Text: H.R.5150 — 109th Congress (2005-2006)All Information (Except Text)

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Introduced in House (04/06/2006)


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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