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Reference: Appropriations Bill Sponsors Committees Record Votes Laws


Saturday, January 20, 2007

H.R. 5: Motion to Recommit With Instructions

As printed on pages H628, H629 in the Record:
Mr. McKeon moves to recommit the bill H.R. 5 to the Committee on Education and Labor with instructions to report the same back to the House forthwith with the following amendment:

At the end of the bill, add the following new section:

SEC. __. BENEFITS CONTINGENT ON INCOME OR MILITARY SERVICE.

(a) Eligibility for Reduced Rates.--Notwithstanding the amendments made by section 2 of this Act, a borrower shall not be eligible for a reduced interest rate under the amendments made by such section for any year during the repayment period of the loan unless--

(1) the borrower demonstrates, in accordance with regulations prescribed by the Secretary, that the borrower's adjusted gross income for the most recently preceding year was less than $65,000; or

(2) the borrower, during any part of that year--

(A) is serving on active duty during a war or other military operation or national emergency (as such term is defined in section 481(d)(4) of the Higher Education Act of 1965 (20 U.S.C. 188(d)(4)); or

(B) is performing qualifying National Guard duty during a war or other military operation or national emergency (as such term is defined in section 481(d)(5) of such Act (20 U.S.C. 188(d)(5)).

(b) Income Verification.--In prescribing regulations for purposes of subsection (a)(1), the Secretary shall provide methods for verifying the adjusted gross income of a borrower that are, as nearly as practical, identical to the methods used to determine adjusted gross income and to verify that income for borrowers of income contingent loans under section 455(e) of the Higher Education Act of 1965 (20 U.S.C. 1087e(e)).

This motion failed 186-241, 8 not voting.

1 comments:

  1. Most support the H.R. 5 bill without even fully understanding the bill and it's additions (Sunshine Act & Star Act). Rightfully so, since its sugar coded with, "It's going to lower your student loan interest rates”! Yes, loan rates will drop .68% every year for the next 5 yrs however, it's not an instant drop and it's ONLY on subsidized loans. Most student loan borrowers loans are unsubsidized loans, which will not be reduced at all. Also, subsidized loan rates will change right back to 6.80% once the 5yr term is over, just in time for those new graduates to become responsible for the interest on these loans. Hmm, sounds like the Govt is just giving themselves a break, not the students. Additionally, H.R. 5 and it's additions will increase the fees to FFELP lenders which will force a lot of these lenders out of the student loan industry, minimizing borrowers choices and reducing incentives only FFELP lenders give to borrowers costing student loan borrowers THOUSANDS of dollars in interest. The GOVT is trying to monopolize the industry with this bill and it's additions. THESE BILLS ARE BAD NEWS FOR STUDENT LOAN BORROWERS! If the Govt really wanted to help students they would put more money into grants and/or incentives to help lowering tuition charged by the colleges. I advise doing your online research, you'll be shocked at all the hidden things these bills are going to do student loan borrowers. If you do not support the H.R. 5 bill, Sunshine Act, or Star Act, I recommend contacting your states senator, contact info is available at: http://www.senate.gov/general/contact_information/senators_cfm.cfm. It takes less than 60 seconds to voice your opinion.
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