|
Statutory
Authority |
Suggested Amendment |
Rationale |
Proposed Statutory
Language |
| 1 |
HEA Title IV, Sec. 428(b) |
Increase Stafford subsidized loan limits
to at least keep pace with the rate of inflation. |
Loan limits for most students have not increased
since 1992. As the costs of education have increased over
time, students are sometimes forced to borrow from Alternative
Loan Programs at rates higher than Stafford loans. Increasing
the subsidized portion of their portfolio can provide
significant relief. |
To be provided at a later date. |
| 2 |
HEA Title IV, Sec. 435(o) |
Economic Hardship Deferment - Extend eligibility
through the end of a medical residency that is required
before the borrower may begin professional practice. |
Currently, medical residents are eligible
for mandatory forbearance during their residency period.
This is a very expensive option for borrowers and for
those that qualify, extending the economic hardship deferment
through the residency period would ease the repayment
burden. |
Insert a new paragraph (D) at the end of
section 435(o)(1) as follows: "(D) the borrower is serving
in a medical dental internship or residency that must
be successfully completed before the borrower may begin
professional practice or service, or for the length of
time they are in a medical or dental internship or residency
leading to a degree or certificate awarded by a hospital
or health care facility which offers postgraduate training." |
| 3 |
HEA Title IV, Sec. 435(o) |
Economic Hardship Deferment - Include all
educational loans in the calculation. |
Including only Stafford loans does not give
an accurate picture of the economic burdens suffered by
a borrower as a result of financing their education. Including
alternative and institutional loans would provide a more
accurate picture of a borrower's financial situation. |
|
| 4 |
HEA Title IV, Sec. 483(a)(3) |
Access to FAFSA Data - Allow non-profit
organizations that provide financial assistance with admissions
testing and school application costs to be designated
as eligible recipients of FAFSA data. |
The AAMC administers a Fee Assistance Program
(FAP), which grants a reduced MCAT fee and 10 free AMCAS
(the common application service for medical schools) applications
to students who exhibit financial need. The collection
and verification of income data is a very labor intensive
process, and we would like to be able to access the federal
FAFSA process which collects this data and condenses it
to a single number. Under current law, only institutions
of higher education, guaranty agencies, and States are
able to receive the FAFSA data {HEA Sec. 483(a)(3)}. The
AAMC would like to use this data in order to provide more
timely responses to student fee assistance applications.
|
Revise Sec. 483(a)(3) to read: "(3) Distribution
of Data -Institutions of higher education, guaranty agencies,
States, and non-profit organizations providing financial
assistance with admissions testing and school application
costs shall receive, without charge, the data collected
by the Secretary using the form developed pursuant to
this section for the purposes of processing loan applications
and determining need and eligibility for institutional
and State financial aid awards…." |
