[DOCID: f:hr590.110]
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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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