College Loan Assistance Act of 2003

College Loan Assistance Act of 2003 - Amends the Higher Education Act of 1965 to revise student aid requirements for student loans and Pell Grants.

Allows refinancing of student consolidation loans under the Federal Family Education Loan (FFEL) program. Reduces the amount of a cap on interest rate under the FFEL program.

Extends authority for the Pell Grant program. Increases the maximum amount of an individual Pell Grant award to $7,000 for each of academic years 2004-2005 and 2005-2006.

Prohibits eligible lenders or the Secretary of Education from collecting origination fees from borrowers, under the FFEL or the Federal direct loan program, for any loan made on or after the first July 1 after the date of enactment of the Student Loan Relief Act of 2003 (sic).

[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2505 Introduced in House (IH)]







108th CONGRESS
  1st Session
                                H. R. 2505

  To amend the Higher Education Act of 1965 to permit refinancing of 
 student consolidation loans, increase Pell Grant maximum awards, and 
                          for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 18, 2003

 Ms. DeLauro 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 permit refinancing of 
 student consolidation loans, increase Pell Grant maximum awards, and 
                          for other purposes.

    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 ``College Loan Assistance Act of 
2003''.

SEC. 2. REMOVAL OF PROHIBITION ON REFINANCING CONSOLIDATION LOANS.

    (a) Removal of Prohibition.--Section 428C(a)(3) the Higher 
Education Act of 1965 (20 U.S.C. 1078-3(a)(3)) is amended--
            (1) by striking subparagraph (B);
            (2) in subparagraph (C), by striking ``subparagraphs (A) 
        and (B)'' and inserting ``subparagraph (A)''; and
            (3) by redesignating subparagraph (C) as subparagraph (B).
    (b) Reduction of Cap on Interest Rate.--Section 427A(l)(3) of such 
Act (20 U.S.C. 1077a(l)(3)) is amended by striking subparagraph (B) and 
inserting the following:
                    ``(B) 6.8 percent.''.

SEC. 3. EXTENSION AND INCREASE OF PELL GRANT MAXIMUM AMOUNTS.

    Section 401(b)(2)(A) of the Higher Education Act of 1965 (20 U.S.C. 
1070a(b)(2)(A)) is amended--
            (1) by striking ``and'' at the end of clause (iv);
            (2) by striking the comma at the end of clause (v) and 
        inserting a semicolon; and
            (3) by inserting after clause (v) the following new 
        clauses:
            ``(vi) $7,000 for academic year 2004-2005; and
            ``(vii) $7,000 for academic year 2006-2006,''.

SEC. 4. ELIMINATION OF LOAN FEES TO BORROWERS.

    (a) Federal Family Education Loan Program.--Section 438(c) of the 
Higher Education Act of 1965 (20 U.S.C. 1087-1(c)) is amended by adding 
at the end the following new paragraph:
            ``(9) Origination fees terminated.--Notwithstanding any 
        other provision of this subsection, with respect to any loan 
        made, insured, or guaranteed under this part on or after the 
        first July 1 after the date of enactment of the Student Loan 
        Relief Act of 2003--
                    ``(A) no eligible lender may collect directly or 
                indirectly from any borrower any origination fee with 
                respect to such loan, or any other fee relating to the 
                origination of a loan however described; and
                    ``(B) the Secretary shall not collect any 
                origination fee from the lender under this 
                subsection.''.
    (b) Federal Direct Loan Program.--Section 455(c) of such Act (20 
U.S.C. 1087e(c)) is amended to read as follows:
    ``(c) Loan Fee.--
            ``(1) Temporary provision.--Subject to paragraph (2), the 
        Secretary shall charge the borrower of a loan made under this 
        part an origination fee of 4.0 percent of the principal amount 
        of loan.
            ``(2) Termination of origination fee.--With respect to any 
        loan made under this part on or after the first July 1 after 
        the date of enactment of Student Loan Relief Act of 2003, the 
        Secretary shall not collect directly or indirectly from any 
        borrower any origination fee with respect to such loan, or any 
        other fee relating to the origination of a loan however 
        described.''.
                                 <all>