Guaranteed Student Loan Reform Act

Guaranteed Student Loan Reform Act - Amends part B (Federal, State, and Private Programs of Low-Interest Insured Loans to Students in Institutions of Higher Education) of title IV of the Higher Education Act of 1965 to require student borrowers to make in-school interest payments under the guaranteed student loan (GSL) program.

Revises income limitations for the GSL program. Limits to borrowing only according to financial need those students from families whose adjusted gross income is over $25,000 (currently, $30,000). Prohibits borrowing by students from families with adjusted gross incomes over $40,000, with adjustments for family size.

Replaces GSL program provisions for Federal interest subsidy payments with provisions for student borrower in-school interest payments and revises accordingly the terms of agreements with States and nonprofit private institutions.

Adds the amount of the in-school interest payment to the amount of the maximum Federal loan insurance limitations for undergraduate students and for graduate or professional students under the GSL program.

Makes technical and conforming amendments.

Provides that the amendments made by this Act shall take effect October 1,1982. Directs the Secretary of Education to pay the required interest subsidies to holders of loans made prior to such effective date under the GSL program and authorizes appropriations necessary for such payments.