legislation: 96-s-1870
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| 96-s-1870 | 96 | s | 1870 | Guaranteed Student Loan Improvement Act of 1979 | Education | 1979-10-09 | 1979-10-09 | Referred to Senate Committee on Labor and Human Resources. | Senate | Sen. Williams, Harrison A., Jr. [D-NJ] | NJ | D | W000502 | 0 | Guaranteed Student Loan Improvement Act of 1979 - Amends the Higher Education Act of 1965 to extend the federally insured student loan program to students enrolled for not less than two nor more than six credit hours of courses required for a degree or certificate. Allows repayment to be deferred: (1) for each consecutive year such study is continued, not to exceed a maximum deferred period of four years and nine months; or (2) beyond such period only if the student is enrolled half-time or more, not to exceed a maximum of eight years and nine months from the beginning of study. Limits such loans to $1,500 per academic year and $6,000 in the aggregate for the insured unpaid principal amount of the loan. Extends the national direct student loan program to such less than half-time students, with the same $1,500 yearly and $6,000 aggregate limits on such loans. Authorizes eligible institutions, in their discretion, to make loans to such students from not more than ten percent of the funds available for direct student loans at such institutions. Extends the Federal student loan insurance program through fiscal year 1986 for new student loans and through fiscal year 1990 for loans to enable students with prior insured loans to continue or complete their education. Sets a $3,000 limit on the total of loans made to an independent undergraduate student in any academic year which may be covered by Federal loan insurance. Raises the limitations on aggregate unpaid principal amounts for all such insured loans to $12,500 (from $7,500) for non-independent undergraduate students, to $15,000 for independent undergraduate students, and to $25,000 (from $15,000) for graduate or professional students. Makes similar changes in limitations on State and nonprofit institution loan insurance programs which receive Federal payments to reduce student interest costs or which are reimbursed under Federal loan insurance supplemental guaranty agreements. Authorizes the Commissioner to increase the limits applicable to graduate and professional students pursuing exceptionally expensive programs. Includes among those permitted to defer repayment of principal on Federally insured student loans; officers in the Commissioned Corps of the Public Health Service, full-time disabled or unable to secure employment because of the care required by a temporarily disabled spouse. Permits similar deferments under specified student loan programs insured by States or nonprofit institutions. volunteers with specified tax-exempt organizations, interns, and those temporarily totally Directs the Commissioner to enter into cooperative agreements with credit bureau organizations providing for the exchange of information concerning students borrowers. Requires that such agreements provide that: (1) the Commissioner disclose only accurate and complete information and not disclose that a loan is in default until a reasonable effort has been made to collect the debt; (2) such organizations will be promptly notified, and will promptly record, changes submitted by the Commissioner or objections by the borrower with respect to such information, (3) no unfair, unreasonable, harassing, or misleading collection practices will result; and (4) the Commissioner will notify the borrower that such information will only be disclosed after a reasonable period has passed (at least 30 days from the date such notice has been sent) in which such borrower has failed to enter into repayment. Directs the Commissioner to notify promptly any borrower of any such disclosure. Requires that written agreements evidencing federally-insured student loans contain notice of such system of disclosure and provide that the lender on request of the borrower will inform such credit bureaus of the repayment status of the note. Authorizes the Commissioner to provide eligible lenders, and State or nonprofit organizations having specified guaranty agreements, any relevant information from whatever source with respect to borrowers. Permits parents of a dependent undergraduate student to borrow, under the same terms as other guaranteed student loans, up to $3,000 per student per academic year and up to $15,000 as an aggregate insured principal for loans on account of any one student. Prohibits such borrowing to pay for the expenses of more than three students in any academic year. Provides for annual insurable limits, deferments of repayment of principal, and interest rates for such loans. Directs the Secretary to insure such loans in a State only if the State does not do so within a specified period. Prohibits the payment of special allowances on loans made or purchased with funds obtained from specified sources or on loans pledged as security to obtain specified funds. Sets forth the conditions under which special allowances must be paid to specified agencies. Deletes provisions for a Committee on the Process of Determining Student Loan Special Allowances. Redefines student eligibility for federally insured student loans to include maintaining satisfactory progress in the course of study, not owing a refund on previous grants or being in default on specified student loans, and filing a statement that such funds will be used solely for educational purposes. Directs the Commissioner to make payments in specified amounts to State or private nonprofit agencies which have entered into agreements to provide student loan insurance programs and which provide a lender referral service to eligible students. Authorizes appropriations for such payments. Sets forth requirements for the types of security which must be made on warehousing advances made by the Student Loan Marketing Association and for the use of proceeds from such advances. Requires that student loans set aside pursuant to the offering of participations or pooled interests be adequate at all times to ensure timely principal and interest payments on such securities. Includes lenders with less than $100,000,000 (formerly $50,000,000) in deposits among those permitted to condition student loans upon the student or the student's family maintaining a business relationship with the lender. Permits the Board of Directors of the Student Loan Marketing Association to fix from time to time the par value of its shares of common stock. Terminates the requirements that the Secretary prescribe regulations for the maximum number of shares of such stock which may be issued or be outstanding at any one time. Includes nonvoting common stock among such stock for which dividends