Rural Revitalization Now Act
This bill establishes a program to provide up to $50,000 in student loan forgiveness for each borrower who lives and works in a qualifying area for eight or more years. Qualifying areas are cities or towns that are defined based on population size, population loss over the last 10 years, potential economic benefit, or designation as a major disaster area within the last 5 years.
[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8835 Introduced in House (IH)]
<DOC>
116th CONGRESS
2d Session
H. R. 8835
To amend the Higher Education Act of 1965 to provide for a relocation
and retention student loan repayment program, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
December 2, 2020
Ms. Finkenauer (for herself and Mr. Delgado) introduced the following
bill; which was referred to the Committee on Education and Labor, and
in addition to the Committee on Ways and Means, 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 amend the Higher Education Act of 1965 to provide for a relocation
and retention student loan repayment program, 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 ``Rural Revitalization Now Act''.
SEC. 2. RELOCATION AND RETENTION STUDENT LOAN 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) Relocation and Retention Student Loan Repayment Program.--
``(1) In general.--
``(A) Enrolled loan amount.--A borrower may elect
to enroll any combination of principal and accrued
interest that has not been capitalized on eligible
loans not in default as an enrolled loan balance under
the program under this subsection in an amount that is
equal to--
``(i) an amount agreed to by the borrower,
Secretary, and sponsoring entity (or a
combination of such sponsoring entities); and
``(ii) except as provided in paragraph
(3)(B)(ii), the lesser of the following:
``(I) $50,000.
``(II) The total amount of eligible
loans of such borrower.
``(B) Cancellation or repayment required.--The
Secretary shall cancel or repay an amount determined
under paragraph (2)(A) of the balance due on any
enrolled loan balance not in default for a borrower
who--
``(i) has maintained residence in a
qualifying area during a 12-month period and
such borrower attests that such residence is a
primary residence; and
``(ii) demonstrates to the Secretary in the
agreement under paragraph (2)(A) that a
sponsoring entity certified in accordance with
paragraph (3)(A) (or a combination of such
sponsoring entities) will, except as provided
in paragraph (3)(B)(ii), match the amounts
cancelled or repaid by the Secretary as
payments made by such sponsoring entity (or a
combination of such sponsoring entities)
towards the repayment of the enrolled loan
balance.
``(C) Certification.--The Secretary shall establish
a user-friendly, simplified, and electronic process
using the online portal required under paragraph (5)(B)
through which a borrower who makes an election to
enroll eligible loans into an enrolled loan balance
under subparagraph (A) shall annually certify
enrollment in the program under this subsection.
``(D) No payments required by borrower.--A borrower
may not be required to make payments with respect to
the enrolled loan balance (or payments on the interest
that accrues on the total amount of such enrolled loan
balance) during any 12-month period in which the
borrower is enrolled in the program under this
subsection.
``(2) Schedule.--
``(A) Agreement.--Subject to subparagraph (B), the
Secretary shall enter into an agreement with a borrower
and sponsoring entity (or a combination of such
sponsoring entities) to cancel or repay an amount with
respect to each 12-month period described under
paragraph (1)(B)(i) such that over the period of 96
months the total amount of cancellation under paragraph
(1) is equal to an amount that, except as provided in
paragraph (3)(B)(ii), is equal to the lesser of the
following:
``(i) $25,000 toward the enrolled loan
balance, plus the interest that accrues on the
total amount of the enrolled loan balance under
paragraph (1)(A).
``(ii) Half of the total amount of the
enrolled loan balance, plus the interest that
accrues on the total amount of the enrolled
loan balance under paragraph (1)(A).
``(B) Increased cancellation amounts over time.--
The Secretary shall establish a standardized
cancellation or repayment schedule for purposes of the
program under this subsection such that over the course
of 8 cancellations or repayments of the enrolled loan
balance under paragraph (1), the total amount cancelled
or repaid with respect to each 12-month period
increases.
``(C) Number of cancellations.--A borrower--
``(i) may receive during a 12-month period
for which the borrower is certified not more
than one cancellation or repayment under
paragraph (1); and
``(ii) may not receive more than 8 such
cancellations or repayments.
``(D) Prohibition on pressuring borrowers.--
``(i) In general.--A private education loan
debt collector or creditor may not pressure a
borrower of a private loan to elect to apply
any amount received pursuant to paragraph (1)
to any private education loan.
``(ii) Violations.--A violation of this
subparagraph is deemed--
``(I) an unfair, deceptive, or
abusive act or practice under Federal
law in connection with any transaction
with a consumer for a consumer
financial product or service under
section 1031 of the Consumer Financial
Protection Act of 2010 (12 U.S.C.
