Student Loans and FY2006 Budget Reconciliation

Publication Date: October 2005

Publisher: Library of Congress. Congressional Research Service

Author(s):

Research Area: Banking and finance

Type:

Abstract:

The FY2006 budget resolution (H.Con.Res 95, H.Rept. 109-62) contains reconciliation instructions that require authorizing committees to report legislation to reduce mandatory spending by $34.7 billion over a five-year period. The House Committee on Education and the Workforce is responsible for a reduction of $12.7 billion for FY2006 through FY2010. The Senate Committee on Health, Education, Labor, and Pensions is responsible for a reduction of $13.7 billion over that period. Authorizing committees were initially required to report to the budget committees by September 16, 2005. However, reconciliation action has been postponed until October. The Higher Education Act (HEA) reauthorization and budget reconciliation processes have become intertwined. Each of the aforementioned authorizing committees has marked up a comprehensive HEA reauthorization bill containinig provisions that generate substantial net savings in mandatory spending on the student loan programs. This report will be updated.