Student Security Act of 2017
This bill amends the Higher Education Act of 1965 to require the Department of Education and the Social Security Administration to jointly carry out a student loan forgiveness program that will forgive Federal Direct loans in exchange for delayed eligibility for old-age insurance benefits under the Social Security Act.
In addition, the bill authorizes the transfer of amounts from the Federal Old-Age and Survivors Insurance Trust Fund into the Federal Disability Insurance Trust Fund if borrowing is necessary to pay full benefit payments from the Federal Disability Insurance Trust Fund.
The bill amends the Internal Revenue Code to expand the exclusion from gross income of income attributable to the discharge of student loan indebtedness to include indebtedness discharged under the program.
[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1937 Introduced in House (IH)]
<DOC>
115th CONGRESS
1st Session
H. R. 1937
To provide loan forgiveness to borrowers of Federal student loans who
agree to delay eligibility to collect social security benefits, and for
other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
April 5, 2017
Mr. Garrett introduced the following bill; which was referred to the
Committee on Ways and Means, and in addition to the Committee on
Education and the Workforce, for a period to be subsequently determined
by the Speaker, in each case for consideration of such provisions as
fall within the jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To provide loan forgiveness to borrowers of Federal student loans who
agree to delay eligibility to collect social security benefits, 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 Security Act of 2017''.
SEC. 2. STUDENT SECURITY LOAN FORGIVENSS PROGRAM.
Section 455 of the Higher Education Act of 1965 (20 U.S.C. 1087e)
is amended by adding at the end the following:
``(r) Student Security Loan Forgiveness Program.--
``(1) Program authorized.--Beginning not later than 180
days after the date of the enactment of the Student Security
Act of 2017, the Secretary of Education, jointly with the
Commissioner of Social Security, shall carry out a program
under which the Secretary shall issue student loan forgiveness
credits to qualified borrowers of eligible Federal Direct loans
in exchange for delayed eligibility for old-age insurance
benefits under title II of the Social Security Act (as amended
by the Student Security Act of 2017) in accordance with this
subsection.
``(2) Agreement required.--To be eligible to participate in
the program, a qualified borrower shall enter into a written
agreement with the Secretary of Education and the Commissioner
of Social Security under which the borrower--
``(A) elects to receive a specified number of
student loan forgiveness credits not greater than 180;
and
``(B) acknowledges the extent of the borrower's
delayed eligibility for old-age insurance benefits
under title II of the Social Security Act (as amended
by the Student Security Act of 2017) as a result of
receiving such credits.
``(3) Combination with other forgiveness programs.--Unless
otherwise provided by law, a qualified borrower may combine
forgiveness under this subsection with other forgiveness
programs under this Act, except in no case shall the total
amount of forgiveness received by a borrower under all such
programs exceed the amount of Federal student loans owed by
such borrower.
``(4) Definitions.--In this section:
``(A) Default.--The term `default' has the meaning
given the term in section 435(l).
``(B) Eligible federal direct loan.--The term
`eligible Federal Direct loan' means any loan made
under this part, including any such loan on which the
borrower has defaulted.
``(C) Qualified borrower.--The term `qualified
borrower' means the borrower of an eligible Federal
direct loan who is not entitled to collect old-age
insurance benefits under title II of the Social
Security Act as of the date of the agreement under
paragraph (2), including a borrower who is a defaulted
borrower.
``(D) Student loan forgiveness credit.--The term
`student loan forgiveness credit' means the
cancellation of the obligation of a qualified borrower
to repay $550 in eligible Federal Direct loans in
exchange for delayed eligibility for old-age insurance
benefits as specified in title II of the Social
Security Act (as amended by the Student Security Act of
2017).''.
SEC. 3. DELAYED ELIGIBILITY FOR OLD-AGE INSURANCE BENEFITS.
