Student Loan Marketplace Equity Act

Student Loan Marketplace Equity Act - Amends the Higher Education Act of 1965 to impose a special fee on the entity whose portfolio of interests in student loans has the greatest value (dominant lender), as determined annually by the Secretary of Education.

Requires the dominant lender to pay the fee to the Secretary monthly, calculated annually in an amount equal to 0.25% of such portfolio value.

[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4628 Introduced in House (IH)]







109th CONGRESS
  1st Session
                                H. R. 4628

 To amend the Higher Education Act of 1965 to impose a fee on holdings 
                           of student loans.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           December 17, 2005

  Mr. Holden introduced the following bill; which was referred to the 
                Committee on Education and the Workforce

_______________________________________________________________________

                                 A BILL


 
 To amend the Higher Education Act of 1965 to impose a fee on holdings 
                           of student loans.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Student Loan Marketplace Equity 
Act''.

SEC. 2. FEE IMPOSED.

    Section 438 of the Higher Education Act of 1965 (20 U.S.C. 1087-1) 
is amended by adding at the end the following new subsection:
    ``(g) Special Fee.--
            ``(1) Fee imposed.--An entity that is the dominant lender 
        under this part shall pay to the Secretary, on a monthly basis, 
        a special fee calculated on an annual basis in an amount equal 
        to 0.25 percent of the value of the entity's portfolio of 
        interests in student loans.
            ``(2) Value of portfolio.--The value of an entity's 
        portfolio of interest in student loans is equal to the sum of--
                    ``(A) the principal amount of all loans made, 
                insured, or guaranteed under this part that are held 
                directly by the entity or its subsidiary or affiliate;
                    ``(B) the principal amount of all loans made, 
                insured, or guaranteed under this part that have been 
                sold or or otherwise transferred to a securitization 
                trust by the entity or its subsidiary or affiliate, but 
                that are otherwise under the control of the entity or 
                its subsidiary or affiliate; and
                    ``(C) the aggregate present value, fairly 
                determined, of any other interest in loans made, 
                insured, or guaranteed under this part that are 
                retained by the entity or its subsidiary or affiliate, 
                as determined by the Secretary, in accordance with the 
                accounting measures established under paragraph (3)(A).
            ``(3) Determination of other amounts subject to the fee.--
                    ``(A) Not later than 60 days after the date of 
                enactment of the Student Loan Marketplace Equity Act, 
                the Secretary shall establish accounting measures to be 
                used to determine the types of loans and the loan 
                amounts (and retained interests therein), that shall be 
                subject to the special fee under paragraph (2), and 
                shall publish such measures in the Federal Register.
                    ``(B) The Secretary shall make the determination 
                under paragraph (2) within 60 days of the date of 
                enactment of the Student Loan Marketplace Equity Act 
                (notwithstanding the provisions of section 492), and 
                annually thereafter.
            ``(4) Effective date.--This subsection shall be effective 
        for loans held by the entity described in paragraph (1) on or 
        after the date of enactment of the Student Loan Marketplace 
        Equity Act.
            ``(5) Definition of dominant lender.--For the purposes of 
        this subsection, the term `dominant lender under this part' 
        means the entity whose portfolio of interests in student loans 
        has the greatest value, as determined annually by the 
        Secretary.''.
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