House Republicans Introduce
Higher Ed Bill
May 7, 2004 - Republicans on the House Committee on
Education and the Workforce May 5 introduced legislation to
reauthorize until 2011 the student aid portions of the Higher
Education Act. The "College
Access and Opportunity Act of 2004" intends to expand
access to higher education for low and middle income students
by "strengthening Pell Grants, student aid, student access"
and "reducing loan costs, fees and red tape for students
and graduates." The legislation includes several provisions
of interest to medical schools and teaching hospitals.
Specifically, the legislation calls for annual loan limits
for unsubsidized Stafford loans to be increased from the current
$10,000 to $12,000. The bill also calls for eliminating the
scheduled change from a variable rate on Stafford loans to
a fixed rate of 6.8 percent on July 1, 2006. Under the proposal,
all loans, including consolidation loans, would be subject
to a variable interest rate. Additionally, the measure would
eliminate the "single-holder" rule that currently
limits borrower's ability to shop around for a consolidation
loan. Additional provisions reduce origination fees from 3
percent to 1 percent and close a loophole that allows lenders
to reap "windfall profits" by requiring lenders
to return excess profits to the federal government.
Information:
Jonathan Fishburn, Director, Research, Education and Veterans' Legislative Affairs
AAMC Government Relations
jfishburn@aamc.org
(202) 828-0525
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