COVID-19 Student Loan Relief Extension Act
This bill extends certain temporary relief related to federal student loans and expands eligibility for such relief to additional types of loans.
Specifically, the bill extends the current suspension of payments due on federal student loans to 30 days after the end of the COVID-19 (i.e., coronavirus disease 2019) public health emergency. It also extends the suspension of interest due on these loans until the economy shows specified initial signs of recovery.
Further, the bill expands eligibility for temporary relief on federal student loans to include Federal Family Education Loans (FFELs) and Federal Perkins Loans that are not held by the Department of Education (ED) and certain health profession and nursing loans. (Currently, these temporary relief provisions are only applicable to certain Federal Direct Loans and FFELs that are held by ED.) Additionally, the bill makes this eligibility retroactive to March 13, 2020.
Finally, ED and the Department of Health and Human Services must carry out a program, beginning on August 1, 2021, to provide at least six notices to borrowers that normal payment obligations will resume.
[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 394 Introduced in House (IH)]
<DOC>
117th CONGRESS
1st Session
H. R. 394
To expand loan relief to all Federal student loan borrowers, and for
other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
January 21, 2021
Mr. Courtney (for himself, Mrs. Hayes, Ms. Wild, Ms. Williams of
Georgia, Mr. Cohen, Mr. Perlmutter, Mr. Himes, Mr. Larson of
Connecticut, Mr. Swalwell, Mr. Kilmer, Ms. DelBene, Mr. Welch, Ms.
Underwood, and Mr. Michael F. Doyle of Pennsylvania) introduced the
following bill; which was referred to the Committee on Education and
Labor
_______________________________________________________________________
A BILL
To expand loan relief to all Federal student loan borrowers, 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 ``COVID-19 Student Loan Relief
Extension Act''.
SEC. 2. EXPANDING LOAN RELIEF TO ALL FEDERAL STUDENT LOAN BORROWERS.
Section 3502(a) of division A of the Coronavirus Aid, Relief, and
Economic Security Act (Public Law 116-136) is amended--
(1) by redesignating paragraphs (2) through (5) as
paragraphs (3) through (6), respectively; and
(2) by inserting after paragraph (1) the following:
``(2) Federal student loan.--The term `Federal student
loan' means a loan--
``(A) made under part D, part B, or part E of title
IV of the Higher Education Act of 1965 (20 U.S.C. 1070
et seq.), and held by the Department of Education;
``(B) made, insured, or guaranteed under part B of
such title, or made under part E of such title, and not
held by the Department of Education; or
``(C) made under--
``(i) subpart II of part A of title VII of
the Public Health Service Act (42 U.S.C. 292q
et seq.); or
``(ii) part E of title VIII of the Public
Health Service Act (42 U.S.C. 297a et seq.).''.
SEC. 3. EXTENDING THE LENGTH OF BORROWER RELIEF DUE TO THE CORONAVIRUS
EMERGENCY.
Section 3513 of division A of the Coronavirus Aid, Relief, and
Economic Security Act (Public Law 116-136) is amended--
(1) by amending subsection (a) to read as follows:
``(a) Suspension of Payments.--
``(1) In general.--During the period beginning on March 13,
2020, and ending 30 days after the termination date of the
public health emergency declared by the Secretary of Health and
Human Services on January 31, 2020, under section 319 of the
Public Health Services Act (42 U.S.C. 247d) in response to
COVID-19, the Secretary or, as applicable, the Secretary of
Health and Human Services, shall suspend all payments due on
Federal student loans.
``(2) Transition period.--For one additional 30-day period
beginning on the day after the last day of the suspension
period described in subsection (a), the Secretary or, as
applicable, the Secretary of Health and Human Services, shall
ensure that any missed payments on a Federal student loan by a
borrower during such additional 30-day period--
``(A) do not result in collection fees or penalties
associated with late payments; and
``(B) are not reported to any consumer reporting
agency or otherwise impact the borrower's credit
history.
