GRAD Act of 2013

Get Relief from Academic Debt Act of 2013 or the GRAD Act of 2013 - Amends title IV (Student Assistance) of the Higher Education Act of 1965 to allow borrowers of Direct Stafford Loans to opt to extend the period before they must begin to repay such loans to one year after they cease to carry at least one-half the normal full-time academic workload. (Currently, the repayment period for Direct Stafford Loans begins six months after borrowers cease to carry at least one-half the normal full-time academic workload.)

Subsidizes the interest that accrues on Direct Stafford Loans for the first six months of that extended grace period.

Makes this Act applicable to Direct Stafford Loans first disbursed on or after July 1, 2013.

[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2349 Introduced in House (IH)]

113th CONGRESS
  1st Session
                                H. R. 2349

To restore and extend the grace period of Federal Direct Stafford Loans 
            and Federal Direct Unsubsidized Stafford Loans.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 13, 2013

Mrs. Negrete McLeod (for herself and Ms. Hahn) introduced the following 
    bill; which was referred to the Committee on Education and the 
                               Workforce

_______________________________________________________________________

                                 A BILL


 
To restore and extend the grace period of Federal Direct Stafford Loans 
            and Federal Direct Unsubsidized Stafford Loans.

    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 ``Get Relief from Academic Debt Act of 
2013'' or the ``GRAD Act of 2013''.

SEC. 2. RESTORATION AND EXTENSION OF THE START OF THE REPAYMENT PERIOD 
              OF CERTAIN FEDERAL DIRECT LOANS.

    (a) Restoration of Interest Subsidy During First 6-Month Grace 
Period.--Section 428(a)(3)(A)(i)(I) of the Higher Education Act of 1965 
(20 U.S.C. 1078(a)(3)(A)(i)(I)) is amended by inserting ``or, for a 
Federal Direct Stafford Loan for which the first disbursement is made 
on or after July 1, 2013, which accrues prior to the beginning of the 
repayment period of the loan (except for interest which accrues during 
the last 6-months prior to the beginning of such period, in the case of 
a student who makes an election under section 3(b)(2) of the Get Relief 
from Academic Debt Act of 2013),'' before ``, or''.
    (b) Grace-Period Extension.--
            (1) Amendment.--Section 428(b)(7) of the Higher Education 
        Act of 1965 (20 U.S.C. 1078(b)(7)) is amended--
                    (A) in subparagraph (A), by inserting ``or, in the 
                case of a student who makes an election under section 
                3(b)(2) of the Get Relief from Academic Debt Act of 
                2013, 12 months'' after ``6 months''; and
                    (B) in subparagraph (D), by inserting ``or, in the 
                case of a student who makes an election under section 
                3(b)(2) of the Get Relief from Academic Debt Act of 
                2013, the 12-month period'' after ``6-month period''.
            (2) Election of extended grace period for certain fdsl and 
        fdus loans.--The Secretary of Education shall provide an 
        opportunity for each borrower who has a Federal Direct Stafford 
        Loan or Federal Direct Unsubsidized Stafford Loan for which the 
        first disbursement is made on or after July 1, 2013, to elect a 
        12-month grace period, in accordance with section 428(b)(7) of 
        the Higher Education Act of 1965, as amended by this 
        subsection, before beginning repayment. The Secretary shall--
                    (A) notify each such borrower of the opportunity 
                for such an election not later than 45 days before the 
                start of the borrower's repayment period, as determined 
                under section 428(b)(7) of the Higher Education Act of 
                1965 as in effect on the day before the date of 
                enactment of this Act;
                    (B) advise each such borrower of the financial 
                consequences of electing such 12-month grace period; 
                and
                    (C) not require such a borrower to accept a 12-
                month grace period in accordance with section 428(b)(7) 
                of the Higher Education Act of 1965 (as amended by this 
                subsection), unless the borrower specifically elects 
                such 12-month grace period not later than 14 days 
                before the start of the borrower's repayment period, as 
                determined under section 428(b)(7) of the Higher 
                Education Act of 1965 as in effect on the day before 
                the date of enactment of this Act.
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