[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7294 Introduced in House (IH)]
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116th CONGRESS
2d Session
H. R. 7294
To suspend Federal Perkins Loans repayments during the COVID-19
pandemic, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
June 22, 2020
Ms. Porter (for herself, Ms. Stefanik, Mrs. Trahan, Ms. Adams, and Mrs.
Lee of Nevada) introduced the following bill; which was referred to the
Committee on Education and Labor, and in addition to the Committees on
the Judiciary, 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 suspend Federal Perkins Loans repayments 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 ``COVID-19 Perkins Loan Relief Act''.
SEC. 2. LOWERING RATES FOR BORROWERS WITH FEDERAL PERKINS LOANS.
(a) Suspension of Interest.--
(1) Suspension of interest.--The Secretary of Education
shall require holders of Federal Perkins Loans to suspend the
accrual of interest on such loans during the COVID-19 pandemic.
(2) Requirements.--Under the program and effective as of
March 13, 2020, all holders of Federal Perkins Loans shall--
(A) provide that no interest shall accrue on
Federal Perkins Loans until September 30, 2020; and
(B) provide a report to the Secretary of Education
not later than 30 days after the date of the enactment
of this Act confirming that no interest has accrued on
such loans as of March 13, 2020.
(3) Repayment of interest.--The Secretary of Education
shall make payments to the holders of Federal Perkins Loans on
behalf of each borrower of such a Federal Perkins Loan in an
amount equal to the total amount of the interest suspended
under paragraph (1) with respect to such Federal Perkins Loan.
(b) Suspension of Payments.--
(1) In general.--Notwithstanding any other provision of the
Higher Education Act of 1965 (20 U.S.C. 1071 et seq.), the
Secretary of Education shall require institutions of higher
education to suspend all payments due from borrowers through
September 30, 2020.
(2) Consideration of payments.--Notwithstanding any other
provision of the Higher Education Act of 1965 (20 U.S.C. 1001
et seq.), the Secretary of Education shall deem each month for
which a loan payment was suspended under this subsection as if
the borrower of the loan had made a qualified payment for the
purpose of any loan forgiveness program and loan rehabilitation
program authorized under the Higher Education Act of 1965 (20
U.S.C. 1071 et seq.).
(3) Reporting to consumer reporting agencies.--During the
period in which the borrower payments on a loan are suspended
under this subsection, the Secretary of Education shall ensure
that, for the purpose of reporting information about the loan
to a consumer reporting agency, any payment that has been
suspended is treated as if it were a regularly scheduled
payment made by a borrower.
(c) Suspension of Involuntary Collection.--
(1) Collection by institutions.--Notwithstanding any other
provision of the Higher Education Act of 1965 (20 U.S.C. 1071
et seq.), the Secretary of Education shall require that
institutions of higher education to suspend all involuntary
collection related to Federal Perkins Loans, through September
30, 2020, including collecting a past due Federal Perkins Loan,
assign any Federal Perkins Loan to a collection agency, or
litigating with respect to such loan.
(2) Collection by secretary.--During the period beginning
on the date of the enactment of this section and ending on
September 30, 2020, the following provisions may not apply with
respect to a Federal Perkins Loan:
(A) A wage garnishment authorized under section
488A of the Higher Education Act of 1965 (20 U.S.C.
1095a) 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, or section 6402(d) of the Internal Revenue
Code of 1986.
(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).
(D) Any other involuntary collection activity by
the Secretary of Education.
(d) Notice to Borrowers and Transition Period.--To inform borrowers
of the actions taken in accordance with this section and ensure an
effective transition, the Secretary of Education shall require
institutions of higher education to--
(1) not later than 15 days after the date of the enactment
of this Act, notify borrowers--
(A) of the actions taken in accordance with this
section for whom payments have been suspended and no
interest shall accrue;
(B) of the actions taken in accordance with
subsection (c) for whom collections have been
suspended;
(C) of the option to continue making payments
toward principal; and
(D) that the program under this section shall only
be provided during the COVID-19 pandemic; and
(2) beginning on August 1, 2020, carry out a program to
provide not less than 6 notices by postal mail, telephone, or
electronic communication to borrowers indicating when the
borrower's normal payment obligations will resume.
(e) Waivers.--In carrying out this section, the Secretary of
Education may waive the application of--
(1) subchapter I of chapter 35 of title 44, United States
Code (commonly known as the ``Paperwork Reduction Act'');
(2) the master calendar requirements under section 482 of
the Higher Education Act of 1965 (20 U.S.C. 1089);
(3) negotiated rulemaking under section 492 of the Higher
Education Act of 1965 (20 U.S.C. 1098a); 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 this Act.
(f) Effective Date.--This section shall take effect as if included
in the enactment of the CARES Act (Public Law 116-136).
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