``(3) Determination of compensation.--The Secretary or, as
applicable, the Secretary of Health and Human Services shall--
``(A) with respect to a holder of a Federal student
loan defined in subparagraph (B) or (C) of section
3502(a)(2)--
``(i) determine any losses for such holder
due to the suspension of payments on such loan
under paragraph (1); and
``(ii) establish reasonable compensation
for such losses; and
``(B) not later than 60 days after the date of
enactment of the COVID-19 Student Loan Relief Extension
Act, with respect to a borrower who made a payment on a
Federal student loan defined in subparagraph (B) or (C)
of section 3502(a)(2) during the period beginning on
March 13, 2020, and ending on such date of enactment,
the Secretary shall pay to the borrower, an amount
equal to the lower of--
``(i) the amount paid by the borrower on
such loan during such period; or
``(ii) the amount that was due on such loan
during such period.
``(4) Recertification.--A borrower who is repaying a
Federal student loan pursuant to an income-contingent repayment
plan under section 455(d)(1)(D) of the Higher Education Act of
1965 (20 U.S.C. 1087e(d)(1)(D)) or an income-based repayment
plan under section 493C of such Act (20 U.S.C. 1098e) shall not
be required to recertify the income or family size of the
borrower under such plan prior to December 31, 2021.'';
(2) in subsection (c), by striking ``part D or B of title
IV of the Higher Education Act of 1965 (20 U.S.C. 1087a et
seq.; 1071 et seq.)'' and inserting ``part B, D, or E of title
IV of the Higher Education Act of 1965 (20 U.S.C. 1087a et
seq.; 1071 et seq.; 1087aa et seq.)'';
(3) in subsection (d), by striking ``During the period in
which the Secretary suspends payments on a loan under
subsection (a), the Secretary'' and inserting ``During the
period in which payments on a Federal student loan are
suspended under subsection (a), the Secretary or, as
applicable, the Secretary of Health and Human Services'';
(4) in subsection (e), by striking ``During the period in
which the Secretary suspends payments on a loan under
subsection (a), the Secretary'' and inserting ``During the
period in which payments on a Federal student loan are
suspended under subsection (a), the Secretary or, as
applicable, the Secretary of Health and Human Services''; and
(5) in subsection (f), by striking ``the Secretary'' and
inserting ``the Secretary or, as applicable, the Secretary of
Health and Human Services,''.
SEC. 4. NO INTEREST ACCRUAL.
Section 3513(b) of division A of the Coronavirus Aid, Relief, and
Economic Security Act (Public Law 116-136) is amended to read as
follows:
``(b) Providing Interest Relief.--
``(1) No accrual of interest.--
``(A) In general.--During the period described in
subparagraph (D), interest on a Federal student loan
shall not accrue or shall be paid by the Secretary (or
the Secretary of Health and Human Services) during--
``(i) the repayment period of such loan;
``(ii) any period excluded from the
repayment period of such loan (including any
period of deferment or forbearance);
``(iii) any period in which the borrower of
such loan is in a grace period; or
``(iv) any period in which the borrower of
such loan is in default on such loan.
``(B) Direct loans and department of education held
ffel and perkins loans.--For purposes of subparagraph
(A), interest shall not accrue on a Federal student
loan defined in section 3502(a)(2)(A).
``(C) FFEL and perkins loans not held by the
department of education and hhs loans.--For purposes of
subparagraph (A)--
``(i) in the case of a Federal student loan
defined in section 3502(a)(2)(B), the Secretary
shall pay, on a monthly basis, the amount of
interest due on the unpaid principal of such
loan to the holder of such loan, except that
any payments made under this clause shall not
affect payment calculations under section 438
of the Higher Education Act of 1965 (20 U.S.C.
1087-1); and
``(ii) in the case of a Federal student
loan defined in section 3502(a)(2)(C), the
Secretary of Health and Human Services shall
pay, on a monthly basis, the amount of interest
due on the unpaid principal of such loan to the
holder of such loan.
