Legislative History

Public Laws Listed Chronologically By Date of Enactment

National Vocational Student Loan Insurance Act of 1965 – Pub. L. 89-287; October 22, 1965

This legislation authorized a separate guaranteed student loan program for vocational students. This Act was repealed by Pub. L. 90-575 (Higher Education Amendments of 1968); vocational students were then made eligible under Pub. L. 89-329 (Higher Education Act of 1965).

Higher Education Act of 1965 – Pub. L. 89-329; November 8, 1965

This is the authorizing legislation for the Guaranteed Student Loan (GSL) programs. Title IV, Part B of this Act originally established a program of low-interest insured loans for students enrolled in institutions of higher education and, with the repeal of Pub. L. 89-287 (National Vocational Student Loan Insurance Act of 1965), in vocational and proprietary schools. Regarding the GSL programs, the purpose of this legislation was:

• to encourage state and private nonprofit guaranty agencies to establish adequate loan insurance programs;

• to provide a federal program of loan insurance for students not having reasonable access to state or private nonprofit guaranty agencies; and

• to pay federal interest subsidies (i.e., interest benefits) on loans made under these programs, as well as on loans made under direct state loan programs (i.e., non-insured loans made directly by a state agency).

Federal Claims Collection Act of 1966 – Pub. L. 89-508; July 19, 1966

This Act provided for the collection and compromise of all claims of the United States, pursuant to regulations and standards published by the General Accounting Office (GAO) and/or the head of each executive-branch agency.

International Education Act of 1966 – Pub. L. 89-698; October 29, 1966

Section 204 of this Act amended the GSL programs to allow students to obtain GSLs to attend foreign institutions of higher education.

Higher Education Amendments of 1966 – Pub. L. 89-752; November 3, 1966

Section 11 of this Act established that the minimum federal advance to any guaranty agency for any fiscal year, pursuant to §422(a) of Pub. L. 89-329, would be $25,000.

Section 12 of this Act authorized the government of the District of Columbia to establish a guaranty agency and authorized appropriations for that purpose. The Commissioner of Education was also required to conduct a study to determine ways of improving the GSL programs.

Economic Opportunity Amendments of 1966 – Pub. L. 89-794; November 8, 1966

Section 1101(b) of this Act provided for deferment of repayment for full-time VISTA volunteers.

(Untitled) – Pub. L. 90-460; August 3, 1968

Section 2 of this Act raised the maximum interest rate applicable to GSLs from 6 percent to 7 percent An administrative cost allowance (maximum 1 percent) was also authorized when state usury laws did not permit an interest rate of 7 percent Comparable changes were made to both Pub. L. 89-287 and Pub. L. 89-329.

Section 3 provided for federal reinsurance of loans guaranteed by state or private nonprofit guaranty agencies. Reimbursement was 80% of the principal amount of losses incurred by the agencies in paying default/death/disability claims to lenders.

Higher Education Amendments of 1968 – Pub. L. 90-575; October 16, 1968

Highlights from this Act include:

• The GSL programs were extended through 1971.

• The 3% interest subsidy paid during the repayment period was eliminated.

• Provided for federal payment and discharge of borrower debts on death/disability claims.

• Repealed Pub. L. 89-287 and also permitted the Commissioner of Education to make direct loans to vocational students.

• Eliminated the 1- percent administrative allowance (authorized by Pub. L. 90-460) and provided for a permanent override of state usuary laws.

• Authorized $12.5 million in new federal advance funds for guaranty agencies (§422(a) of Pub. L. 89-329)

• Required guaranty agencies to authorize deferments for full-time study, VISTA/peace corps service and service in the armed forces.

• Annual/aggregate loan amounts under guaranty agency programs were made comparable to the Federal Insured Student Loan Program (FISLP).

• The definition of "eligible lender" was expanded to include pension funds; credit unions could invest a larger percentage of assets in GSLs.

• The Commissioner was authorized to insure loans made by lenders in guaranty agency states for borrowers not meeting an agency's residency requirements, and was also authorized to provide federal insurance to lenders operating on an interstate basis.

• A minimum annual repayment amount of $360 was established for borrowers.

• Section 461(a) of this Act amended the definition of "state" to include the Trust Territories of the Pacific.

