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Subtitle B—Federal Pell Grant and Student Loan Program Changes

SEC. 251. FEDERAL PELL GRANT AND STUDENT LOAN PROGRAM CHANGES.

(a) Federal Pell Grants- Section 401(b)(7)(A)(iv) of the Higher Education Act of 1965 (20 U.S.C. 1070a(b)(7)(A)(iv)) is amended—

(1) in subclause (II), by striking ‘$3,183,000,000’ and inserting ‘$13,683,000,000’; and

(2) in subclause (III), by striking ‘$0’ and inserting ‘$7,500,000,000’.

(b) Termination of Authority To Make Interest Subsidized Loans to Graduate and Professional Students- Section 455(a) of the Higher Education Act of 1965 (20 U.S.C. 1087e(a)) is amended by adding at the end the following:

‘(3) TERMINATION OF AUTHORITY TO MAKE INTEREST SUBSIDIZED LOANS TO GRADUATE AND PROFESSIONAL STUDENTS- Notwithstanding any provision of this part or part B, for any period of instruction beginning on or after July 1, 2012—

‘(A) a graduate or professional student shall not be eligible to receive a subsidized Federal Direct Stafford Loan under this part;

‘(B) the maximum annual amount of Federal Direct Unsubsidized Stafford Loans such a student may borrow in any academic year (as defined in section 481(a)(2)) or its equivalent shall be the maximum annual amount for such student determined under section 428H, plus an amount equal to the amount of Federal Direct Subsidized Loans the student would have received in the absence of this paragraph; and

‘(C) the maximum aggregate amount of Federal Direct Unsubsidized Stafford Loans such a student may borrow shall be the maximum aggregate amount for such student determined under section 428H, adjusted to reflect the increased annual limits described in subparagraph (B), as prescribed by the Secretary by regulation.’.

(c) Inapplicability of Title IV Negotiated Rulemaking and Master Calendar Exception- Sections 482(c) and 492 of the Higher Education Act of 1965 (20 U.S.C. 1089(c), 1098a) shall not apply to the amendments made by this section, or to any regulations promulgated under those amendments.