(a) Retirement Age; Early Retirement Age.--Section 216(l) of the
Social Security Act (42 U.S.C. 416(l)) is amended by adding at the end
the following:
``(4) Notwithstanding the preceding paragraphs of this subsection,
in the case of an individual who receives one or more student loan
forgiveness credits under section 455(r) of the Higher Education Act of
1965--
``(A) the retirement age with respect to such individual
shall be deemed to be--
``(i) the retirement age determined with respect to
such individual under paragraph (1); plus
``(ii) a number of additional months equal to the
number of student loan forgiveness credits received by
the individual under such section 455(r); and
``(B) the early retirement age with respect to such
individual shall be deemed to be--
``(i) the early retirement age determined with
respect to such individual under paragraph (2); plus
``(ii) a number of additional months equal to the
number of student loan forgiveness credits received by
the individual under such section 455(r).''.
(b) Delayed Retirement Credits.--Section 202(w) of the Social
Security Act (42 U.S.C. 402(w)) is amended by inserting after ``age
70'' each place it appears the following: ``(or, in the case of an
individual described in paragraph (4) of section 216(l), age 70 plus
the number of additional months determined under subparagraph (A)(ii)
of such paragraph)''.
(c) Voluntary Suspension of Benefits.--Section 202(z) of the Social
Security Act (42 U.S.C. 402(z)) is amended by inserting after ``the age
of 70'' the following: ``(or, in the case of an individual described in
paragraph (4) of section 216(l), the age of 70 plus the number of
additional months determined under subparagraph (A)(ii) of such
paragraph)''.
SEC. 4. INTERFUND BORROWING.
Section 201(l) of the Social Security Act (42 U.S.C. 401(l)) is
amended to read as follows:
``(l)(1) If at any time the Managing Trustee determines that
borrowing authorized under this subsection is necessary to pay full
benefit payments from the Federal Disability Insurance Trust Fund, the
Managing Trustee may borrow such necessary amounts from the Federal
Old-Age and Survivors Insurance Trust Fund for transfer to and deposit
in the Federal Disability Insurance Trust Fund.
``(2) In any case where a loan has been made to the Federal
Disability Insurance Trust Fund under paragraph (1), there shall be
transferred on the last day of each month after such loan is made, from
the borrowing Trust Fund to the lending Trust Fund, the total interest
accrued to such day with respect to the unrepaid balance of such loan
at a rate equal to the rate which the lending Trust Fund would earn on
the amount involved if the loan were an investment under subsection (d)
(even if such an investment would earn interest at a rate different
than the rate earned by investments redeemed by the lending Trust Fund
in order to make the loan).
``(3)(A) If in any month after a loan has been made to the Federal
Disability Insurance Trust Fund under paragraph (1), the Managing
Trustee determines that the assets of such Trust Fund are sufficient to
permit repayment of all or part of any loans made to such Fund under
paragraph (1), he shall make such repayments as he determines to be
appropriate.
``(B) The full amount of all loans made under paragraph (1) shall
be repaid at the earliest feasible date.
``(4) The Board of Trustees shall make a timely report to the
Congress of any amounts transferred (including interest payments) under
this subsection.''.
SEC. 5. EXCLUSION FROM GROSS INCOME FOR DISCHARGE OF STUDENT LOAN
INDEBTEDNESS UNDER THE STUDENT SECURITY LOAN FORGIVENESS
PROGRAM.
(a) In General.--Paragraph (1) of section 108(f) of the Internal
Revenue Code of 1986 is amended to read as follows:
``(1) In general.--In the case of an individual, gross
income does not include any amount which (but for this
subsection) would be includible in gross income by reason of
the discharge (in whole or in part) of any student loan if such
discharge was pursuant to--
``(A) a provision of such loan under which all or
part of the indebtedness of the individual would be
discharged if the individual worked for a certain
period of time in certain professions for any of a
broad class of employers, or
``(B) the receipt of student loan forgiveness
credits under section 455(r) of the Higher Education
Act of 1965.''.
(b) Effective Date.--The amendments made by this section shall
apply to discharges of indebtedness on or after the date of the
enactment of this Act.
<all>
Introduced in House
Introduced in House
Referred to the Committee on Ways and Means, and in addition to the Committee on Education and the Workforce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Ways and Means, and in addition to the Committee on Education and the Workforce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Ways and Means, and in addition to the Committee on Education and the Workforce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Subcommittee on Social Security.
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