5531); and
``(II) with respect to a violation
by a debt collector, an unfair or
unconscionable means to collect or
attempt to collect any debt under
section 808 of the Federal Debt
Collection Practices Act (15 U.S.C.
1692f).
``(iii) Pressure defined.--In this
subparagraph, the term `pressure' means any
communication, recommendation, or other similar
communication, other than providing basic
information about a borrower's options, urging
a borrower to make an election described in
clause (i).
``(E) Unenrollment.--A borrower who no longer
resides in a qualifying area after receiving a
cancellation or repayment under this subsection shall
be unenrolled from the program under this subsection
and the remaining enrolled loan balance of such
borrower shall be included in the eligible loans from
which such enrolled loan balance derived. Such
unenrollment shall not preclude a borrower from
enrolling the eligible loans of the borrower into an
appropriate loan forgiveness or repayment program,
including such a program in which the borrower is, at
the time of such unenrollment, already enrolled or
participating in.
``(F) Regulations.--The Secretary shall issue such
regulations as are necessary to allow borrowers to
concurrently enroll in the program under this
subsection with respect to an enrolled loan balance and
a loan forgiveness or repayment program with respect to
the other eligible loans of the borrower not so
enrolled. In the case of a borrower described in
subparagraph (E), the Secretary shall establish through
regulation a process by which the remaining enrolled
loan balance of such borrower is included in to the
eligible loans from which such enrolled loan balance
derived and may be enrolled in an appropriate loan
forgiveness or repayment program if the borrower would
otherwise be eligible for such program.
``(3) Sponsoring entities.--
``(A) In general.--The Secretary, in consultation
with the Secretary of Commerce and the Secretary of
Labor, shall carry out a program to certify States,
counties, localities, territories, Tribes, nonprofit
entities, and qualifying partnerships that are able to
provide funding to borrowers for purposes of this
subsection. Such program shall include standard
requirements relating to the treatment of default by a
sponsoring entity and the ability of a sponsoring
entity to be certified or recertified after such a
default.
``(B) Matching funds.--
``(i) In general.--Except as provided in
clause (ii), a sponsoring entity (or a
combination of such sponsoring entities) shall
match (except with respect to the interest that
accrues on the total amount of the enrolled
loan balance under paragraph (1)(A)) the
amounts cancelled or repaid by the Secretary
under paragraph (1) as payments made by such
sponsoring entity towards the repayment of the
enrolled loan balance.
``(ii) Exceptions.--
``(I) Extreme financial hardship.--
In the case of a sponsoring entity (or
a combination of such sponsoring
entities) with an extreme financial
hardship that demonstrates such
hardship to the Secretary, through a
process determined by the Secretary,
the sponsoring entity and the Secretary
may agree to match amounts such that
the total amount repaid or cancelled
under this subsection is less than the
amount described in paragraph (1)(A),
so long as the total amount repaid with
respect to each 12-month period
increases.
``(II) Additional payments.--A
sponsoring entity (or a combination of
such sponsoring entities) may provide
more than the match required under
clause (i) if the Secretary determines
that, over the course of providing more
than the matching amount of the
repayments or cancellations under
paragraph (1), the total amount repaid
by such sponsoring entity with respect
to each 12-month period increases.
``(iii) Interest.--The Secretary shall
cancel or repay the interest that accrues on
the total amount of the enrolled loan balance
under paragraph (1)(A), regardless of whether
an exception under clause (ii) applies with
respect to such an enrolled loan balance.
``(C) Default.--In the case of a borrower for which
a sponsoring entity (or a combination of such
sponsoring entities) offers to provide loan
cancellation or repayment under this subsection and
subsequently defaults on such offer, such borrower may
not be held responsible for repayment of the amount
such sponsoring entity (or a combination of such
sponsoring entities) offered to provide such borrower.
``(D) Rules of construction.--Nothing in this
subsection shall preclude--
``(i) the Secretary from establishing a
process to financially assist a sponsoring
entity (or a combination of such sponsoring
entities) that defaults on loan cancellation or
repayment (as described in subparagraph (C)) so
long as such process does not hold a borrower
responsible for any repayments with respect to
such a default; or
``(ii) a sponsoring entity (or a
combination of such sponsoring entities) from
establishing reciprocal agreements, partnering,
collaborating, or otherwise coordinating with
other sponsoring entities to provide matching
funds as required under subparagraph (B)(i) and
avoid default.
``(E) Guidance.--The Secretary shall issue guidance
to assist sponsoring entities (or a combination of such
sponsoring entities) with establishing preference and
developing criteria to select borrowers for sponsorship
under this subsection and to select borrowers to
receive additional payments under subparagraph
(B)(ii)(II).
