[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6125 Introduced in House (IH)]
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117th CONGRESS
1st Session
H. R. 6125
To authorize the Secretary of Education to discharge or cancel Federal
student loan liability for borrowers of disaster loans under section
7(b) of the Small Business Act made on or after January 1, 2020, and
for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
December 2, 2021
Mr. Carter of Louisiana introduced the following bill; which was
referred to the Committee on Education and Labor
_______________________________________________________________________
A BILL
To authorize the Secretary of Education to discharge or cancel Federal
student loan liability for borrowers of disaster loans under section
7(b) of the Small Business Act made on or after January 1, 2020, 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 ``No Double Debt for Disaster
Survivors Act of 2021''.
SEC. 2. TREATMENT OF LOANS FOR SBA DISASTER LOAN RECIPIENTS.
(a) Discharge for SBA Disaster Loan Recipients.--
(1) FFEL and federal direct loans.--Section 437 of the
Higher Education Act of 1965 (20 U.S.C. 1087) is amended--
(A) in the section header, by inserting ``; other
repayment'' before the period; and
(B) by adding at the end the following new
subsection:
``(e) Loans of SBA Disaster Loan Recipients.--If a borrower who
received a loan made, insured, or guaranteed under this part also
received, on or after January 1, 2020, a loan made under section 7(b)
of the Small Business Act (15 U.S.C. 636(b)), the Secretary shall
discharge the borrower's liability on the loan under this part by
repaying the lesser of--
``(1) the amount owed on the loan under this part; or
``(2) an amount owed on the loan under this part that is
equal to the amount of the loan received by the borrower that
is made under section 7(b) of the Small Business Act (15 U.S.C.
636(b)).''.
(2) Perkins loans.--Section 464(c)(1)(F) of the Higher
Education Act of 1965 (20 U.S.C. 1087dd(c)(1)(F)) is amended--
(A) by moving clauses (i) through (iv) two ems to
the left;
(B) by striking ``or'' at the end of clause (iii);
(C) by inserting ``or'' after the semicolon in
clause (iv); and
(D) by adding at the end the following new clause:
``(v) if the borrower received, on or after
January 1, 2020, a loan made under section 7(b)
of the Small Business Act (15 U.S.C. 636(b)),
except that the amount of liability to repay a
loan that is cancelled under this clause shall
not exceed the amount of the loan made under
section 7(b) of the Small Business Act (15
U.S.C. 636(b)) that is received by the
borrower;''.
(b) Procedures for Discharge for SBA Disaster Loan Recipients.--
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. PROCEDURES FOR DISCHARGE FOR SBA DISASTER LOAN RECIPIENTS.
``(a) Procedures.--The Secretary, in consultation with the
Administrator of the Small Business Administration, shall develop and
implement a procedure to--
``(1) identify borrowers of loans under part B, part D, and
part E of this title who have received, on or after January 1,
2020, a loan made under section 7(b) of the Small Business Act
(15 U.S.C. 636(b));
``(2) provide any certifications or affidavits needed to
enable such borrowers to document eligibility for discharge or
cancellation of student loans made, insured, or guaranteed
under part B, part D, or part E of this title in accordance
with section 437 or section 464(c); and
``(3) discharge or cancel student loans made, insured, or
guaranteed under part B, part D, and part E of this title, in
accordance section 437 or section 464(c), as soon as
practicable after the date of enactment of the No Double Debt
for Disaster Survivors Act of 2021, or, in the case of a
borrower who receives a loan made under section 7(b) of the
Small Business Act (15 U.S.C. 636(b)) after the date of
enactment of such Act, the date on which the borrower receives
such loan.
``(b) Reports.--
``(1) Initial report.--Not later than 6 months after the
date of enactment of the No Double Debt for Disaster Survivors
Act of 2021, the Secretary and the Administrator of the Small
Business Administration jointly shall report and provide
feedback to Congress on the progress made in developing and
implementing the procedures required under subsection (a),
including how such procedures will reduce waste, fraud, and
abuse.
``(2) Annual reports.--Not later than one year after the
date of enactment of the No Double Debt for Disaster Survivors
Act of 2021 and annually thereafter, the Secretary shall report
to Congress on--
``(A) the number of individuals with loans
discharged under section 437(e), cancelled under
section 464(c)(1)(F)(v), or both; and
``(B) the total dollar amount of loans discharged
or cancelled in accordance with such sections.''.
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