GRACE Act

Guaranteeing Respite After College Ends Act or the GRACE Act

This bill (1) provides for deferment periods (i.e., grace periods) that apply to federal student loan payments, and (2) prohibits interest from accruing on these loans during such deferment periods.

The bill specifies that Federal Direct Stafford Loans and Federal Direct Unsubsidized Stafford Loans first disbursed on or after July 1, 2020, are not subject to repayment of principal or interest accrual while the student borrower is in school or during the six-month grace period after the student borrower leaves school.

Additionally, the bill specifies that Federal Direct PLUS Loans and Federal Direct Consolidation Loans first disbursed on or after July 1, 2020, are not subject to repayment of principal or interest accrual prior to 60 days after loan disbursement.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3792 Introduced in House (IH)]

<DOC>






116th CONGRESS
  1st Session
                                H. R. 3792

To amend the Higher Education Act of 1965 to provide for deferment for 
     Federal loans prior to the beginning of the repayment period.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 17, 2019

Ms. Kendra S. Horn of Oklahoma introduced the following bill; which was 
            referred to the Committee on Education and Labor

_______________________________________________________________________

                                 A BILL


 
To amend the Higher Education Act of 1965 to provide for deferment for 
     Federal loans prior to the beginning of the repayment period.

    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 ``Guaranteeing Respite After College 
Ends Act'' or the ``GRACE Act''.

SEC. 2. DEFERMENT FOR FEDERAL STUDENT LOANS BEGINNING JULY 1, 2020.

    Section 455(f) of the Higher Education Act of 1965 (20 U.S.C. 
1087e(f)) is amended by adding at the end the following new paragraph:
            ``(6) Deferment of new loans on or after july 1, 2020.--
                    ``(A) In general.--Notwithstanding paragraph (1)(B) 
                or any other provision of this title to the contrary, a 
                borrower of a loan under this part for which the first 
                disbursement is made on or after July 1, 2020, shall be 
                eligible for and granted a deferment, during which 
                periodic installments of principal need not be paid, 
                and interest shall not accrue--
                            ``(i) with respect to any Federal Direct 
                        Stafford Loan or Federal Direct Unsubsidized 
                        Stafford Loan, during the period prior to the 
                        beginning of the repayment period of the loan; 
                        and
                            ``(ii) with respect to any Federal Direct 
                        PLUS Loan or Federal Direct Consolidation Loan, 
                        during the period prior to the commencement of 
                        repayment of such loan in accordance with 
                        section 428B9(d)(1) (as applied to Federal 
                        Direct PLUS Loans) or section 428C(c)(4) (as 
                        applied to Federal Direct Consolidation Loans).
                    ``(B) Other deferments.--The deferment authorized 
                under this paragraph is in addition to the deferments 
                authorized under the preceding paragraphs of this 
                subsection, and nothing in this paragraph shall be 
                interpreted to eliminate the availability of any other 
                period of authorized deferment or forbearance under 
                this title, except as specified in subparagraph (A).''.
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