Federal Student Loan Act

Federal Student Loan Act - Title I: Loans for College Students - Authorizes the Secretary of Education to enter into agreements with institutions of higher education for a program of student loans. Provides for payments to such institutions during FY 1988 through 1993, for student loans to cover periods through FY 1994.

Sets forth the terms of such agreements, including maximum individual and average amounts of such loans per academic year ($3,000 individual and $2,250 average for undergraduates; $4,500 individual and $3,000 average for graduate students).

Provides that payments to institutions be used for the establishment and maintenance of separate Federal student loan funds for graduate and undergraduate students at such institutions.

Sets forth loan repayment terms. Requires a recipient to make yearly payments to the Secretary equal to five percent of personal net taxable income or ten percent of the total amount of the loan, for a period beginning with the second taxable year such recipient is no longer a bona fide student working toward a degree, until the total amount, without interest, is repaid. Sets an interest rate on any sums due and unpaid.

Authorizes appropriations for FY 1988 through 1993, to be available for award until the close of the succeeding fiscal year.

Title II: Definitions and Other Provisions Applicable to Entire Act - Sets forth the manner of Federal administration of such program (including the appointment of advisory committees by the Secretary) and the method of payment to institutions. Authorizes administrative appropriations for FY 1988 through 1993.

Title III: National Study - Directs the Secretary to study, and to report to the President and the Congress on, the extent to which the provisions of this Act can reasonably replace various other Federal grants or assistance programs.