[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 644 Introduced in House (IH)]
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118th CONGRESS
1st Session
H. R. 644
To protect borrowers of Federal student loans during the transition
period following the end of the COVID-19 student loan repayment pause,
and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
January 31, 2023
Ms. Bonamici (for herself, Mrs. McBath, Ms. Wild, Ms. Norton, Ms.
Wilson of Florida, Mr. Carson, Mr. Vargas, Mr. Cleaver, Mr. Davis of
Illinois, Mr. Evans, Mr. Thompson of California, Ms. Titus, Mr. Takano,
Mr. Courtney, and Ms. Salinas) introduced the following bill; which was
referred to the Committee on Education and the Workforce
_______________________________________________________________________
A BILL
To protect borrowers of Federal student loans during the transition
period following the end of the COVID-19 student loan repayment pause,
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 Borrower Safety Net Act
of 2023''.
SEC. 2. EXTENSION OF APPLICATION AND RECERTIFICATION DEADLINE.
(a) In General.--Section 3513 of the CARES Act (20 U.S.C. 1001
note) is amended--
(1) by amending subsection (g) to read as follows:
``(g) Notice to Borrowers of Covered Loans Relating to Transition
Period.--Not later than the date that is 60 days prior to the first day
on which a borrower's payment obligations on a covered loan are no
longer suspended, as determined by the Secretary, the Secretary shall
carry out a program to provide a total of not fewer than 6 notices
through a combination of postal mail, telephone, and electronic
communication to such a borrower indicating--
``(1) when the borrower's normal payment obligations will
resume;
``(2) that the borrower may be eligible to enroll in
income-driven repayment, including a brief description of the
most affordable and generous income-driven repayment options;
and
``(3) the options available to a borrower who is in
default, including--
``(A) the option to participate in the Fresh Start
program of the Department of Education;
``(B) the option to rehabilitate or consolidate the
borrower's loans; and
``(C) a brief description of the benefits and
consequences of each option.''; and
(2) by adding at the end the following:
``(h) Priority Notification.--
``(1) In general.--In carrying out subsection (g), the
Secretary shall give priority in accordance with paragraph (2)
to notifying borrowers who--
``(A) during the 5-year period preceding March 31,
2020, missed a payment or payments for a period of not
less than 60 days with respect to a covered loan; and
``(B) in the 5 years preceding March 31, 2020--
``(i) missed a payment in the first 3
months of entering repayment with respect to
such a covered loan;
``(ii) entered into a non-administrative
forbearance or a economic hardship deferment
with respect to such a covered loan--
``(I) on 2 or more occasions; or
``(II) for a period of longer than
1 year;
``(iii) were enrolled and subsequently
unenrolled, or changed to less-than-half-time
enrollment status, more than twice after
entering repayment with respect to such a
covered loan;
``(iv) defaulted on such a covered loan; or
``(v) on 3 or more occasions, missed two or
more consecutive payments with respect to such
a covered loan.
``(2) Priority.--In carrying out paragraph (1), the
Secretary shall--
``(A) notify borrowers described in such paragraph
of the information specified in subsection (g) through
at least 3 additional and subsequent notifications
after the initial notification; or
``(B) carry out other evidence-based outreach
activities that are designed to assist struggling
borrowers or borrowers who were otherwise at risk for
default before the COVID-19 pandemic, and report to
Congress on such activities.
``(i) Application or Recertification.--
``(1) In general.--A borrower of a covered loan may--
``(A) during the period beginning on the date of
enactment of the Student Loan Borrower Safety Net Act
of 2023, and ending on the date that is one year after
the first day on which a borrower's payment obligations
on such loan are no longer suspended, submit a written,
verbal, or electronic application or reapplication for
an income-driven repayment plan with respect to such
loan; and
``(B) under an application described in
subparagraph (A), self-certify the income and family
size of such borrower.
``(2) Change of repayment plans.--With respect to a covered
loan, in the case of a borrower of such a loan who opts to
change the repayment plan in which such borrower was enrolled
on the date of the enactment of this section--
``(A) no fee or payment shall be required during
the period in which it takes such borrower to become
enrolled in such repayment plan; and
``(B) before the borrower selects a new repayment
plan, the Secretary shall notify the borrower of the
most affordable and generous repayment plan available
to the borrower.
``(3) Economic hardship.--
``(A) In general.--A borrower of a covered loan
who, due to an economic hardship, is unable to make
payments with respect to such loan on or after the
first day on which the borrower's payment obligations
on such loan are no longer suspended, may apply to the
Secretary for an economic hardship deferment for the
period beginning on the date of enactment of the
Student Loan Borrower Safety Net Act of 2023 and ending
on the date that is one year after the first day on
which the borrower's payment obligations on such loan
are no longer suspended. To apply for such a deferment,
a borrower shall submit a written, verbal, or
electronic certification of such economic hardship to
the Secretary.
``(B) Notification.--The Secretary and any other
servicer of a covered loan shall notify borrowers who
miss a payment on such a loan of the availability of--
``(i) income-driven repayment plans
available in accordance with paragraph (1); and
``(ii) an economic hardship deferment under
this paragraph.
``(C) Treatment of borrower with economic
hardship.--In the case of a borrower who submits
certification of an economic hardship under
subparagraph (A), the Secretary shall treat such
borrower in the same manner as a borrower with an
economic hardship under section 435(o) of the Higher
Education Act of 1965 (20 U.S.C. 1085(o)).
``(j) Missed Payments.--In the case of a borrower of a covered loan
who misses a payment or payments on such a loan for the 60-day period
beginning on the first day on which the borrower's payment obligations
on such loan are no longer suspended, the Secretary or the holder of a
loan described in subsection (k)(2) shall--
``(1) hold such loan in administrative forbearance for a
90-day period beginning on the date that is 60 days after the
first day on which the borrower's payment obligations on such
loan are no longer suspended; and
``(2) contact such borrower on at least 6 separate
occasions regarding the information included in subsection (g).
``(k) Covered Loan.--In this section, the term `covered loan'
means--
``(1) a loan described in subsection (a); or
``(2) a loan--
``(A) made, insured, or guaranteed under part B of
title IV of the Higher Education Act of 1965 (20 U.S.C.
1071 et seq.); and
``(B) for which payments were suspended--
``(i) pursuant to the Higher Education
Relief Opportunities for Students Act of 2003
(Public Law 108-76; 20 U.S.C. 1070 note); and
``(ii) during a qualifying emergency.''.
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