Self-Reliance (Educational Assistance/Loans) bill

Self-Reliance Scholarship Act of 1991 - Amends the Higher Education Act of 1965 (HEA) to provide for Self-Reliance Scholarships to assist students in financing their undergraduate and graduate education.

Establishes the self-reliance scholarship program as a student loan program, with repayments to be made over chosen periods under the income tax system on the basis of the individual's adjusted gross income.

Requires the Director of the Office of Self-Reliance Scholarships established by this Act (the Director) to make such loans to each eligible student who qualifies, in an amount determined according to a specified formula. Authorizes the Director to enter into a contract for the conduct of the program or any portion of it. Requires each eligible institution to submit a list of loan applicants and the amounts for which they are qualified and promptly notify the Director of any change in their enrollment status. Requires the Director to establish an account for each such loan recipient by name and taxpayer identification number and provide for the increase of the total amount stated for such account by any amounts subsequently loaned to such recipient.

Sets forth the terms of institutional agreements under such program, enforcement provisions, and reporting requirements. Requires each eligible institution entering such a program agreement, if it experiences a percentage increase in its cost of attendance exceeding a certain amount, to report to the Director on such increase and its justification. Requires the Director to report to the Congress on the reasons for such excessive increases and whether such information should be used as a basis on which to suspend or revoke, in whole or in part, the agreement with the eligible institution.

Sets forth annual and aggregate limits on the amounts of such loans to individuals, with adjustments for inflation and for less than full-time students. Sets forth terms of such loans and provisions for disbursement of proceeds.

Prohibits the amount of any such loan from being taken into consideration in determining student eligibility for assistance under any other program assisted under HEA.

Establishes in the Treasury the Education Trust Fund (the Fund), consisting of transfers from education loan repayment taxes and surtaxes on individuals with incomes over $1,000,000 and from loan refunds after student withdrawals, amounts received pursuant to the issuance of obligations, and any interest earned on Fund investments. Bases the transfer of tax and surtax amounts on estimates. Requires the Secretary of the Treasury to invest the portion of the Fund which the Director judges is not required to meet current withdrawals. Authorizes the Fund to issue certain obligations. Authorizes the Director to obligate certain sums available to the Fund for specified purposes. Requires the Director to hold the Fund and report annually to the Congress on its financial condition, the results of its operations, and its expected condition and operations.

Provides for repayment of such loans. Requires the Director to develop and implement a procedure for computing repayment percentage options for each borrower, taking specified factors into consideration. Sets various limits on such repayments based on the individual's gross income. Limits the maximum repayment period to 25 years, with individuals given the option of selecting a 15, 20, or 25 year repayment period. Requires development of a buyout procedure, including interest and a prepayment penalty. Requires the Director to: (1) provide each borrower with the option to select a repayment status with a repayment percentage determined in accordance with specified procedures and factors; and (2) transmit such information along with the borrower's taxpayer identification number to the borrower and to the Secretary of the Treasury by January 1 of each calendar year. Requires repayment status to commence at the start of the first taxable year following either the date of the loan or the date of graduation, but in no event later than the sixth taxable year after the date of the loan. Authorizes the Director, however, to establish special repayment rules for individuals in categories of special consideration.

Makes proprietary trade schools ineligible for the Self-Reliance Scholarship program. Makes eligible for such scholarships any student who is a U.S. citizen of age 17 through 50.

Amends the Internal Revenue Code to establish the education loan repayment tax, to be imposed upon individuals certified by the Director in an amount equal to the repayment percentage of the taxpayer's adjusted gross income for the taxable year. Sets forth minimum and maximum adjusted gross income amounts. Sets forth requirements for joint returns.

Establishes a surtax on individuals with taxable incomes over $1,000,000. Imposes such surtax on income tax at a specified rate in certain cases, and on the tentative minimum tax at a specified rate in certain cases. Makes special rules for a surtax on estate and trusts and for treatment of married individuals filing separate returns.

Amends the Department of Education Organization Act to establish the Office of Self-Reliance Scholarships, to be administered by the Director who is responsible for overseeing this Act.