``(D) Period described.--
``(i) In general.--The period described in
this subparagraph is the period beginning on
March 13, 2020, and ending the day following
the date of the enactment of the COVID-19
Student Loan Relief Extension Act that is 2
months after the national U-5 measure of labor
underutilization shows initial signs of
recovery.
``(ii) Definitions.--In this subparagraph:
``(I) National u-5 measure of labor
underutilization.--The term `national
U-5 measure of labor underutilization'
means the seasonally-adjusted, monthly
U-5 measure of labor underutilization
published by the Bureau of Labor
Statistics.
``(II) Initial signs of recovery.--
The term `initial signs of recovery'
means that the average national U-5
measure of labor underutilization for
months in the most recent 3-
consecutive-month period for which data
are available--
``(aa) is lower than the
highest value of the average
national U-5 measure of labor
underutilization for a 3-
consecutive-month period during
the period beginning in March
2020 and the most recent month
for which data from the Bureau
of Labor Statistics are
available by an amount that is
equal to or greater than one-
third of the difference
between--
``(AA) the highest
value of the average
national U-5 measure of
labor underutilization
for a 3-consecutive-
month period during
such period; and
``(BB) the value of
the average national U-
5 measure of labor
underutilization for
the 3-consecutive-month
period ending in
February 2020; and
``(bb) has decreased for
each month during the most
recent 2 consecutive months for
which data from the Bureau of
Labor Statistics are available.
``(E) Other definitions.--In this paragraph:
``(i) Default.--The term `default'--
``(I) in the case of a Federal
student loan made, insured, or
guaranteed under part B or D of the
Higher Education Act of 1965, has the
meaning given such term in section
435(l) of the Higher Education Act of
1965 (20 U.S.C. 1085);
``(II) in the case of a Federal
student loan made under part E of the
Higher Education Act of 1965, has the
meaning given such term in section
674.2 of title 34, Code of Federal
Regulations (or successor regulations);
or
``(III) in the case of a Federal
student loan defined in section
3502(a)(2)(C), has the meaning given
such term in section 721 or 835 of the
Public Health Service Act (42 U.S.C.
292q, 297a), as applicable.
``(ii) Grace period.--The term `grace
period' means--
``(I) in the case of a Federal
student loan made, insured, or
guaranteed under part B or D of the
Higher Education Act of 1965, the 6-
month period after the date the student
ceases to carry at least one-half the
normal full-time academic workload, as
described in section 428(b)(7) of the
Higher Education Act of 1965 (20 U.S.C.
1078(b)(7));
``(II) in the case of a Federal
student loan made under part E of the
Higher Education Act of 1965, the 9-
month period after the date on which a
student ceases to carry at least one-
half the normal full-time academic
workload, as described in section
464(c)(1)(A) of the Higher Education
Act of 1965 (20 U.S.C.
1087dd(c)(1)(A)); and
``(III) in the case of a Federal
student loan defined in section
3502(a)(2)(C), the 1-year period
described in section 722(c) of the
Public Health Service Act (42 U.S.C.
292r(c)) or the 9-month period
described in section 836(b)(2) of such
Act (42 U.S.C. 297b(b)(2)), as
applicable.
``(iii) Repayment period.--The term
`repayment period' means--
``(I) in the case of a Federal
student loan made, insured, or
guaranteed under part B or D of the
Higher Education Act of 1965, the
repayment period described in section
428(b)(7) of the Higher Education Act
of 1965 (20 U.S.C. 1078(b)(7));
``(II) in the case of a Federal
student loan made under part E of the
Higher Education Act of 1965, the
repayment period described in section
464(c)(4) of the Higher Education Act
of 1965 (20 U.S.C. 1087dd(c)(4)); or
``(III) in the case of a Federal
student loan defined in section
3502(a)(2)(C), the repayment period
described in section 722(c) or
836(b)(2) of the Public Health Service
Act (42 U.S.C. 292r(c), 297b(b)(2)), as
applicable.
