College Loan Deferment for Recovery Act

College Loan Deferment for Recovery Act

This bill amends the Higher Education Act of 1965 to allow borrowers to defer student loans while they are enrolled in a drug treatment program and during the 30 days after completing the program.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4597 Introduced in House (IH)]

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115th CONGRESS
  1st Session
                                H. R. 4597

To amend the Higher Education Act of 1965 to allow for the deferment of 
 certain student loans during a period in which a borrower is enrolled 
                      in a drug treatment program.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            December 7, 2017

 Mr. MacArthur (for himself, Ms. Esty of Connecticut, Mr. Foster, and 
    Mr. Carson of Indiana) 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 for the deferment of 
 certain student loans during a period in which a borrower is enrolled 
                      in a drug treatment program.

    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 ``College Loan Deferment for Recovery 
Act''.

SEC. 2. STUDENT LOAN DEFERMENT FOR BORROWERS ENROLLED IN A DRUG 
              TREATMENT PROGRAM.

    (a) Direct Loans.--Section 455(f) of the Higher Education Act of 
1965 (20 U.S.C. 1087e(f)) is amended--
            (1) by redesignating paragraphs (3) and (4) as paragraphs 
        (4) and (5), respectively; and
            (2) by inserting after paragraph (2) the following:
            ``(3) Deferment for borrowers enrolled in a drug treatment 
        program.--
                    ``(A) Effect on principal and interest.--A borrower 
                of a loan made under this part who meets the 
                requirements of subparagraph (B) shall be eligible for 
                a deferment, during which periodic installments of 
                principal need not be paid, and interest shall not 
                accrue.
                    ``(B) Eligibility.--A borrower of a loan made under 
                this part shall be eligible for a deferment during--
                            ``(i) any period in which such borrower is 
                        enrolled in a drug treatment program; and
                            ``(ii) the 30 days after such period.
                    ``(C) Drug treatment program defined.--In this 
                paragraph, the term `drug treatment program' means a 
                program certified or licensed by a State to provide 
                drug treatment in the State.
                    ``(D) Applicability.--This paragraph shall apply 
                with respect to loans--
                            ``(i) made on or after the date of the 
                        enactment of this paragraph; or
                            ``(ii) in repayment on the date of the 
                        enactment of this paragraph.''.
    (b) Terms of Federally Insured Student Loans.--Section 427(a)(2)(C) 
of the Higher Education Act of 1965 (20 U.S.C. 1077(a)(2)(C)) is 
amended--
            (1) in clause (ii), by striking ``; or'' and inserting a 
        semicolon;
            (2) in clause (iii), by inserting ``or'' after the 
        semicolon; and
            (3) by inserting after clause (iii) the following:
                            ``(iv) in which the borrower is enrolled in 
                        a drug treatment program (as defined in section 
                        455(f)(3)(C)), and the 30 days after such 
                        period.''.
    (c) FFEL Program.--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 (iii), by striking ``or (II); or'' and 
        inserting ``or (II);'';
            (2) in clause (iv), by inserting ``or'' after the 
        semicolon; and
            (3) by adding at the end the following:
                            ``(v) during which the borrower is enrolled 
                        in a drug treatment program (as defined in 
                        section 455(f)(3)(C)), and the 30 days after 
                        such period;''.
    (d) Federal Perkins Loans.--Section 464(c)(2) of the Higher 
Education Act of 1965 (20 U.S.C. 1087dd(c)(2)) is amended--
            (1) in subparagraph (A)--
                    (A) in clause (iv), by striking ``; or'' and 
                inserting a semicolon;
                    (B) in clause (v), by inserting ``or'' after the 
                semicolon; and
                    (C) by inserting after clause (v) the following:
            ``(vi) during which the borrower is enrolled in a drug 
        treatment program (as defined in section 455(f)(3)(C)), and the 
        30 days after such period;''.
    (e) Interest on Unsubsubsidized Stafford Loans.--Section 428H(e)(2) 
of the Higher Education Act of 1965 (20 U.S.C. 1078-8(e)(2)) is 
amended--
            (1) in subparagraph (A), by striking ``Interest'' and 
        inserting, ``Except as provided in subparagraph (C), 
        interest''; and
            (2) by adding at the end the following:
            ``(C) Interest shall not accrue on a loan deferred under 
        section 428(b)(1)(M)(v) or 427(a)(2)(C)(iv).''.
    (f) Applicability.--The amendments made by this Act shall apply 
with respect to loans--
            (1) made on or after the date of the enactment of this Act; 
        or
            (2) in repayment on the date of the enactment of this Act.
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