Student Loan Evaluation and Stabilization Act of 1995

Student Loan Evaluation and Stabilization Act of 1995 - Amends the Higher Education Act of 1965 with respect to student loan programs.

(Sec. 3) Revises the Federal Direct Student Loan program to limit the proportion of loans made under such program: (1) for academic year 1994-1995, to five percent of the new student loan volume for such year; and (2) for academic year 1995-1996 and any succeeding fiscal year, to loans to students and parents of students attending eligible institutions which have applied and been accepted for institutional participation in such program on or before December 31, 1994. Eliminates provisions for selecting additional institutions to participate in such pilot program.

Reduces the maximum amount of funds for administrative expenses of such program allowed for certain periods. Revises the items which such funds must cover, including the costs of annually assessing such program and payment of an administrative cost allowance for the expenses of guaranty agencies in servicing outstanding loans in their portfolios and in guaranteeing new loans.

Revises provisions for congressional oversight of program administration, by providing for funding triggers which allow administrative funds to be obligated only in such amounts and according to such schedule as specified in the appropriations Act for the Department of Education after submission by the Department of a detailed proposal for such expenditures.

Requires a guaranty agency to: (1) submit a specified application before obtaining an administrative cost allowance from such funds; (2) expend such allowance only for specified purposes; and (3) elect a payment rate on the basis of one of two specified formulas. Provides for ratable reductions of such allowances when total payments exceed a specified level.

Directs the Secretary of Education to provide a detailed quarterly report of all such expenditures to specified congressional committee chairs. Requires such report to specifically identify all contracts entered into by the Department for services supporting the Federal Family Education Loan (FFEL) Program and the Federal Perkins Loan Program, as well as the current and projected costs of such contracts.

Eliminates the transition to the Federal Direct Loan Program.

(Sec. 4) Sets forth conditions under which: (1) Federal Perkins Loan borrowers can obtain FFEL consolidation loans; and (2) FFEL borrowers can obtain Federal direct consolidation loans.

(Sec. 5) Revises provisions relating to reserve fund programs.

(Sec. 6) Sets institutional default rate limitations on direct lending.

(Sec. 7) Provides for applications for FFEL loans using the free Federal application form, which is already in use for other types of student aid. Allows such form to be in an electronic or any other format, subject to certain conditions, in order to facilitate use by borrowers and institutions. Provides for authorized guaranty agencies to receive such form.

(Sec. 8) Amends the Congressional Budget Act to prescribe a formula for determining the cost of a direct loan on the basis of the net present value, at the time the direct loan is disbursed, of specified types of cash flows for the estimated life of the loan.