[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6363 Introduced in House (IH)]
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116th CONGRESS
2d Session
H. R. 6363
To amend the Higher Education Act of 1965 to halt collection of certain
student loans, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 23, 2020
Ms. Pressley (for herself, Ms. Omar, Mr. Richmond, Mr. Welch, Ms.
Norton, Ms. Velazquez, Ms. Castor of Florida, Mr. Rush, Mr. Garcia of
Illinois, Mr. Deutch, Ms. Tlaib, Ms. Clarke of New York, Ms.
Schakowsky, Mr. Nadler, Mrs. Napolitano, Ms. Ocasio-Cortez, Mr.
Grijalva, Mr. Carson of Indiana, Mr. Pocan, and Ms. Lee of California)
introduced the following bill; which was referred to the Committee on
Education and Labor, and in addition to the Committee on 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 amend the Higher Education Act of 1965 to halt collection of certain
student loans, 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 ``Student Debt Emergency Relief Act''.
SEC. 2. PAYMENTS FOR STUDENT LOAN BORROWERS AS A RESULT OF A NATIONAL
EMERGENCY.
(a) Payments for Student Loan Borrowers During a National
Emergency.--
(1) 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 A 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) National emergency.--The term `national emergency'
means--
``(A) a public health emergency related to the
coronavirus that is declared by the Secretary of Health
and Human Services pursuant to section 319 of the
Public Health Service Act (42 U.S.C. 247d); or
``(B) a national emergency related to the
coronavirus declared by the President under the
National Emergencies Act (50 U.S.C. 1601 et seq.).
``(b) National Emergency Student Loan Repayment Assistance.--
``(1) Authority.--Upon the declaration of a national
emergency, the Secretary 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 during a national emergency period, 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 or after the
national emergency.
``(3) Applicability of payments.--Any payment made by the
Secretary under this section shall be considered by the
Secretary, 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 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 the Student Debt
Emergency Relief Act, and monthly thereafter during the period
of a national emergency, the Secretary 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 after
the national emergency ends.
``(6) Suspension of involuntary collection.--In the event
of a national emergency, the Secretary, 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 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, in the form
of a temporary cessation of all payments on the loan other than
the payments of interest and principal on the loan that are
made under that paragraph. In the case of a borrower who is
delinquent but who is not yet in default prior to the time when
the Secretary begins making payments under paragraph (1), the
Secretary, or a lender or guaranty agency for a loan made under
part B, shall grant the borrower forbearance retroactively to
address any such delinquency.
``(c) Waiver of Interest During National Emergency.--
Notwithstanding any other provision of law, the Secretary shall pay any
interest that would otherwise be charged or accrue during a national
emergency on any loan made, insured, or guaranteed under part B, D, or
E.
``(d) Termination and Transition Period.--Secretary shall make
payments on a loan under subsection (b)(1) until the Secretary is
authorized by Congress to cease making such payments and to terminate
the program. Upon the termination of the authority of the Secretary to
make payments on a loan under subsection (b)(1), the Secretary shall
carry out a program to provide for a transition period of 90 days,
beginning on the day the termination of the authority of the Secretary
to make payments on a loan under subsection (b)(1), during which--
``(1) the Secretary shall provide not less than 3 notices
to borrowers indicating when the borrower's normal payment
obligations will resume; and
``(2) any missed payments by a borrower under part B, D, or
E shall not--
``(A) result in fees or penalties; or
``(B) be reported to any consumer reporting agency
or otherwise impact the borrower's credit history.
``(e) Implementation in FFEL Entities.--To facilitate
implementation of this section--
``(1) lenders and guaranty agencies holding loans made,
insured, or guaranteed under part B shall report, to the
satisfaction of the Secretary, information to verify at the
borrower level the amount of payments made under this section;
and
``(2) the Secretary shall have the authority to establish a
payment schedule for purposes of this section for loans made,
insured, or guaranteed under part B and not held by the
Secretary.
``(f) Waivers.--In carrying out this section, the Secretary may
waive the application of--
``(1) subchapter I of chapter 35 of title 44, United States
Code;
``(2) the master calendar requirements under section 482;
``(3) negotiated rulemaking under section 492; and
``(4) the requirement to publish the notices related to the
system of records of the agency before implementation required
under paragraphs (4) and (11) of section 552a(e) of title 5,
United States Code (commonly known as the `Privacy Act of
1974'), except that the notices shall be published not later
than 180 days after the date of enactment of the Student Debt
Emergency Relief Act.
``(g) Authorization of Mandatory Funding for Implementation.--
``(1) In general.--There are authorized to be appropriated,
and there are appropriated, from amounts in the Treasury not
already appropriated--
``(A) $50,000,000 for fiscal year 2020 for the
costs associated with implementation and coordination
required of this section; and
``(B) such sums as are necessary to provide the
payments and interest cancellation provided under this
section.
``(2) Availability.--Amounts made available under paragraph
(1) shall--
``(A) be in addition to any other amounts available
to carry out this section; and
``(B) remain available until expended.''.
(2) 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''.
(b) Minimum Relief for Student Loan Borrowers as a Result of a
National Emergency.--Part G of title IV of the Higher Education Act of
1965 (20 U.S.C. 1088 et seq.), as amended by subsection (a), is further
amended by inserting after section 493E the following:
``SEC. 493F. MINIMUM RELIEF FOR STUDENT LOAN BORROWERS AS A RESULT OF A
NATIONAL EMERGENCY.
``(a) Minimum Student Loan Relief as a Result of a National
Emergency.--Not later than 90 days after termination of the authority
of the Secretary to make payments on a loan under section 493(E)(b)(1),
the Secretary shall, for each borrower of a loan made under part B, D,
or E, apply to the total outstanding balance due on all such loans of
the borrower, an amount equal to the lesser of--
``(1) the difference between $30,000 and the total amount
of payments made by the Secretary under section 493E(b) on such
loans of the borrower during the period of time when the
Secretary was authorized to make payments on a loan under
section 493E(b)(1); or
``(2) the total amount of outstanding principal and
interest due on such loans of the borrower, as of the date of
the calculation under this subsection.
``(b) Data To Implement.--Contractors of the Secretary and lenders
and guaranty agencies holding loans made, insured, or guaranteed under
part B shall report, to the satisfaction of the Secretary, the
information necessary to calculate the amount to be applied under
subsection (a).''.
SEC. 3. 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 A NATIONAL EMERGENCY.
``Gross income shall not include any payment made on behalf of the
taxpayer under section 493E(b)(1) or 493F of the Higher Education Act
of 1965.''.
(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 a 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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