``(4) Tax treatment of cancelled or repaid amounts.--For
purpose of the Internal Revenue Code of 1986, no amount shall
be included in any person's gross income by reason of the
discharge under this subsection of any indebtedness.
``(5) Department activities.--
``(A) Information for borrowers.--The Secretary
shall establish on the public website of the Department
of Education, and periodically update--
``(i) a list of qualifying areas;
``(ii) a list of sponsoring entities
certified under paragraph (3)(A) available with
respect to such qualifying areas; and
``(iii) contact information for such
sponsoring entities.
``(B) Online portal.--The Secretary shall establish
an online portal through the public website of the
Department of Education for borrowers to--
``(i) certify enrollment in the program
under this section;
``(ii) check the status of an enrollment
certification under this section and the
deadlines with respect to such certifications;
``(iii) check the enrollment status of such
borrower with respect to the program under this
section; and
``(iv) view the amount of assistance the
borrower has received or will receive with
respect to the enrolled loan balance of the
borrower and the dates on which such amounts
were received or will be received.
``(C) Outreach.--The Secretary shall develop and
implement an outreach plan to notify--
``(i) potential sponsoring entities of the
certification process under paragraph (3)(A);
``(ii) sponsoring entities of
recertification requirements under this
subsection; and
``(iii) borrowers (including prospective
borrowers) of eligible loans of the program
under this subsection, including the benefits
of such program and how to meet the
requirements to participate in such program.
``(6) Definitions.--In this subsection:
``(A) Eligible loan.--The term `eligible loan'
means a Federal Direct Stafford Loan, Federal Direct
PLUS Loan, or Federal Direct Unsubsidized Stafford
Loan, a Federal Direct Consolidation Loan, Federal
Family Education Loan, Federal Perkins Loan, or a
private education loan.
``(B) Private education loan.--The term `private
education loan' has the meaning given the term in
section 140 of the Truth in Lending Act (15 U.S.C.
1650).
``(C) Qualifying area.--The term `qualifying area'
means--
``(i) any city or town which has a
population of less than 20,000 inhabitants
other than a city or town in a densely settled
area or adjacent to, or closely associated
with, one or more cities or towns which,
considered collectively, do not meet the
criteria of this subparagraph;
``(ii) any city or town which has a
population of greater than or equal to 20,000
inhabitants and less than 100,000 inhabitants
that with respect to which, during the most
recent 10-year period, the net population loss
from the area equals or exceeds 0 percent of
the population of the area other than a city or
town in a densely settled area or adjacent to,
or closely associated with, one or more cities
or towns which, considered collectively, do not
meet the criteria of this subparagraph;
``(iii) any city or town which has a
population of greater than or equal to 100,000
inhabitants and less than 150,000 inhabitants
that--
``(I) with respect to which, during
the most recent 10-year period, the net
population loss from the area equals or
exceeds 0 percent of the population of
the area;
``(II) the Secretary of Education,
in consultation with the Secretary of
Commerce, determines would economically
benefit from serving as a qualifying
geographic area; and
``(III) is not in a densely settled
area or adjacent to, or closely
associated with, one or more cities or
towns which, considered collectively,
do not meet the criteria of this
subparagraph; or
``(iv) any city or town not described in
clauses (i) through (iii) which has a
population of less than 300,000 inhabitants--
``(I) that is included in a major
disaster declared by the President
under section 401 of the Robert T.
Stafford Disaster Relief and Emergency
Assistance Act (42 U.S.C. 5170) (not
including the major disaster declared
by reason of the novel coronavirus
(COVID-19)) during the five-year period
preceding the date on which a borrower
is enrolled in the program under this
subsection;
``(II) that--
``(aa) the Secretary of
Education, in consultation with
the Secretary of Commerce,
determines would economically
benefit from serving as a
qualifying geographic area; or
``(bb) the Secretary of
Education, in consultation with
the Secretary of Commerce and
the Secretary of Housing and
Urban Development, determines
would support community
recovery by serving as a
qualifying geographic area; and
``(III) is not adjacent to, or
closely associated with, one or more
cities or towns which, considered
collectively, do not meet the criteria
of this subparagraph.
``(D) Fair debt collection practices act terms.--
The terms `creditor' and `debt collector' have the
meaning given those terms, respectively, under section
803 of the Fair Debt Collection Practices Act (15
U.S.C. 1692a).''.
<all>
Introduced in House
Introduced in House
Referred to the Committee on Education and Labor, and in addition to the Committee on Ways and Means, 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 Education and Labor, and in addition to the Committee on Ways and Means, 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.
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