A bill to protect students receiving Federal financial assistance against losses resulting from the closing of certain private educational institutions.
Student Loan Protection Act - Provides that no Federal student loan or federally insured student loan may be made to an individual to assist that individual to attend a new private educational institution; and that no veterans educational allowance may be paid to an individual attending a new private educational institution, unless the private educational institution has provided assurances satisfactory to the Secretary (by the posting of a bond or otherwise) that, in the event such institution ceases operations, it will make the payments required by this Act with respect to each individual then attending such institution with the assistance of a Federal student loan or a federally insured student loan or who is receiving a veterans educational allowance.
States that the amount to be paid with respect to an individual under this Act is an amount equal to the expenses paid by such individual to enable him to attend such institution during the academic period in which such institution ceases operations.
Provides for additonal protection to losses not covered by such guarantees.
Authorizes necessary appropriations to carry out the provisions of this Act.
Introduced in Senate
Referred to Senate Committee on Labor and Public Welfare.
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