may be declared. Authorizes the Association to issue nonvoting stock, which shall be freely transferable. Prohibits the Secretary of the Treasury from conditioning approval of issuance of obligations by the Association on such obligations being made or sold to the Federal Financing Bank. Extends through fiscal year 1984 the authority of the Secretary of Health, Education, and Welfare to guarantee payment on such obligations. Requires prompt Government action on Association requests for approvals to issue such obligations. Authorizes the Secretary of the Treasury to purchase such obligations, within specified limits. Authorizes the Association to sell or issue obligations on the security of guaranteed student loans to the Federal Financing Bank. Authorizes the Association to make new insurable loans to specified borrowers to discharge the liability on old student loans. Authorizes the Association to make insurable student loans whenever the Secretary after consulting with representatives of a State determines that a substantial portion of all eligible borrowers in a State or within an area of substantial population within a State are unable to obtain student loans. Stipulates that the Association in making such loans shall not be deemed a creditor for any purposes of the Consumer Credit Protection Act. Declares that the Truth in Lending Act shall not apply to any guaranteed student loans. Authorizes States and nonprofit private institutions or organizations which have specific student loan program agreements with the Commissioner to consolidate multiple loans into a single loan at the student borrower's election and to establish income contingent repayment schedules for such loans. Authorizes appropriations to carry out such purposes. Directs the Commissioner to prescribe regulations for payment to such States or nonprofit entities. Extends the authorization for appropriations for the National Direct Student Loans program through Fiscal year 1985. Changes the dates during which there shall be a capital distribution of the assets from student loan funds to after fiscal year 1984 and not later than March 31, 1985, with provision for distribution of specified excess assets prior to fiscal year 1985. Raises the limit on the aggregate of loans for all years made by an institution of higher education from National Direct Student Loan funds from $10,000 to $12,000 for graduate or professional students, from $5,000 to $6,000 for undergraduates who have completed two years towards the bachelor's degree, and from $2,500 to $3,000 for any other students. Includes among those permitted to defer, for specified periods, repayment of principal of, or interest on, National Direct Student Loans: officers in the Commissioned Corps of the Public Health Service, full-time volunteers with specified tax-exempt organizations, interns, and those temporarily totally disabled or unable to secure employment because of the care required by a temporarily disabled spouse. Requires that agreements with institutions for Federal contributions to National Direct Student Loan Funds provide that the Commissioner will provide to such institutions any relevant information, from whatever service, on borrowers. Directs the Commissioner to enter into cooperative agreements with credit bureau organizations to exchange information concerning student borrowers in default for specified periods. Requires that student loan agreements contain notice of such system of information disclosure. Removes the limitation on the aggregate of the amount of specified Federal capital contributions paid for any fiscal year to proprietary institutions of higher education. Raises the interest rate on national direct student loans from three percent to seven percent per year. Stipulates that the amount of a national direct student loan and interest on such loan, which has been cancelled for certain public service shall not be considered taxable income. Revises the formulas and procedures by which the administrative expenses of student assistance programs are compensated by the Federal Government. Directs the Secretary (formerly the Commissioner) to administer such compensation. Includes among required information which participating institutions must give to all students: (1) special facilities and services available to handicapped students; and (2) names of entities which accredit, approve or license the institution and its programs. Directs the Secretary (formerly the Commissioner) to make available to eligible institutions descriptions of Federal student assistance programs. Extends the annual authorization of appropriations, for the Student Financial Assistance Training Program through fiscal year 1986. Terminates all authority for such program at the end of fiscal year 1986. Directs the Secretary to publish annually in the Federal Register a proposed schedule of expected family contributions for an academic year for various levels of family income for the purpose of determining a student's need for financial assistance. Directs the Commissioner to provide interested parties an opportunity for comments and recommendations during a 30-day period following such publication. Requires such schedule to be submitted to Congress and, if either House of Congress adopts a resolution of disapproval, directs the Commissioner to publish a new schedule. Directs the Commissioner to promulgate regulations concerning the determination of such expected family contribution, as well as special regulations for determining the expected family contribution and effective family income of an independent student, in accordance with specified basic criteria, including a standard for determining if a married student is dependent of parents. Authorizes the Secretary to prescribe regulations necessary to carry out such title, including regulations for the limitation, suspension or termination of the eligibility for any student assistance program of any otherwise eligible institution upon determination, after reasonable notice and opportunity for hearing on the record, that such institution has violated or failed to carry out specified provisions, agreements or regulations. Limits such periods of suspension to sixty days, with specified exceptions. Directs the Secretary to prescribe a single application form for determining a student's need and eligibility for financial assistance under such title. Establishes, as an independent agency within the executive branch, a National Commission on Student Financial Assistance. Directs the Commission to make a report and recommendations to the President and the Congress on specified issues relating to the financing of student loans. Authorizes the Commission to accept grants, gifts, or bequests. Authorizes appropriations to carry out the work of the Commission. | 2025-09-02T13:56:27Z |