Emergency Insured Student Loan Act of 1969 – Pub. L. 91-95; October 22, 1969

This law, originally a separate Act that did not amend Pub. L. 89-329, created a special allowance payment to lenders; the maximum special allowance was set at 3 percent. Pub. L. 94-482 (Education Amendments of 1976) subsequently repealed this Act and incorporated the special allowance provisions (somewhat revised) into Pub. L. 89-329.

This Act also required the Secretary of HEW to conduct a study to determine if there were any practices of lending institutions that discriminated against particular classes or categories of students. The report was to be submitted to the Congress prior to March 1, 1970.

Fair Credit Reporting Act – Pub. L. 91-508; October 26, 1970

This Act (Title VI of the Consumer Credit Protection Act of 1968) became effective on April 25, 1971, and was the first federal "regulation" of the consumer reporting industry (i.e., credit bureaus, investigative reporting agencies and other organizations that gather and report information about consumers).

Comprehensive Health Manpower Training Act of 1971 – Pub. L. 92-157; November 18, 1971

Section 105(b) of this Act amended §741(f) of the Public Health Service Act to provide for repayment of educational loans by the Secretary of HEW for service of at least two years in areas having shortages of, and need for, personnel trained in certain professions (medicine, osteopathy, dentistry, veterinary medicine, optometry, pharmacy or podiatry).

Nurse Training Act of 1971 – Pub. L. 92-158; November 18, 1971

Section 6(b) of this Act amended the Public Health Service Act to provide for repayment of educational loans (costs of nurse training) by the Secretary of HEW for service of at least two years in areas having shortages of, and need for, nurses.

Education Amendments of 1972 – Pub. L. 92-318; June 23, 1972

Highlights of this Act include:

• Extended the GSLP through June 30, 1975.

• Increased annual amounts for all students to $2,500 and aggregate amounts for graduate/professional students to $10,000.

• Required "need analysis" for determining eligibility for interest benefits.

• Required that the borrower sign an affidavit stating that the loan proceeds would be used only for educational purposes ("Statement of Educational Purpose").

• Increased FISLP insurance coverage to 100% of principal and interest, and pledged the full faith and credit of the U.S. to the payment of FISLP claims.

• Created the Student Loan Marketing Association (Sallie Mae or SLMA).

• Authorized the Commissioner to publish a list of state agencies determined to be reliable authorities as to the quality of public vocational schools.

Joint Resolution – Pub. L. 92-391; August 19, 1972

This Act suspended until March 1, 1973, all provisions of Pub. L. 92-318 except the extension of the GSLP, the creation of Sallie Mae, and the student affidavit requirement.

Domestic Volunteer Service Act of 1973 – Pub. L. 93-113; October 1, 1973

This Act repealed Title VIII of the Economic Opportunity Act of 1964, which had authorized GSLP deferments, and substituted a deferment provision for full-time volunteers in the ACTION programs authorized by Title I of this Act.

(Untitled) – Pub. L. 93-269; April 18, 1974

This Act revised the requirements for determining eligibility for interest benefits and extended Pub. L. 91-95 through June 30, 1975.

Education Amendments of 1974 – Pub. L. 93-380; August 21, 1974

This Act contained amendments relating to the Office of Education's regional offices, the General Education Provisions Act (GEPA), and the transmittal of rules/regulations to the Congress (known as the "Buckley Amendment").

Equal Credit Opportunity Act – Pub. L. 93-495; October 28, 1974

This Act restricted the conditions under which a lender can request information about marital status and obtain the signature and income information of a spouse as part of a loan application. Regulation B, published in the Federal Register on October 22, 1975, implemented this Act. The GSLP was deemed exempt from these provisions during periods in which the adjusted family income of the borrower and family was used to determine eligibility for interest benefits.

Privacy Act of 1974 – Pub. L. 93-579; December 31, 1974

This Act provided for the safeguard of individual records, and the access to such records, that are maintained by federal agencies.

Emergency Technical Provisions Act of 1976 – Pub. L. 94-328; June 30, 1976

This Act extended the authority for lenders to make insured loans and for the special allowance rates to be set through the "transition quarter" ending September 30, 1976. This "transition quarter was the quarter that bridged the old federal fiscal year (July 1 - June 30) and the new one (October 1 - September 30).

Education Amendments of 1976 – Pub. L. 94-482; October 12, 1976

This Act extended the GSLP though June 30, 1981, and totally rewrote the authorizing legislation for the first time since the enactment of Pub. L. 89-329.

