[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4797 Introduced in House (IH)]
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117th CONGRESS
1st Session
H. R. 4797
To direct the Secretary of Education to discharge up to $50,000 of
Federal student loan debt for each borrower, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
July 29, 2021
Mr. Carter of Louisiana introduced the following bill; which was
referred to the Committee on Education and Labor, and in addition to
the Committees on Ways and Means, and the Judiciary, 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 discharge up to $50,000 of
Federal student loan debt for each borrower, 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 Loan Relief Act''.
SEC. 2. LOAN DISCHARGE.
(a) In General.--Subject to subsection (f), not later than the date
that is 12 months after the date of enactment of this Act, the
Secretary of Education shall discharge the qualified loan amount of
each individual, without regard to the repayment status of the loan or
whether the loan is in default.
(b) Qualified Loan Amount.--The qualified loan amount of an
individual is an amount equal to the lesser of--
(1) $50,000; and
(2) the aggregate loan obligation on the eligible Federal
loans of the taxpayer that is outstanding on the date of
enactment of this Act.
(c) Method of Loan Discharge.--
(1) In general.--To provide the loan discharge required
under subsection (a), the Secretary is authorized to carry out
a program--
(A) through the holder of the loan, to assume the
obligation to repay the qualified loan amount for 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) to cancel the qualified loan amount for a loan
made under part D of title IV of the Higher Education
Act of 1965 (20 U.S.C. 1087a et seq.), or assigned,
referred, or transferred to, or purchased by, the
Secretary under such title IV (20 U.S.C. 1070 et seq.);
and
(C) through the institution of higher education
that made the loan from its student loan fund
established under part E of such title (20 U.S.C.
1087aa et seq.), to assume the obligation to repay the
qualified loan amount for such loan.
(2) Order of loan discharge.--With respect to an individual
with at least 2 eligible Federal loans, the Secretary shall
discharge the loans of the individual as follows (except as
otherwise indicated by the individual):
(A) In the case in which the individual has loans
with different rates of interest, the loans should be
discharged in descending order by rate of interest.
(B) In the case in which the individual has loans
with the same rates of interest, the loans should be
discharged in descending order by amount of outstanding
principal.
(d) Exclusion From Taxable Income.--For purposes of the Internal
Revenue Code of 1986, in the case of an individual, gross income does
not include any amount which (but for this subsection) would be
includible in gross income by reason of the discharge (in whole or in
part) of any loan if such discharge was pursuant to this Act.
(e) Taxpayer Information.--
(1) In general.--The Secretary of the Treasury may, upon
written request from the Secretary of Education, disclose to
officers and employees of the Department of Education return
information with respect to a taxpayer who has received
eligible Federal loans that are outstanding on the date of
enactment of this Act. Such return information shall be limited
to--
(A) taxpayer identity information with respect to
such taxpayer;
(B) the filing status of such taxpayer; and
(C) the adjusted gross income of such taxpayer.
(2) Restriction on use of disclosed information.--Return
information disclosed under paragraph (1) may be used by
officers and employees of the Department of Education only for
the purposes of, and to the extent necessary in, establishing
the appropriate qualified loan amount of a taxpayer.
(f) Long-Term Settle and Compromise Discharge Authority.--Not later
than the date that is 24 months after the date of enactment of this
Act, the Secretary of Education may use the authority under sections
432(a)(6) and 468(2) of the Higher Education Act of 1965 (20 U.S.C.
1082(a)(6); 1087hh(2)) to discharge loans under this section beyond the
period described in subsection (a) for--
(1) an individual who, through an appeals process
established by the Secretary, successfully appeals a loan
discharge determination by the Secretary under this section;
(2) an individual who, due to special circumstances, misses
a deadline established by the Secretary in the administration
of loan discharges under this section; or
(3) an individual (or a group of individuals) who the
Secretary determines should have received a loan discharge or a
discharge amount that is different from the amount of loan
discharge received under this section, except that a loan
discharge amount received under this subsection may not exceed
the qualified loan amount determined for the individual (or the
group of individuals) under subsection (b).
(g) Credit Reporting.--In the case of a borrower of an eligible
Federal loan that was in default prior to being discharged under this
section and on which, as a result of such loan discharge, there is no
outstanding balance of principal or interest, the Secretary, guaranty
agency or other holder of the loan shall request any consumer reporting
agency to which the Secretary, guaranty agency or holder, as
applicable, reported the default of the loan, to remove the record of
the default from the borrower's credit history.
(h) Members of Congress.--In this section, the terms ``individual''
and ``taxpayer'' do not include a Member of Congress.
SEC. 3. AUTOMATIC ADMINISTRATIVE FORBEARANCE; HALTING OF WAGE
GARNISHMENT.
During the period beginning on the date of enactment of this Act
and ending on the date that is 12 months after such date of enactment,
the Secretary of Education--
(1) shall place each borrower of an eligible Federal loan
with an outstanding balance, without any further action
required by the borrower (except that the borrower may opt-out
of this section), on an administrative forbearance during which
periodic installments of principal need not be paid, and
interest shall not accrue, on such loan; and
(2) may not issue an order for wage garnishment or
withholding under section 488A of the Higher Education Act of
1965 (20 U.S.C. 1095a) or section 3720D of title 31, United
States Code, initiate proceedings to collect debt through
deductions from pay under such section 488A or 3720D, or
enforce or otherwise require compliance with a wage garnishment
or withholding order issued under such section 488A or 3720D
before the date of enactment of this Act (which shall include
staying any related proceedings).
SEC. 4. STAYING AND PROHIBITION ON COMMENCEMENT OF ACTIONS FOR
COLLECTION.
Until 12 months after the date of enactment of this Act, no
eligible Federal loan may be referred to the Attorney General for any
action seeking collection of any amount owed on that loan and any
action pending as of the date of enactment of this Act shall be stayed.
SEC. 5. INELIGIBILITY FOR TREASURY OFFSET.
Until 12 months after the date of enactment of this Act, no claim
pertaining to an eligible Federal loan may be certified under section
3716(c)(1) of title 31, United States Code.
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