Emergency Loan Abuse Prevention Act of 2004

Emergency Loan Abuse Prevention Act of 2004 - Amends the Higher Education Act of 1965 to reduce certain special allowance payments to holders of student loans.

Appropriates, for each fiscal year after enactment of this Act, an additional amount to increase the maximum Pell grant for that fiscal year. Makes such amount equal to the amount by which expenditures for such special allowances are reduced by this Act for that fiscal year, as determined by the Congressional Budget Office.

[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5113 Introduced in House (IH)]






108th CONGRESS
  2d Session
                                H. R. 5113

 To prevent abuse of the special allowance subsidies under the Federal 
                     Family Education Loan Program.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 21, 2004

   Mr. Kildee (for himself, Mr. Van Hollen, and Mr. George Miller of 
 California) introduced the following bill; which was referred to the 
                Committee on Education and the Workforce

_______________________________________________________________________

                                 A BILL


 
 To prevent abuse of the special allowance subsidies under the Federal 
                     Family Education Loan Program.

    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 ``Emergency Loan Abuse Prevention Act 
of 2004''.

SEC. 2. TERMINATION OF EXCESSIVE ALLOWANCES.

    Section 438(b)(2)(B) of the Higher Education Act of 1965 (20 U.S.C. 
1087-1(b)(2)(B)) is amended by adding at the end the following new 
clause:
            ``(v) This subparagraph shall not apply to--
                    ``(I) any loan made or purchased after the date of 
                enactment of the Emergency Loan Abuse Prevention Act of 
                2004; or
                    ``(II) any loan made or purchased before such date 
                of enactment with funds described in the first or 
                second sentence of clause (i) if--
                            ``(aa) the obligation described in the 
                        first such sentence has, after such date of 
                        enactment, matured, or been retired or 
                        defeased; or
                            ``(bb) the maturity date, the date of 
                        defeasement, or the date of retirement of the 
                        obligation described in the first such sentence 
                        has, after such date of enactment, been 
                        extended.''.

SEC. 3. EXPENDITURE OF SAVINGS ON INCREASED PELL GRANTS.

    From any amounts in the Treasury not otherwise appropriated, there 
is appropriated for each of the fiscal years beginning after the date 
of enactment of this Act an additional amount for the purposes of 
increasing the maximum Pell grant in each Act providing annual 
appropriations for the Pell grant program under subpart 1 of part A of 
title IV of the Higher Education Act of 1965 (20 U.S.C. 1070a) that is 
equal to the amount that is determined annually by the Congressional 
Budget Office to be the amount by which expenditures under section 438 
of such Act (20 U.S.C. 1087-1) are reduced for such fiscal year by the 
enactment of section 2 of this Act.
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