H.R.3863 - Student Debt Reduction Act of 1996104th Congress (1995-1996)
Summary: H.R.3863 — 104th Congress (1995-1996)
Passed House amended (09/11/1996)
Student Debt Reduction Act of 1996 - Amends the Higher Education Act of 1965 (HEA) to revise the origination fee requirement for the unsubsidized Federal Family Education Loan program. Conditions the lender's right to charge a borrower such a fee on the lender's assessing the same fee to all student borrowers. Allows assessment of a lesser fee for borrowers demonstrating greater financial need.
Directs the Secretary of Education to submit to the Congress a legislative proposal that would permit the Secretary to allocate the right to make subsidized and unsubsidized student loans on the basis of competitive bidding. Requires such proposal to include provisions to ensure that any payments received from competitive bidding are equally allocated to deficit reduction and to pro rata reduction of origination fees in both guaranteed and direct student loans.
Directs the Secretary to conduct, and report to the Congress on, a statistical analysis of the subsidized and unsubsidized student loan programs under HEA: (1) to gather data on lenders' use of loan fees; and (2) to determine if there are any anomalies that would indicate any institutional, programmatic, or socioeconomic discrimination in the assessing or waiving of such fees.