[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6316 Introduced in House (IH)]
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116th CONGRESS
2d Session
H. R. 6316
To provide relief for Federal and private student loan borrowers during
the COVID-19 pandemic, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 23, 2020
Ms. Dean introduced the following bill; which was referred to the
Committee on Education and Labor, and in addition to the Committees on
Financial Services, and Ways and Means, for a period to be subsequently
determined by the Speaker, in each case for consideration of such
provisions as fall within the jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To provide relief for Federal and private student loan borrowers during
the COVID-19 pandemic, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Emergency Relief for Student
Borrowers Act of 2020''.
SEC. 2. PAYMENTS FOR FEDERAL STUDENT LOAN BORROWERS AS A RESULT OF A
NATIONAL EMERGENCY.
(a) In General.--Part G of title IV of the Higher Education Act of
1965 (20 U.S.C. 1088 et seq.) is amended by inserting after section
493D the following:
``SEC. 493E. PAYMENTS FOR STUDENT LOAN BORROWERS DURING THE COVID-19
NATIONAL EMERGENCY.
``(a) Definitions.--In this section:
``(1) Coronavirus.--The term `coronavirus' has the meaning
given the term in section 506 of the Coronavirus Preparedness
and Response Supplemental Appropriations Act, 2020 (Public Law
116-123).
``(2) Income-driven repayment.--The term `income-driven
repayment' means--
``(A) income-based repayment authorized under
section 493C for loans made, insured, or guaranteed
under part B or part D; or
``(B) income contingent repayment authorized under
section 455(e) for loans made under part D.
``(3) Involuntary collection.--The term `involuntary
collection' means--
``(A) a wage garnishment authorized under section
488A of this Act or section 3720D of title 31, United
States Code;
``(B) a reduction of tax refund by amount of debt
authorized under section 3720A of title 31, United
States Code;
``(C) a reduction of any other Federal benefit
payment by administrative offset authorized under
section 3716 of title 31, United States Code (including
a benefit payment due to an individual under the Social
Security Act or any other provision described in
subsection (c)(3)(A)(i) of such section); and
``(D) any other involuntary collection activity.
``(4) COVID-19 emergency period.--For purposes of this Act,
the term `COVID-19 emergency period' means the period that
begins upon the date of the enactment of this Act and ends upon
the date of the termination by the Federal Emergency Management
Administration of the emergency declared on March 13, 2020, by
the President under the Robert T. Stafford Disaster Relief and
Emergency Assistance Act (42 U.S.C. 4121 et seq.) relating to
the Coronavirus Disease 2019 (COVID-19) pandemic.
``(b) COVID-19 National Emergency Student Loan Repayment
Assistance.--
``(1) Authority.--Effective on the date of the enactment of
this section, during the COVID-19 emergency period and the 6-
month period immediately following, the Secretary of Education
shall for each borrower of a loan made, insured, or guaranteed
under part B, D, or E, pay the total amount due for such month
on the loan, based on the payment plan selected by the borrower
or the borrower's loan status.
``(2) No capitalization of interest.--With respect to any
loan in repayment during the COVID-19 national emergency period
and the 6-month period immediately following, interest due on
loans made, insured, or guaranteed under part B, D, or E during
such period shall not be capitalized at any time during the
COVID-19 national emergency period and the 6-month period
immediately following.
``(3) Applicability of payments.--Any payment made by the
Secretary of Education under this section shall be considered
by the Secretary of Education, or by a lender with respect to a
loan made, insured, or guaranteed under part B--
``(A) as a qualifying payment under the public
service loan forgiveness program under section 455(m),
if the borrower would otherwise qualify under such
section;
``(B) in the case of a borrower enrolled in an
income-driven repayment plan, as a qualifying payment
for the purpose of calculating eligibility for loan
forgiveness for the borrower in accordance with section
493C(b)(7) or section 455(d)(1)(D), as the case may be;
and
``(C) in the case of a borrower in default, as an
on-time monthly payment for purposes of loan
rehabilitation pursuant to section 428F(a).
``(4) Reporting to consumer reporting agencies.--During the
period in which the Secretary of Education is making payments
on a loan under paragraph (1), the Secretary shall ensure that,
for the purpose of reporting information about the loan to a
consumer reporting agency, any payment made by the Secretary is
treated as if it were a regularly scheduled payment made by a
borrower.
``(5) Notice of payments and program.--Not later than 15
days following the date of enactment of this section, and
monthly thereafter during the COVID-19 national emergency
period and the 6-month period immediately following, the
Secretary of Education shall provide a notice to all borrowers
of loans made, insured, or guaranteed under part B, D, or E--
``(A) informing borrowers of the actions taken
under this section;
``(B) providing borrowers with an easily accessible
method to opt out of the benefits provided under this
section; and
``(C) notifying the borrower that the program under
this section is a temporary program and will end 6
months after the COVID-19 national emergency period
ends.
