H.R.1425 - Student Aid Reward Act of 2005109th Congress (2005-2006)
|Sponsor:||Rep. Petri, Thomas E. [R-WI-6] (Introduced 03/17/2005)|
|Committees:||House - Education and the Workforce|
|Latest Action:||House - 04/18/2005 Referred to the Subcommittee on 21st Century Competitiveness. (All Actions)|
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Summary: H.R.1425 — 109th Congress (2005-2006)All Information (Except Text)
Introduced in House (03/17/2005)
Student Aid Reward Act of 2005 - Amends the Higher Education Act of 1965 (HEA) title IV (Student Assistance) to direct the Secretary of Education to carry out a Student Aid Reward (SAR) Program of payments to institutions of higher education (IHEs) to encourage them to participate in the student loan program under title IV that is most cost-effective for taxpayers.
Requires that a SAR payment to an IHE equal at least 50 percent of the savings to the Federal Government generated by the IHE's participation in the most cost-effective student loan program, rather than one not cost-effective for taxpayers.
Requires IHEs receiving SAR payments to: (1) provide student loans under that most cost-effective program for five years after the payment date; and (2) use payment funds, where appropriate, to supplement students Pell Grants. Allows such funds to be used also to award need-based grants to lower and middle income graduate students.