State Loan Access and Student Protection Act - Amends title IV (Student Assistance) of the Higher Education Act of 1965 to exempt certain state education loans from the requirement that when an institution of higher education (IHE) recommends, promotes, or endorses such loans, there need to be at least two unaffiliated lenders of those loans on the school's preferred lender list.
Conditions that exemption on the IHE:
[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3371 Introduced in House (IH)]
113th CONGRESS
1st Session
H. R. 3371
To exempt certain education loans made by States from certain preferred
lender requirements under the Higher Education Act of 1965.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
October 29, 2013
Mr. Hinojosa (for himself and Mr. Castro of Texas) introduced the
following bill; which was referred to the Committee on Education and
the Workforce
_______________________________________________________________________
A BILL
To exempt certain education loans made by States from certain preferred
lender requirements under the Higher Education Act of 1965.
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 ``State Loan Access and Student
Protection Act''.
SEC. 2. EXCEPTION FOR CERTAIN EDUCATION LOANS MADE BY STATES.
Section 487(h) of the Higher Education Act of 1965 (20 U.S.C.
1094(h)) is amended--
(1) in paragraph (1)(B)--
(A) in clause (i), by striking ``and'' at the end;
(B) by inserting ``and'' at the end of clause (ii);
and
(C) by inserting after clause (ii), the following:
``(iii) in the case of education loans made
by a State (and whose terms and conditions are
established by the State), which are
recommended, promoted, or endorsed by the
institution, and that do not meet the
requirement of clause (i) with respect to
having not less than two lenders of such loans
who are not affiliates of each other included
on the preferred lender list--
``(I) the institution's only
actions to recommend, promote, or
endorse such loans are--
``(aa) informing students
and the families of such
students about such loans; and
``(bb) providing financial
aid packages that include such
loans to students who have
previously been awarded such
loans;
``(II) the terms and conditions of
such loans (including interest rates,
fees, available repayment and
forgiveness options, and such other
information as the Secretary determines
necessary) are--
``(aa) using the form
developed by the Secretary
under paragraph (3), disclosed
to the borrower and compared to
the terms and conditions of a
loan made under part D; and
``(bb) at least as
favorable to borrowers as the
terms and conditions of a loan
under made under part D, as
determined in accordance with
such criteria as may be
established by the Secretary;
and
``(III) the institution prominently
discloses to borrowers the methods and
criteria used by the institution to
select such loans for the
recommendation, promotion, or
endorsement described in clause (I).'';
and
(2) by adding at the end the following:
``(3) Comparison form.--Not later than 6 months after the
date of the enactment of the State Loan Access and Student
Protection Act, the Secretary shall develop a form for the
purposes of the disclosure and comparison required under
paragraph (1)(B)(iii)(II)(aa).
``(4) Rule of construction.--Nothing in this subsection
shall be construed to require an institution to carry out the
actions described in items (aa) and (bb) of paragraph
(1)(B)(iii)(I).''.
SEC. 3. INAPPLICABILITY OF TITLE IV NEGOTIATED RULEMAKING REQUIREMENT
AND MASTER CALENDAR EXCEPTION.
Sections 482(c) and 492 of the Higher Education Act of 1965 (20
U.S.C. 1089(c), 1098a) shall not apply to the amendments made by
section 2, or to any regulations promulgated under those amendments.
SEC. 4. EFFECTIVE DATE.
The amendments made by section 2(1) shall be effective with respect
to academic year 2014-2015 and each succeeding academic year.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Education and the Workforce.
Referred to the Subcommittee on Higher Education and Workforce Training.
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