``(6) Suspension of involuntary collection.--During the
COVID-19 national emergency period and the 6-month period
immediately following, the Secretary of Education, or other
holder of a loan made, insured, or guaranteed under part B, D,
or E, shall immediately take action to halt all involuntary
collection related to the loan.
``(7) Mandatory forbearance.--During the period in which
the Secretary of Education is making payments on a loan under
paragraph (1), the Secretary, or a lender or guaranty agency
for a loan made under part B, shall grant the borrower
forbearance as follows:
``(A) A temporary cessation of all payments on the
loan other than the payments of interest and principal
on the loan that are made under paragraph (1).
``(B) For borrowers who are delinquent but who are
not yet in default before the date on which the
Secretary begins making payments under paragraph (1),
the retroactive application of forbearance to address
any delinquency.''.
(b) FFEL Amendment.--Section 428(c)(8) of the Higher Education Act
of 1965 (20 U.S.C. 1078(c)(8)) is amended by striking ``and for which''
and all that follows through ``this subsection''.
SEC. 3. PAYMENTS FOR PRIVATE EDUCATION LOAN BORROWERS AS A RESULT OF
THE COVID-19 NATIONAL EMERGENCY.
Section 140 of the Truth in Lending Act (15 U.S.C. 1650) is amended
by adding at the end the following new subsection:
``(h) COVID-19 National Emergency Private Education Loan Repayment
Assistance.--
``(1) Authority.--Effective on the date of the enactment of
this section, for the duration of the COVID-19 emergency period
and the 6-month period immediately following, the Secretary of
the Treasury shall, for each borrower of a private education
loan, pay the total amount due for such month on the loan,
based on the payment plan selected by the borrower or the
borrower's loan status.
``(2) No capitalization of interest.--With respect to any
loan in repayment during the COVID-19 national emergency period
and the 6-month period immediately following, interest due on a
private education loan during such period shall not be
capitalized at any time during the COVID-19 national emergency
period and the 6-month period immediately following.
``(3) Reporting to consumer reporting agencies.--During the
period in which the Secretary of the Treasury is making
payments on a loan under paragraph (1), the Secretary shall
ensure that, for the purpose of reporting information about the
loan to a consumer reporting agency, any payment made by the
Secretary is treated as if it were a regularly scheduled
payment made by a borrower.
``(4) Notice of payments and program.--Not later than 15
days following the date of enactment of this subsection, and
monthly thereafter during the COVID-19 national emergency
period and the 6-month period immediately following, the
Secretary of the Treasury shall provide a notice to all
borrowers of private education loans--
``(A) informing borrowers of the actions taken
under this subsection;
``(B) providing borrowers with an easily accessible
method to opt out of the benefits provided under this
subsection; and
``(C) notifying the borrower that the program under
this subsection is a temporary program and will end 6
months after the COVID-19 national emergency period
ends.
``(5) Suspension of involuntary collection.--During the
COVID-19 national emergency period and the 6-month period
immediately following, the holder of a private education loan
shall immediately take action to halt all involuntary
collection related to the loan.
``(6) Mandatory forbearance.--During the period in which
the Secretary of the Treasury is making payments on a loan
under paragraph (1), the servicer of such loan shall grant the
borrower forbearance as follows:
``(A) A temporary cessation of all payments on the
loan other than the payments of interest and principal
on the loan that are made under paragraph (1).
``(B) For borrowers who are delinquent but who are
not yet in default before the date on which the
Secretary begins making payments under paragraph (1),
the retroactive application of forbearance to address
any delinquency.
``(7) Data to implement.--Holders and servicers of private
education loans shall report, to the satisfaction of the
Secretary of the Treasury, the information necessary to
calculate the amount to be paid under this section.
``(8) COVID-19 emergency period defined.--In this
subsection, the term `COVID-19 emergency period' means the
period that begins upon the date of the enactment of this Act
and ends upon the date of the termination by the Federal
Emergency Management Administration of the emergency declared
on March 13, 2020, by the President under the Robert T.
Stafford Disaster Relief and Emergency Assistance Act (42
U.S.C. 4121 et seq.) relating to the Coronavirus Disease 2019
(COVID-19) pandemic.''.
SEC. 4. MINIMUM RELIEF FOR FEDERAL AND PRIVATE STUDENT LOAN BORROWERS
AS A RESULT OF THE COVID-19 NATIONAL EMERGENCY.
(a) Minimum Student Loan Relief as a Result of the COVID-19
National Emergency.--Not later than 270 days after the last day of the
COVID-19 emergency period, the Secretaries concerned shall jointly
carry out a program under which a qualified borrower, with respect to
the covered loans and private education of loans of such qualified
borrower, shall receive in accordance with subsection (c) an amount
equal to the lesser of the following:
(1) The total amount of each covered loan and each private
education loan of the borrower; or
(2) $10,000.
