Summary of Provisions in the College Cost Reduction and Access Act of 2007
(HR2669, as amended and passed)
FINAL
Program Issue / Topic
Provisions
Special Allowance Payment
(SAP)
• Reduces lenders SAP by 55 basis points for Stafford loans and consolidation loans originated by
for-profit lenders and 85 basis points for PLUS loans originated by for-profit lenders. (sec. 305)
(effective loans disbursed on or after 10/1/07)
• Reduces the SAP by 40 basis points for Stafford loans and consolidation loans originated by not-
for-profit lenders; 70 basis points for PLUS loans originated by not-for-profit lenders (Sec. 305)
(effective loans disbursed on or after 10/1/07).
• Defines a not-for-profit loan holder to include a lender that is state, political subdivision, agency,
an entity with not-for-profit status, or a trustee acting as an eligible lender, etc. (Clarifies that no
eligible not-for-profit holder shall be owned or controlled by a for-profit entity and other
clarifications.) (sec. 304) (effective upon enactment)
• Requires that the Secretary promulgate regulations implementing this provision no later than one
year after the date of enactment. (Sec. 304) (effective upon enactment)
Exceptional Performer
Eliminates exceptional performer status for lenders, which permitted certain lenders that met minimum
performance standards to receive 99 percent of the unpaid principal of defaulted loans (Sec. 302)
(effective 10/1/07, but current EP holders retain designation for the remainder of the year for which the
designation was made)
Guarantee Agency Collection
Retention
Reduces guaranty agency collection retention to 16% from 23% (Sec. 301) (effective 10/1/07)
Lender Insurance
Reduces lender insurance (the amount that the government reimburses lenders on defaulted loans) to
95% of the unpaid principal of loans in 2012. (Sec. 303) (effective loans made on or after 10/1/12)
Account Maintenance Fees,
Delinquency Fees, Loan
Processing and Iss