[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2034 Introduced in House (IH)]
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117th CONGRESS
1st Session
H. R. 2034
To direct the Secretary of Education to forgive the Federal student
loans of borrowers meeting certain income requirements, and for other
purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 18, 2021
Mr. Lawson of Florida 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 direct the Secretary of Education to forgive the Federal student
loans of borrowers meeting certain income requirements, 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 ``Income-Driven Student Loan
Forgiveness Act''.
SEC. 2. FEDERAL STUDENT LOAN FORGIVENESS FOR BORROWERS MEETING CERTAIN
INCOME REQUIREMENTS.
(a) Forgiveness Required.--Notwithstanding any other provision of
law, the Secretary of Education shall forgive the outstanding balance
of principal, interest, and fees due on the eligible Federal student
loans of borrowers who meet the requirements of subsection (b).
(b) Eligibility.--
(1) In general.--A borrower is eligible to receive
forgiveness under this section if, at the time of application
for forgiveness, such borrower--
(A) has an eligible Federal student loan in
repayment;
(B) filed a Federal income tax return for the most
recently ended tax year;
(C)(i) is employed; or
(ii) if not employed, was employed during the
period of three years immediately preceding March 1,
2020; and
(D) meets the income requirements specified in
paragraph (2).
(2) Income requirements.--The income requirements specified
in this subsection are the following:
(A) In the case of borrower who is not married, the
adjusted gross income of the borrower does not exceed
$100,000.
(B) In the case of a borrower who is married and
files a Federal income tax return jointly with the
borrower's spouse, the adjusted gross income of the
borrower and the borrower's spouse does not exceed
$200,000.
(C) In the case of a borrower who is married and
files a Federal income tax return separately from the
borrower's spouse, the adjusted gross income of the
borrower does not exceed $100,000. The income of a
borrower's spouse shall not be considered in making the
determination under this subparagraph.
(3) Return information.--The determinations under paragraph
(2) shall be based on the Federal income tax return filed by
the borrower for the most recent tax year ending before the
date of the borrower's application for forgiveness under this
section.
(c) Method of Loan Forgiveness.--As soon as practicable after the
Secretary of Education confirms that an applicant meets the
requirements of subsection (b), the Secretary of Education shall--
(1) for each eligible Federal student loan of the borrower
that is held by the Department of Education, cancel the
outstanding balance of principal, interest, and fees due on the
loan; and
(2) for each eligible Federal student loan of the borrower
that is not held by the Department of Education--
(A) through the holder of a loan, assume the
obligation to repay the outstanding balance of
principal, interest, and fees due on the loan; and
(B) upon assuming such obligation, cancel the
outstanding balance of such principal, interest, and
fees.
(d) Application.--To be eligible to receive forgiveness under this
section a borrower shall submit to the Secretary of Education an
application at such time, in such manner, and containing such
information as the Secretary may require.
(e) Repayment Refunds Prohibited.--Nothing in this section shall be
construed to authorize the refund of any payments made by a borrower on
an eligible Federal student before the date on which the borrower's
loans are forgiven in accordance with this section.
(f) Exclusion From Taxable Income.--The amount of a borrower's
eligible Federal student loans forgiven under this section shall not be
included in the gross income of the borrower for purposes of the
Internal Revenue Code of 1986.
(g) Determination of Ineligibility.--If the Secretary of Education
denies a borrower's application for forgiveness under this section, the
Secretary shall notify the borrower that the borrower's application was
denied and indicate the specific reasons for such denial.
SEC. 3. NOTICE TO THE PUBLIC.
Not later than 15 days after the date of enactment of this Act, the
Secretary of Education, in consultation with institutions of higher
education and lenders and holders of Federal student loans, shall take
such actions as may be necessary to ensure that borrowers who have
outstanding eligible Federal student loans are aware of the loan
forgiveness program authorized by this Act. Such information shall--
(1) be presented in a form that is widely available to the
public, especially to borrowers with eligible Federal student
loans;
(2) be easily understandable; and
(3) clearly notify borrowers that to be considered for loan
forgiveness under this Act, borrowers must submit an
application to the Secretary of Education.
SEC. 4. DEFINITIONS.
In this Act:
(1) Adjusted gross income.--The term ``adjusted gross
income'' has the meaning given that term in section 62 of the
Internal Revenue Code of 1986 (26 U.S.C. 62).
(2) Eligible federal student loan.--The term ``eligible
Federal student loan'' means a loan--
(A) received by a borrower before the date of
enactment of this Act;
(B) used to pay for--
(i) the undergraduate education of the
borrower; or
(ii) in the case of a loan made to a parent
on behalf a dependent student, the
undergraduate education of such dependent
student; and
(C) made, insured, or guaranteed under--
(i) part B, part D, or part E of title IV
of the Higher Education Act of 1965 (20 U.S.C.
1070 et seq.), including a consolidation loan
(to the extent that such consolidation loan was
used to repay loans for undergraduate
education); or
(ii) part E of title VIII of the Public
Health Service Act.
(3) Fees.--The term ``fees'' means any amounts owed by a
borrower, other than principal and interest, on an eligible
Federal student loan, including the amounts of any outstanding
administrative fees, late charges, and collection costs.
(4) Institution of higher education.--The term
``institution of higher education'' has the meaning given that
term in section 102 of the Higher Education Act of 1965 (20
U.S.C. 1002).
(5) Undergraduate education.--The term ``undergraduate
education'' means a postsecondary program of study at an
institution of higher education that leads to an associate or
baccalaureate degree.
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