Technical and Miscellaneous Amendments – Pub. L. 95-43; June 15, 1977

Most amendments made by this Act dealt with changes effected by Pub. L. 94-482 and to guaranty agency programs. This Act also amended the formula for special allowance (SA) to calculate SA on the "average unpaid balance of principal" rather than on the "unpaid balance of disbursed principal."The existing practice of dividing the "annual" special allowance rate by four (to obtain a "quarterly rate") was added to the statutory formula.

Fair Debt Collection Practices Act – Pub. L. 95-109; September 20, 1977

This Act is to ensure fair treatment by debt collectors and to prohibit abusive and deceptive collection practices. Pub. L. 99-361 was amended to include attorneys, collecting on behalf of and in the name of creditors, as "debt collectors."

(Untitled) – Pub. L. 95-180; November 15, 1977

This Act amended the definition of "state" (§1201(b) of Pub. L. 89-329) was amended to include the Northern Mariana Islands.

Education Amendments of 1978 – Pub. L. 95-561; November 1, 1978

Section 1322 of this Act amended the effective date of §422(c) ["1976 advance funds"to "new" guaranty agencies] to be October 1, 1976 rather than October 1, 1977 (as originally enacted by Pub. L. 94-482). This was enacted to permit the Higher Education Assistance Foundation (HEAF) to qualify as a "new" guaranty agency.

Middle Income Student Assistance Act – Pub. L. 95-566; November 1, 1978

This Act eliminated the "adjusted family income" ceiling for determining eligibility for interest benefits. A new deferment was authorized for borrowers in rehabilitation training programs.

Uniform Law on the Subject of Bankruptcy – Pub. L. 95-598; November 1, 1978

Section 317 of this Act repealed section 439A of Pub. L. 89-329 that had been enacted by Pub. L. 94-482 and had provided for the non-dischargeability of student loans through the first five years of repayment. The repeal was effective on the date of enactment of this Act.

Section 523 of this Act established a new student loan provision (effective October 1, 1979) that was generally comparable to the repealed section 439A, but applied only to loans held by governmental units and institutions of higher education. As such, it did not apply to loans held by commercial lenders, Sallie Mae, proprietary schools, or private non-profit guaranty agencies.

Right to Financial Privacy Act of 1978 – Pub. L. 95-630; November 10, 1978

This Act governs financial institutions that provide federal agencies or their agents with access to, or information contained in, the financial records of a customer. It does not govern disclosures and access provided to non-federal organizations such as guaranty agencies.

Higher Education Technical Amendments of 1979 – Pub. L. 96-49; August 13, 1979

This Act removed the 5 percent ceiling on the special allowance rate, effective as of the quarter ending September 30, 1979; the special allowance formula was amended; and Section 428(a) of Pub. L. 89-329 was amended to provide for a special multiple installment agreement.

(Untitled) – Pub. L. 96-56; August 14, 1979

This Act amended the Bankruptcy Act to include the provisions of section 439A that had been repealed by section 317 of Pub. L. 95-598, effective through October 1, 1979. The Bankruptcy Act was amended, effective October 1, 1979, to apply these provisions to a larger group of student loans, including all GSLs, NDSLs, and Health Education Assistance Loans (HEALs).

Department of Education Organization Act – Pub. L. 96-88; October 17, 1979

This Act established the cabinet-level Department of Education, under which the federal student assistance programs formerly were administered by the U.S. Office of Education.

Department of Defense Authorization Act, 1981 – Pub. L. 96-342; September 8, 1980

Section 902 of this Act provided for the Armed Forces Repayment Program, under which the Secretary of Defense is authorized to repay GSLs and NDSLs on the basis of criteria established by the Defense Department.

Education Amendments of 1980 – Pub. L. 96-374; October 3, 1980

This Act made numerous changes to the GSL programs covering:

• Annual/aggregate loan amounts.

• Interest rates.

• Special allowance payments to tax-exempt authorities.

• New deferments for Public Health Service, service with a tax-exempt organization, internship programs, and temporary, total disability.

• A six-month grace period, for 8 percent and 9 percent GSLs, and a post-deferment grace period.

• Amendments to the Administrative Cost Allowance (ACA) spending minimums and definitions.

• Establishment of the Parent Loans for Undergraduate Students (PLUS) program.

