Reverse the Raid on Student Aid Act of 2006

Reverse the Raid on Student Aid Act of 2006 - Amends the Higher Education Act of 1965 to cut student loan interest rates to 3.4% for student borrowers and 4.25% for parent borrowers under the Federal Family Education Loan (FFEL) and William D. Ford Direct Loan programs for loans whose first disbursement is made on or after July 1, 2006. Maintains the current 6.8% interest rate, however, for unsubsidized Stafford loans for middle-income borrowers under such programs.

[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5150 Introduced in House (IH)]







109th CONGRESS
  2d Session
                                H. R. 5150

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


_______________________________________________________________________


                    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.

    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 ``Reverse the Raid on Student Aid Act 
of 2006''.

SEC. 2. 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.''
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