Higher Education Opportunity Through Pell Grant Expansion Act - Expresses the sense of the Senate that: (1) eligible undergraduate students should receive the maximum Federal Pell Grant amount established by this Act's amendment to the Higher Education Act of 1965 (HEA); and (2) sufficient funds should be appropriated to allow the awarding of such amount.
Authorizes and makes additional appropriations in a specified amount for FY 2006 to carry out HEA provisions for Federal Pell Grants.
Amends HEA to revise the maximum amount of a Federal Pell Grant to $5,100 for academic year 2005-2006.
Directs the Secretary of Education to adjust such maximum amount cumulatively every two academic years to account for any percentage increase in the Consumer Price Index for All Urban Consumers published by the Bureau of Labor Statistics of the Department of Labor.
Prohibits the application of the annual updates (published in the Federal Register on December 23, 2004) to the allowance for State and other taxes in the tables used in the Federal Needs Analysis Methodology to determine a student's expected family contribution for the award year 2005-2006, to the extent such updates will reduce the amount of Federal student assistance for which the student is eligible.
Terminates special allowance payments for lenders or holders of student loans: (1) made or purchased after enactment of this Act; (2) not qualified for such payments before such enactment; or (3) made or purchased before such enactment, but having retired or defeased obligations after such enactment, or having a maturity or retirement date extended after such enactment.
Requires windfall profit offset payments from eligible lenders of student loans.
[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 697 Introduced in Senate (IS)]
109th CONGRESS
1st Session
S. 697
To amend the Higher Education Act of 1965 to improve higher education,
and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
April 5, 2005
Mr. Obama (for himself and Mr. Inouye) introduced the following bill;
which was read twice and referred to the Committee on Health,
Education, Labor, and Pensions
_______________________________________________________________________
A BILL
To amend the Higher Education Act of 1965 to improve higher education,
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 ``Higher Education Opportunity Through
Pell Grant Expansion Act''.
SEC. 2. SENSE OF THE SENATE.
(a) Findings.--The Senate makes the following findings:
(1) Federal Pell Grants are need-based and are used by
5,300,000 undergraduate students to fund their college
educations.
(2) Over 90 percent of Federal Pell Grant recipients come
from a family with a combined income of less than $40,000.
(3) Because of the rising cost of college tuition, the
maximum Federal Pell Grant amount of $4,050 for academic year
2004-2005 is $700 less in real terms than the maximum Federal
Pell Grant amount for academic year 1975-1976.
(4) Federal Pell Grants for academic year 2003-2004 cover
only 23 percent of the total cost of the average 4-year public
college.
(b) Sense of the Senate.--It is the sense of the Senate that--
(1) eligible undergraduate students should receive the
maximum Federal Pell Grant amount established by the amendment
made by section 3(b) of this Act; and
(2) sufficient funds should be appropriated to allow the
awarding of the maximum Federal Pell Grant amount for which
students are eligible pursuant to the amendment made by section
3(b) of this Act.
SEC. 3. FEDERAL PELL GRANTS.
(a) Appropriation of Funds for Federal Pell Grants.--In addition to
any amounts otherwise appropriated to carry out subpart 1 of part A of
title IV of the Higher Education Act of 1965 (20 U.S.C. 1070a) for the
fiscal year ending September 30, 2006, there are authorized to be
appropriated and there are appropriated, out of any money in the
Treasury not otherwise appropriated for the fiscal year ending
September 30, 2006, for carrying out such subpart 1, an additional
$2,000,000,000.
(b) Authorization Amount and Maximum Federal Pell Grant.--Section
401(b)(2)(A) of the Higher Education Act of 1965 (20 U.S.C.
1070a(b)(2)(A)) is amended to read as follows:
``(2)(A)(i) The amount of a Federal Pell Grant for a student
eligible under this part shall be $5,100 for academic year 2005-2006,
less an amount equal to the amount determined to be the expected family
contribution with respect to that student for that year.
``(ii) The Secretary shall cumulatively adjust the amount in clause
(i) every 2 academic years beginning with academic year 2006-2007 to
account for any percentage increase in the Consumer Price Index for All
Urban Consumers published by the Bureau of Labor Statistics of the
Department of Labor.''.
SEC. 4. ALLOWANCE FOR STATE AND OTHER TAXES.
Notwithstanding any other provision of law, the annual updates to
the allowance for State and other taxes in the tables used in the
Federal Needs Analysis Methodology to determine a student's expected
family contribution for the award year 2005-2006 under part F of title
IV of the Higher Education Act of 1965 (20 U.S.C. 1087kk et seq.),
published in the Federal Register on Thursday, December 23, 2004 (69
Fed. Reg. 76926), shall not apply to a student to the extent the
updates will increase the student's expected family contribution under
such part F.
SEC. 5. 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 striking clause (v) and inserting the
following:
``(v) This subparagraph shall not apply
to--
``(I) any loan made or purchased
after the date of enactment of the
Higher Education Opportunity Through
Pell Grant Expansion Act;
``(II) any loan that had not
qualified before such date of enactment
for receipt of a special allowance
payment determined under this
subparagraph; or
``(III) 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 or
the date of retirement of the
obligation described in the
first such sentence has, after
such date of enactment, been
extended.''.
SEC. 6. WINDFALL PROFIT OFFSET.
Section 438 of the Higher Education Act of 1965 (20 U.S.C. 1087-1)
is further amended by adding at the end the following:
``(g) Windfall Profit Offset.--At the end of every fiscal quarter
for which an eligible lender does not receive a special allowance
payment under this section, the eligible lender shall pay to the
Secretary of the Treasury for deposit into the Treasury as
miscellaneous receipts a windfall profit offset payment for the fiscal
quarter equal to the amount by which--
``(1) the aggregate amount of all payments of interest
received by the eligible lender from borrowers on all loans
made, insured, or guaranteed under this part during the fiscal
quarter; exceeds
``(2) interest guaranteed the lender under this section for
the fiscal quarter, irrespective of the amount received under
subparagraph (A).''.
<all>
Introduced in Senate
Sponsor introductory remarks on measure. (CR S3205)
Read twice and referred to the Committee on Health, Education, Labor, and Pensions. (text of measure as introduced: CR S3205-3206)
Sponsor introductory remarks on measure. (CR S11909)
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