A bill to amend the Higher Education Act of 1965.

Amends the Higher Education Act of 1965 to require the disbursement of funds borrowed by a student under the guaranteed student loan program or the federally-insured student loan program to the institution by check or other means that is payable to and requires endorsement or other certification by such student. Provides that such requirement shall not be interpreted to authorize the Secretary of Education to: (1) require checks to be made co-payable to the institution; or (2) prohibit the disbursement of loan proceeds by means other than by check.