Text: S.2895 — 110th Congress (2007-2008)All Information (Except Text)

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Introduced in Senate (04/21/2008)


110th CONGRESS
2d Session
S. 2895


To amend the Higher Education Act of 1965 to maintain eligibility, for Federal PLUS loans, of borrowers who are 90 or more days delinquent on mortgage loan payments, or for whom foreclosure proceedings have been initiated, with respect to their primary residence.


IN THE SENATE OF THE UNITED STATES

April 21, 2008

Mr. Dodd (for himself, Mr. Kennedy, Mr. Brown, Mrs. Murray, Mr. Sanders, and Mrs. Clinton) introduced the following bill; which was read twice and referred to the Committee on Health, Education, Labor, and Pensions


A BILL

To amend the Higher Education Act of 1965 to maintain eligibility, for Federal PLUS loans, of borrowers who are 90 or more days delinquent on mortgage loan payments, or for whom foreclosure proceedings have been initiated, with respect to their primary residence.

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 “PLUS Loan Borrower Protection Act of 2008”.

SEC. 2. Special rules for Federal PLUS loans.

Section 428B(a)(3) of the Higher Education Act of 1965 (20 U.S.C. 1078–2(a)(3)) is amended—

(1) by striking “Whenever” and inserting the following:

    “(A) PARENT BORROWERS.—Whenever”; and

(2) by adding at the end the following:

    “(B) EXTENUATING CIRCUMSTANCES.—

    “(i) IN GENERAL.—For purposes of determining if a borrower has an adverse credit history under paragraph (1)(A) on the basis of a delinquency or foreclosure related to a mortgage loan, an extenuating circumstance exists if, during the period beginning January 1, 2007 and ending December 31, 2012, the borrower is 90 or more days delinquent on mortgage loan payments, or foreclosure proceedings have been initiated, with respect to the primary residence of the borrower.

    “(ii) DEFINITION.—The term ‘mortgage loan’ means an extension of credit that is secured by the primary residence of the borrower.”.