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 40 percent of new student loan volume for such year, except that the Secretary of Education may not enter into agreements with any additional eligible institutions that have not applied and been accepted for participation in such program on or before December 31, 1994. Eliminates provisions for selecting additional institutions to participate in such pilot program.

Makes available, for each fiscal year to the Secretary from funds not otherwise appropriated, funds for all direct and indirect expenses associated with such Federal Direct Student Loan program.

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.

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.

Requires a guaranty agency to elect an administrative cost allowance payment rate on the basis of one of two specified formulas.

Eliminates the transition to the Federal Direct Loan Program.

(Sec. 4) Provides that direct loans have the same terms and conditions as FFEL (guaranteed) loans.

(Sec. 5) 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. 6) Allows income contingent repayment in the FFEL (guaranteed) loan program.

(Sec. 7) Revises provisions relating to reserve fund programs.

(Sec. 8) Sets institutional default rate limitations on direct lending. Conditions the Secretary's authority to make new direct loans on the issuance of certain final standards and procedures for calculation of institutional default rates and for termination proceedings.

(Sec. 9) Permits development, production, distribution, or use of the common application form in an electronic format through software produced or distributed by guaranty agencies or eligible lenders, or consortia. Allows the applicant to certify the outcome of the application in a subsequent document. Prohibits charging a fee in connection with the use of such electronic form. Directs the Secretary to approve the use of such a form which is not inconsistent with certain HEA provisions, or to specifically identify the changes necessary to secure approval.

(Sec. 10) 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. 11) 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.