• Changes to the Sallie Mae warehousing and financing authority and Sallie Mae's authority to make Consolidation Loans.

• New definitions of "independent student," "allowable cost of attendance," and "student eligibility" for all Title IV programs.

Omnibus Reconciliation Act of 1980 – Pub. L. 96-499; December 5, 1980

Section 302 of this Act amended §6103(m) of the Internal Revenue Code of 1954 to provide for the disclosure of mailing addresses of defaulted student loan borrowers by the Secretary to employees/agents of the Department of Education, guaranty agencies, and schools for the purpose of locating such borrowers and collecting defaulted loans.

Omnibus Budget Reconciliation Act of 1981 (including the Postsecondary Student Assistance Amendments of 1981) – Pub. L. 97-35; August 13, 1981

The Postsecondary Student Assistance Amendments of 1981 (part of Pub. L. 97-35) made additional changes to the GSL programs, including:

• Reinstatement of need analysis criteria for eligibility for interest benefits.

• Revisions to the definitions of "estimated cost of attendance" and "estimated financial assistance" (to include Veterans and Social Security educational benefits).

• Elimination of "rounding" of special allowance rate and payment of special allowance on non-subsidized loans.

• Implementation of the loan origination fee.

• Repeal of the post-deferment grace period.

• Increase of the minimum annual repayment amount from $360 to $600.

• Repeal of the increased loan amounts for independent undergraduate students (GSL).

• Increased PLUS interest rate.

• Expanded eligibility under the PLUS program to include independent undergraduate students and graduate/professional students.

Department of Defense Authorization Act – Pub. L. 97-252; September 1982

Section 1113(a) of this Act amended the Military Selective Service Act. Effective for periods of instruction beginning on/after June 30, 1983, any student who is subject to Selective Service registration and has not done so is ineligible to receive any Title IV student assistance.

Student Financial Assistance Technical Amendments Act of 1982 – Pub. L. 97-301; October 13, 1982

Section 9 of this Act dealt with the 1983-84 GSL Family Contribution Schedule (FCS). Section 13(a) amended §433A of Pub. L. 89-329 to require a number of new disclosures prior to the start of the repayment period. Section 14(b) extended the authority of Sallie Mae to make Consolidation loans (until August 1, 1983).

Garn-St. Germain Depository Institutions Act of 1982 – Pub. L. 97-320; October 15, 1982

Section 701 of this Act amended §104 of the Truth-in-Lending Act to exempt GSLs and NDSLs from the requirements of Regulation Z and from the disclosure requirements of any state law. These amendments were made retroactive and applied to all GSLs.

Debt Collection Act of 1982 – Pub. L. 97-365; October 25, 1982

This Act amended the Privacy Act (Pub. L. 93-579) and the Federal Claims Collection Act of 1966 (Pub. L. 89-508) to require that agencies administering certain federal loan programs to provide for a taxpayer's identification number. It also provided several procedures for the collection of debts owed to the federal government, including salary offsets for federal employees.

Student Loan Consolidation and Technical Amendments Act of 1983 – Pub. L. 98-79; August 15, 1983

This Act made several significant changes, including:

• Revised loan disclosure requirements.

• Extended the authority of Sallie Mae to make Consolidation loans until November 1, 1983.

• Technical changes to the Administrative Cost Allowance (ACA) and interest rate provisions.

• Added "non-discrimination" language.

• Clarified when the repayment period begins (loans carrying a six-month grace period).

• Amended Pub. L. 97-301 to require that the 1984-85 and 1985-86 GSL Family Contribution Schedules (FCS) be the same as the 1982-83 FCS, except for updating for "the most recent and relevant data."

• Established restrictions on special allowance payments to tax-exempt authorities and required those entities to submit Plans for Doing Business to the Department of Education.

Deficit Reduction Act of 1984 – Pub. L. 98-369; July 18, 1984

Certain provisions of this Act affected tax-exempt bonds and the funding of student loans, particularly by the establishment of a state-wide cap for student loans and industrial revenue bonds. A study of tax-exempt funding of student loans and a review of IRS regulations on tax-exempt funding was mandated. Section 2653(c) of this Act provided for the IRS offset program through 1/1/88.

Single Audit Act of 1984 – Pub. L. 98-502; October 19, 1984

This Act provided for uniform requirements for audits of federal financial assistance provided to state and local governments. It was, among other things, meant to ensure that federal departments rely on audit work done by other state and federal agencies, such as the General Accounting Office (GAO).