``(2) Interest refund in lieu of retroactive
applicability.--By not later than 60 days after the date of
enactment of the COVID-19 Student Loan Relief Extension Act,
the Secretary or, as applicable, the Secretary of Health and
Human Services, shall, for each Federal student loan defined in
subparagraph (B) or (C) of section 3502(a)(2) for which
interest was not paid by such Secretary pursuant to paragraph
(1) during the period beginning on March 13, 2020 and ending on
such date of enactment--
``(A) determine the amount of interest due (or that
would have been due in the absence of being voluntarily
paid by the holder of such loan) on such loan during
the period beginning March 13, 2020, and ending on such
date of enactment; and
``(B) refund the amount of interest calculated
under subparagraph (A), by--
``(i) paying the holder of the loan the
amount of the interest calculated under
subparagraph (A), to be applied to the loan
balance for the borrower of such loan; or
``(ii) if there is no outstanding balance
or payment due on the loan as of the date on
which the refund is to be provided, providing a
payment in the amount of the interest
calculated under subparagraph (A) directly to
the borrower.
``(3) Suspension of interest capitalization.--
``(A) In general.--With respect to any Federal
student loan, interest that accrued but had not been
paid prior to March 13, 2020, and had not been
capitalized as of such date, shall not be capitalized.
``(B) Transition.--The Secretary or, as applicable,
the Secretary of Health and Human Services, shall
ensure that any interest on a Federal student loan that
is capitalized in violation of subparagraph (A) is
corrected and the balance of principal and interest due
for the Federal student loan is adjusted
accordingly.''.
SEC. 5. NOTICE TO BORROWERS.
Section 3513(g) of division A of the Coronavirus Aid, Relief, and
Economic Security Act (Public Law 116-136) is amended--
(1) in the matter preceding paragraph (1), by striking
``the Secretary'' and inserting ``the Secretary or, as
applicable, the Secretary of Health and Human Services,'';
(2) in paragraph (1)(D), by striking the period and
inserting a semicolon;
(3) in paragraph (2)--
(A) in the matter preceding subparagraph (A), by
striking ``August 1, 2020'' and inserting ``August 1,
2021'';
(B) by amending subparagraph (B) to read as
follows:
``(B) that--
``(i) a borrower of a Federal student loan
made, insured, or guaranteed under part B or D
of title IV of the Higher Education Act of 1965
may be eligible to enroll in an income-
contingent repayment plan under section
455(d)(1)(D) of the Higher Education Act of
1965 (20 U.S.C. 1087e(d)(1)(D)) or an income-
based repayment plan under section 493C of such
Act (20 U.S.C. 1098e), including a brief
description of such repayment plans; and
``(ii) in the case of a borrower of a
Federal student loan defined in section
3502(a)(2)(C) or made under part E of title IV
of the Higher Education of 1965, the borrower
may be eligible to enroll in such a repayment
plan if the borrower consolidates such loan
with a loan described in clause (i) of this
subparagraph, and receives a Federal Direct
Consolidation Loan under part D of the Higher
Education of 1965 (20 U.S.C. 1087a et seq.);
and''; and
(C) by adding at the end the following:
``(3) in a case in which the accrual of interest on Federal
student loans is suspended under subsection (b)(1) beyond
September 30, 2021, during the 2-month period beginning on the
date on which the national U-5 measure of labor
underutilization shows initial signs of recovery (as such terms
are defined in subsection (b)(1)(D)) carry out a program to
provide not less than 6 notices by postal mail, telephone, or
electronic communication to borrowers--
``(A) indicating when the interest on Federal
student loans of the borrower will resume accrual and
capitalization; and
``(B) the information described in paragraph
(2)(B).''.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Education and Labor.
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