determines thereafter that loan program costs for that academic or fiscal year were different than such estimate, the Secretary shall adjust by reducing or increasing 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

In this section:

(1)

Student loan program under this title that is most cost-effective for taxpayers

The term student loan program under this title that is most cost-effective for taxpayers means 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.

(2)

Student loan program under this title that is not most cost-effective for taxpayers

The term student loan program under this title that is not most cost-effective for taxpayers means 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.

.