Graduate Success Act - Amends title IV (Student Assistance) of the Higher Education Act of 1965 to direct the Secretary of Education to pay the interest that accrues on unsubsidized Federal Family Education Loans (FFELs) and Direct Loans (DLs) that are deferred due to a student borrower's lack of full-time employment.
Requires the Secretary to pay the interest that accrues on Federal Consolidation Loans that are in deferment due to a borrower's lack of full-time employment, provided the application for such a loan is received on or after this Act's enactment.
Directs the Secretary to pay the interest that accrues on FFELs and DLs that are subject to income-based repayment provisions and are in deferment due to a borrower's lack of full-time employment.
Limits these interest-free deferment periods to those occurring on or after this Act's enactment and covering no more than three years of full-time unemployment.
[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5895 Introduced in House (IH)]
112th CONGRESS
2d Session
H. R. 5895
To provide interest-free deferment on unsubsidized student loans during
periods of unemployment, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
June 5, 2012
Ms. Bass of California (for herself, Mr. Hinojosa, Mr. McDermott, Mr.
Towns, Ms. DeLauro, Mr. Thompson of Mississippi, Mr. Cicilline, Mr.
Conyers, Mr. Clarke of Michigan, Mr. Jackson of Illinois, Ms. Bordallo,
Mr. Lewis of Georgia, Mr. Kucinich, Mr. Johnson of Georgia, Mr.
Hinchey, Mr. Carson of Indiana, Mr. Davis of Illinois, Mr. Sablan, Mr.
Rangel, Mr. Honda, Ms. Richardson, Ms. Sewell, Mr. Olver, Ms. Norton,
Ms. Hahn, Mr. Nadler, Ms. Lee of California, Mr. Reyes, and Mr. Tonko)
introduced the following bill; which was referred to the Committee on
Education and the Workforce
_______________________________________________________________________
A BILL
To provide interest-free deferment on unsubsidized student loans during
periods of unemployment, 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 ``Graduate Success Act''.
SEC. 2. INTEREST-FREE DEFERMENT OF UNSUBSIDIZED LOANS DURING PERIODS OF
UNEMPLOYMENT.
(a) FFEL Unsubsidized Loan Deferment.--
(1) Section 428H(e)(2) of the Higher Education Act of 1965
(20 U.S.C. 1078-8(e)(2)) is amended--
(A) in subparagraph (A), by inserting ``Except as
provided in subparagraph (C),'' before ``Interest on'';
and
(B) by adding at the end the following:
``(C) Interest on loans made under this section for which
payments are deferred under clause (ii) of section
428(b)(1)(M), for a period of deferment granted to a borrower
on or after the date of enactment of the Graduate Success Act,
shall accrue and be paid by the Secretary during any period
during which loans are so deferred, not in excess of 3
years.''.
(2) Conforming amendment.--Section 428(b)(1)(Y)(iii) of the
Higher Education Act of 1965 (20 U.S.C. 1078(b)(1)(Y)(iii)) is
amended by inserting ``(other than a deferment under clause
(ii) of such subparagraph on or after the date of enactment of
the Graduate Success Act)'' after ``of this paragraph''.
(b) Direct Unsubsidized Loan Deferment.--Section 455(f)(1) of the
Higher Education Act of 1965 (20 U.S.C. 1087e(f)(1)) is amended--
(1) in subparagraph (A)--
(A) by striking ``or'' at the end of clause (i);
and
(B) by adding at the end the following:
``(iii) a Federal Direct Unsubsidized
Stafford Loan, with respect to a period of
deferment described in subparagraph (B) of
paragraph (2) granted to a borrower on or after
the date of enactment of the Graduate Success
Act; or''; and
(2) in subparagraph (B), by inserting ``not described in
subparagraph (A)(iii)'' after ``Unsubsidized Stafford Loan''.
(c) Treatment of 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) by striking ``or'' at the end of subclause (II);
(2) by redesignating subclause (III) as subclause (IV);
(3) by inserting after subclause (II) the following:
``(III) by the Secretary, in the
case of a consolidation loan for which
the application is received on or after
the date of enactment of the Graduate
Success Act, except that the Secretary
shall pay such interest only for a
period not in excess of 3 years for
which the borrower would be eligible
for a deferral under clause (ii) of
section 428(b)(1)(M); or''; and
(4) in subclause (IV) (as so redesignated by this
subsection), by striking ``(I) or (II)'' and inserting ``(I),
(II), or (III)''.
(d) Income-Based Repayment.--Section 493C(b)(3) of the Higher
Education Act of 1965 (20 U.S.C. 10983(b)(3)) is amended--
(1) in subparagraph (A), by striking ``and'' after the
semicolon;
(2) by redesignating subparagraph (B) as subparagraph (C);
(3) by inserting after subparagraph (A) the following:
``(B) shall, on subsidized and unsubsidized loans,
be paid by the Secretary for a period of not more than
3 years during which the borrower is eligible for a
deferment due to unemployment described in section
455(f)(2)(B) (regardless of whether the student is in
such a deferment), except that--
``(i) this subparagraph shall only apply to
periods during which the borrower is eligible
for a such deferment on or after the date of
enactment of the Graduate Success Act; and
``(ii) in the case of a subsidized loan,
such period shall not include any period
described in subparagraph (A) or any period
during which the borrower is in deferment due
to an economic hardship described in section
435(o); and''; and
(4) in subparagraph (C) (as so redesignated by paragraph
(2))--
(A) in clause (i), by striking ``subparagraph (A)''
and inserting ``subparagraphs (A) and (B)''; and
(B) in clause (ii), by inserting ``, subject to
subparagraph (B),'' after ``unsubsidized loan''.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Education and the Workforce.
Referred to the Subcommittee on Higher Education and Workforce Training.
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