Exempts students who withdraw from higher education institutions to serve on active duty during a war or national emergency from requirements to repay certain title IV grant assistance.
Defers repayments of principal, and directs the Secretary of Education to make interest payments, on specified types of student loans during a war or national emergency when a borrower is: (1) a member of a regular component on active duty, and receives specified compensation; (2) on active duty, regardless of the location at which such active duty service is performed; or (3) on full-time National Guard duty under a call to active service for a period of more than 30 consecutive days to respond to a national emergency.
[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1955 Introduced in House (IH)]
108th CONGRESS
1st Session
H. R. 1955
To amend the Higher Education Act of 1965 to allow soldiers to serve
their country without being disadvantaged financially by Federal
student aid programs.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
May 6, 2003
Mr. McIntyre (for himself, Mr. Ryan of Ohio, Mr. Evans, Mr. Wilson of
South Carolina, Mr. Boswell, and Mr. Leach) introduced the following
bill; which was referred to the Committee on Education and the
Workforce
_______________________________________________________________________
A BILL
To amend the Higher Education Act of 1965 to allow soldiers to serve
their country without being disadvantaged financially by Federal
student aid programs.
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 ``Fairness for America's Servicemen
and Women in Higher Education Act of 2003''.
SEC. 2. REFUND POLICY.
Section 484B(b)(2) of the Higher Education Act of 1965 (20 U.S.C.
1091b(b)(2)) is amended by adding at the end the following:
``(D) Students on active duty during a war or
national emergency.--Notwithstanding subparagraphs (A),
(B), and (C), a student who withdraws from an
institution of higher education to serve on active duty
during a war or national emergency shall not be
required to repay any grant assistance that is
otherwise required to be repayed under this section.''.
SEC. 3. DEFERMENT DURING ACTIVE DUTY.
(a) FFEL Subsidized Loans.--Section 428(b)(1)(M) of the Higher
Education Act of 1965 (20 U.S.C. 1078(b)(1)(M)) is amended--
(1) in clause (ii), by striking ``or'' after the semicolon;
(2) in clause (iii), by inserting ``or'' after the
semicolon; and
(3) by inserting after clause (iii) the following:
``(iv) during which the borrower--
``(I) is a member of a regular
component on active duty during a war
or during a national emergency declared
by the President or Congress, and
receives compensation described in
section 112(a) of the Internal Revenue
Code of 1986;
``(II) is on active duty under
section 688, 12301(a), 12301(d),
12301(g), 12302, 12304, 12306, 12307,
or 12406, or chapter 15 of title 10,
United States Code, or any other
provision of law, during a war or
during a national emergency declared by
the President or Congress, regardless
of the location at which such active
duty service is performed; or
``(III) in the case of a member of
the National Guard, is on full-time
National Guard duty (as defined in
section 101(d)(5) of title 10, United
States Code) under a call to active
service authorized by the President or
the Secretary of Defense for a period
of more than 30 consecutive days under
section 12402 of title 10, United
States Code, or section 502(f) of title
32, United States Code, for purposes of
responding to a national emergency
declared by the President and supported
by Federal funds.''.
(b) Direct Subsidized Loans.--Section 455(f)(2) of such Act (20
U.S.C. 1087e(f)(2)) is amended--
(1) by striking the period at the end of subparagraph (C)
and inserting ``; and''; and
(2) by adding at the end the following new subparagraph:
``(D) during which the borrower--
``(i) is a member of a regular component on
active duty during a war or during a national
emergency declared by the President or
Congress, and receives compensation described
in section 112(a) of the Internal Revenue Code
of 1986;
``(ii) is on active duty under section 688,
12301(a), 12301(d), 12301(g), 12302, 12304,
12306, 12307, or 12406, or chapter 15 of title
10, United States Code, or any other provision
of law, during a war or during a national
emergency declared by the President or
Congress, regardless of the location at which
such active duty service is performed; or
``(iii) in the case of a member of the
National Guard, is on full-time National Guard
duty (as defined in section 101(d)(5) of title
10, United States Code) under a call to active
service authorized by the President or the
Secretary of Defense for a period of more than
30 consecutive days under section 12402 of
title 10, United States Code, or section 502(f)
of title 32, United States Code, for purposes
of responding to a national emergency declared
by the President and supported by Federal
funds.''.
(c) Consolidation Loans.--Section 428C(b)(4)(C)(ii) of the Higher
Education Act of 1965 (20 U.S.C. 1078-3(b)(4)(C)(ii)) is amended--
(1) in subclause (II), by striking ``or'' after the
semicolon;
(2) in subclause (III), by striking ``or (II)'' and
inserting ``, (II) or (III)'';
(3) by redesignating subclause (III) (as so amended) as
subclause (IV); and
(4) by inserting after subclause (II) the following:
``(III) by the Secretary, in the case of a
consolidation loan of a student who is on an active
duty deferment under section 428(b)(1)(M)(iv); or''.
(d) FFEL Unsubsidized Loans.--Section 428H(e) of the Higher
Education Act of 1965 (20 U.S.C. 1078-8(e)) is amended by adding at the
end the following:
``(C) Notwithstanding subparagraph (A), interest on loans
made under this section for which payments of principal are
deferred because the student is on an active duty deferment
under section 428(b)(1)(M)(iv) shall be paid by the
Secretary.''.
(e) Direct Unsubsidized Loans.--Section 455(f) of such Act (20
U.S.C. 1087e(f)) is amended by adding at the end the following:
``(5) Interest during active duty deferments.--
Notwithstanding paragraph (1)(B), interest on loans under this
part for which payments of principal are deferred because the
student is on an active duty deferment under paragraph (2)(D)
shall be paid by the Secretary.''.
(f) Perkins Loans.--Section 464(c)(2)(A) of the Higher Education
Act of 1965 (20 U.S.C. 1087dd(c)(2)(A)) is amended--
(1) in clause (iii), by striking ``or'' after the
semicolon;
(2) in clause (iv), by inserting ``or'' after the
semicolon; and
(3) by inserting after clause (iv) the following:
``(v) during which the borrower--
``(I) is a member of a regular
component on active duty during a war
or during a national emergency declared
by the President or Congress, and
receives compensation described in
section 112(a) of the Internal Revenue
Code of 1986;
``(II) is on active duty under
section 688, 12301(a), 12301(d),
12301(g), 12302, 12304, 12306, 12307,
or 12406, or chapter 15 of title 10,
United States Code, or any other
provision of law, during a war or
during a national emergency declared by
the President or Congress, regardless
of the location at which such active
duty service is performed; or
``(III) in the case of a member of
the National Guard, is on full-time
National Guard duty (as defined in
section 101(d)(5) of title 10, United
States Code) under a call to active
service authorized by the President or
the Secretary of Defense for a period
of more than 30 consecutive days under
section 12402 of title 10, United
States Code, or section 502(f) of title
32, United States Code, for purposes of
responding to a national emergency
declared by the President and supported
by Federal funds.''.
(g) Effective Date.--The amendments made by this section shall
apply with respect to loans for which the first disbursement is made on
or after July 1, 1993, to an individual who is a new borrower (within
the meaning of section 103 of the Higher Education Act of 1965 (20
U.S.C. 1003)) on or after such date.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Education and the Workforce.
Referred to the Subcommittee on 21st Century Competitiveness.
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