Summary: H.R.3176 — 98th Congress (1983-1984)All Information (Except Text)

There is one summary for H.R.3176. Bill summaries are authored by CRS.

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Introduced in House (05/26/1983)

Income-Dependent Education Assistance Act of 1983 - Title I: System for Making Income-Dependent Education Assistance Loans - Requires the Secretary of Education to establish a program of entering into agreements with guarantee agencies in order to provide funds to postsecondary schools or vocational schools which have entered into agreements under this Act to make loans to students who are eligible for assistance under the Higher Education Act of 1965. Provides that pursuant to such agreements, guarantee agencies shall issue debt obligations approved by the Secretary the proceeds of which shall be allocated among eligible educational institutions. Requires the United States to agree to repay the principal and interest of such debt obligations. Permits guarantee agencies to make loans under this Act for the purpose of discharging liability on federally insured or guaranteed loans under title IV of the Higher Education Act of 1965. Provides that the guarantee agency for eligible educational institutions in any State shall be: (1) the State or nonprofit private institution which has an agreement with the State to provide subsidy payments under the State's student loan insurance program; or (2) the State or nonprofit institution of another State which has such an agreement or the Student Loan Marketing Association if there is no such an agreement under effect in the State.

Provides that in order to qualify for funds under this Act, an educational institution must enter into an agreement with the Secretary to, in addition to meeting other terms prescribed by the Secretary: (1) use such funds exclusively for student loans; (2) comply with information requirements; (3) notify students of their obligations and responsibilities under the loan program; and (4) repay portions of refunds owed to students who withdraw after receiving loans under the loan program. Permits the Secretary to suspend or revoke such an agreement and to recover funds held by an educational institution for noncompliance with this Act or with the terms of the agreement.

Sets forth requirements with respect to loan terms and disbursement of loan proceeds. Establishes information requirements for the loan program.

Title II: Collection of Income-Dependent Education Assistance Loans - Amends the Internal Revenue Code to provide for the collection of loans made under this Act through income taxes. Requires the Secretary of Education to notify borrowers annually with respect to their account balances and the procedure for computing the amount of repayment owing for the taxable year. Requires that such information be submitted to the Secretary of the Treasury. Sets forth requirements with respect to the computation of annual loan repayment amounts, termination of a borrower's repayment obligation, and failure to make repayments.

Establishes in the Treasury the Income-Dependent Education Assistance Loan Trust Fund, which shall be available for repayment of principal and interest on debt obligations issued under this Act and for advancing funds directly to schools for new loans to students. Appropriates to such trust fund amounts received in the Treasury on any loan made under title I of this Act.