(b) Notification of Borrowers.--Not later than 270 days after the
last day of the COVID-19 emergency period, the Secretaries concerned
shall notify each qualified borrower of--
(1) the requirements to provide loan relief to such
borrower under this section; and
(2) the opportunity for such borrower to make an election
under subsection (c)(1) with respect to the application of such
loan relief to the covered loans and private education loans of
such borrower.
(c) Distribution of Funding.--
(1) Election by borrower.--Not later than 45 days after a
notice is sent under subsection (b), a qualified borrower may
elect to apply the amount determined with respect to such
borrower under subsection (a) to--
(A) any covered loan of the borrower;
(B) any private education loan of the borrower; and
(C) any combination of the loans described in
subparagraphs (A) and (B).
(2) Automatic payment.--
(A) In general.--In the case of a qualified
borrower who does not make an election under paragraph
(1) before the date described in such paragraph, the
Secretaries concerned shall apply the amount determined
with respect to such borrower under subsection (a) in
order of the covered loan or private education loan of
the qualified borrower with the highest interest rate.
(B) Equal interest rates.--In case of two or more
covered loans or private education loans described in
subparagraph (A) with equal interest rates, the
Secretaries concerned shall apply the amount determined
with respect to such borrower under subsection (a)
first to the loan with the highest principal.
(d) Data To Implement.--
(1) Secretary of education.--Contractors of the Secretary
of Education and lenders and guaranty agencies holding loans
made, insured, or guaranteed under part B shall report, to the
satisfaction of the Secretary of Education, the information
necessary to calculate the amount to be applied under
subsection (a).
(2) Secretary of treasury.--Holders and servicers of
private education loans shall report, to the satisfaction of
the Secretary of the Treasury, the information necessary to
calculate the amount to be applied under subsection (a).
(e) Memorandum of Understanding.--The Secretaries concerned shall
enter into a memorandum of understanding to carry out this section.
(f) Definitions.--In this section:
(1) Covered loan.--The term ``covered loan'' means--
(A) a loan made, insured, or guaranteed under part
B of title IV of the Higher Education Act of 1965 (20
U.S.C. 1071 et seq.);
(B) a loan made under part D of title IV of the
Higher Education Act of 1965 (20 U.S.C. 1087a et seq.);
and
(C) a Federal Perkins Loan made pursuant to part E
of title IV of the Higher Education Act of 1965 (20
U.S.C. 1087aa et seq.).
(2) COVID-19 emergency period.--For purposes of this Act,
the term ``COVID-19 emergency period'' means the period that
begins upon the date of the enactment of this Act and ends upon
the date of the termination by the Federal Emergency Management
Administration of the emergency declared on March 13, 2020, by
the President under the Robert T. Stafford Disaster Relief and
Emergency Assistance Act (42 U.S.C. 4121 et seq.) relating to
the Coronavirus Disease 2019 (COVID-19) pandemic.
(3) Private education loan.--The term ``private education
loan'' has the meaning given the term in section 140 of the
Truth in Lending Act (15 U.S.C. 1650).
(4) Qualified borrower.--The term ``qualified borrower''
means a borrower of a covered loan or a private education loan.
(5) Secretaries concerned.--The term ``Secretaries
concerned'' means--
(A) the Secretary of Education, with respect to
covered loans and borrowers of such covered loans; and
(B) the Secretary of the Treasury, with respect to
private education loans and borrowers of such private
education loans.
SEC. 5. INCOME SHARE AGREEMENTS.
(a) In General.--An individual who entered into an income share
agreement to pay for education expenses of the individual shall not be
required to make payments under such income share agreement for the
duration of the COVID-19 emergency period and the 6-month period
immediately following.
(b) COVID-19 Emergency Period.--In this section, the term ``COVID-
19 emergency period'' means the period that begins upon the date of the
enactment of this Act and ends upon the date of the termination by the
Federal Emergency Management Administration of the emergency declared
on March 13, 2020, by the President under the Robert T. Stafford
Disaster Relief and Emergency Assistance Act (42 U.S.C. 4121 et seq.)
relating to the Coronavirus Disease 2019 (COVID-19) pandemic.
SEC. 6. EXCLUSION FROM GROSS INCOME.
(a) In General.--Part III of subchapter B of chapter 1 of the
Internal Revenue Code of 1986 is amended by inserting after section
139H the following new section:
``SEC. 139I. STUDENT LOAN PAYMENTS RESULTING FROM THE COVID-19 NATIONAL
EMERGENCY.
``Gross income shall not include any payment made on behalf of the
taxpayer under section 493E(b)(1) of the Higher Education Act of 1965,
section 140(h) of the Truth in Lending Act, or section 4 of the
Emergency Relief for Student Borrowers Act of 2020.''.
(b) Clerical Amendment.--The table of sections for part III of
subchapter B of chapter 1 of the Internal Revenue Code of 1986 is
amended by inserting after the item relating to section 139H the
following new item:
``Sec. 139I. Student loan payments resulting from the COVID-19 national
emergency.''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2019.
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