Education Amendments of 1984 – Pub. L. 98-511; October 19, 1984

This Act amended Pub. L. 97-301 to continue the GSL Family Contribution Schedule (FCS) in essentially the same form through the 1986-87 academic year. The Act also extended, through 1986-87, the independent student criteria and separate need analysis systems for the Campus-based programs.

Department of Defense Authorization Act, 1986 – Pub. L. 99-145; November 11, 1985

This Act made permanent the Armed Forces Loan Repayment Program enacted by Pub. L. 96-342.

Balanced Budget and Emergency Deficit Control Act of 1985 – Pub. L. 99-177; December 12, 1985

This Act, relating to the federal debt ceiling limit, is known as the "Gramm-Rudman-Hollings" balanced budget amendment. When automatic spending cuts are mandated by the President, via a sequestration order, the GSL programs are affected by a reduction in special allowance rates and an increased loan origination fee.

Compact of Free Association – Pub. L. 99-239; January 14, 1986

This Act provided for the implementation of compacts to establish the governments of Palau, the Marshall Islands and the Federated States of Micronesia, formerly known as the Trust Territories of the Pacific Islands). As new entities under those compacts, they would no longer be subject to the laws of the United States and, with certain exceptions, their citizens would no longer be eligible for federal student assistance.

Consolidated Omnibus Budget Reconciliation Act of 1985 – Pub. L. 99-272; April 7, 1986

This Act extended the GSL programs through September 30, 1988 and made a number of changes to the Title IV programs.

Student Financial Assistance Technical Corrections Act of 1986 – Pub. L. 99-320; May 23, 1986

This Act made corrections to Pub. L. 99-272:

• Amended the effective date for ineligibility for the Title IV programs due to default on student loans.

• Amended the effective date for the requirement that loan checks be sent directly to schools.

• Provided that guaranty agencies can be reimbursed for Supplemental Preclaims Assistance costs through reinsurance payments.

Higher Education Amendments of 1986 – Pub. L. 99-498; October 17, 1986

This Act, known as "Reauthorization," extended the Title IV programs through 1991, and made numerous major changes to those programs.

Immigration Reform and Control Act of 1986 – Pub. L. 99-603; November 6, 1986

This Act established rules for the eligibility for federal programs of financial assistance of aliens granted temporary resident status.

Higher Education Technical Amendments Act of 1987 – Pub. L. 100-50; June 3, 1987

This Act made several additional changes to the Title IV programs that were considered as if enacted as part of Pub. L. 99-498.

Balanced Budget and Emergency Deficit Control Reaffirmation Act of 1987 – Pub. L. 100-119; September 29, 1987

In part, this Act reinstated the provisions of §256(c) of Pub. L. 99-177. The Presidential sequestration order was issued, effective October 20, 1987, to affect special allowance payments and origination fees.

Omnibus Budget Reconciliation Act of 1987 – Pub. L. 100-203; December 22, 1987

This Act achieved the deficit reductions mandated by Pub. L. 100-119 and rescinded the initial sequestration order of October 20, 1987. §428(k) of Pub. L. 89-329 was amended to require guaranty agencies to provide schools, upon request, information about former students who have defaulted. Authority for the federal tax offset program, authorized by §2653 of Pub. L. 98-369, was extended through 7/1/88.

Augustus F. Hawkins-Robert T. Stafford Elementary and Secondary School Improvement Amendments of 1988 – Pub. L. 100-297; April 28, 1988

Effective July 1, 1988, §2601 of this Act renamed the programs authorized under Title IV, Part B of Pub. L. 89-329 as the "Robert T. Stafford Loan Program."

NOTE: Initially, after discussions with congressional staff, the decision was made to refer to these programs collectively as the "Part B Programs" and to refer to the "Guaranteed Student Loan Program" and "Guaranteed Student Loans"as the "Stafford Loan Program" and "Stafford Loans" respectively, with the other programs (FISLP, Consolidation, PLUS and SLS) continuing to be referred to by their individual names. Later, the decision was made to use "Guaranteed Student Loan programs" as the "umbrella" term for the Title IV, Part B programs and to use the terms "Stafford," "FISLP," "Consolidation," "PLUS," and "SLS" for the individual programs.