Federal Perkins Loan Program Extension Act of 2015

Summary: (This measure has not been amended since it was passed by the Senate on December 16, 2015.  Federal Perkins Loan Program Extension Act of 2015 (Sec. 2) This bill amends title IV (Student Assistance) of the Higher Education Act of 1965 to extend the authority of institutions of higher education (IHEs) to disburse Federal Perkins Loans to new undergraduate borrowers through September 30, 2017. A student must first exhaust Federal Direct Subsidized and Unsubsidized Stafford Loan eligibility.  IHEs may continue to disburse Perkins Loans to current undergraduate borrowers through September 30, 2017. A student must first exhaust all Federal Direct Subsidized Stafford Loan eligibility. IHEs may continue to disburse Perkins Loans to certain graduate borrowers through September 30, 2016, to enable students to continue or complete an academic program. A student must have received a Perkins loan prior to October 1, 2015.  The bill prohibits Perkins Loan disbursement beyond September 30, 2017.  It also prohibits authorization of additional appropriations for the Federal Perkins Loan program beyond September 30, 2016.  Beginning October 1, 2017, each participating IHE must pay to the Department of Education: (1) a portion of the federal share of the balance of its Perkins Loan funds; (2) a portion of the Perkins student loan payments, including principal and interest, received by the institution; and (3) a capital distribution from its Perkins Loan fund.  (Sec. 3) The bill also expands disclosure requirements for IHEs that participate in the Federal Perkins Loan program.  Specifically, prior to Perkins Loan disbursement, an IHE must provide notice and explanation to all borrowers regarding unavailability of future Perkins loans, limited Perkins loan repayment and forgiveness options, and Direct Loan consolidation options. Also, an IHE must provide notice and explanation to new and current undergraduate borrowers regarding a comparison of Perkins and Direct loan interest rates.&nbsp; 

SECTION 1. SHORT TITLE.
    This Act may be cited as the ``Federal Perkins Loan Program 
Extension Act of 2015''.
SEC. 2. EXTENSION OF FEDERAL PERKINS LOAN PROGRAM.
    (a) Authority to Make Loans.--
        (1) In general.--Section 461 of the Higher Education Act of 
    1965 (20 U.S.C. 1087aa) is amended--
            (A) in subsection (a), by striking ``of stimulating and 
        assisting in the establishment and maintenance of funds at 
        institutions of higher education for the making of low-interest 
        loans to students in need thereof'' and inserting ``assisting 
        in the maintenance of funds at institutions of higher education 
        for the making of loans to undergraduate students in need'';
            (B) by striking subsection (b) and inserting the following:
    ``(b) Authority to Make Loans.--
        ``(1) In general.--
            ``(A) Loans for new undergraduate federal perkins loan 
        borrowers.--Through September 30, 2017, an institution of 
        higher education may make a loan under this part to an eligible 
        undergraduate student who, on the date of disbursement of a 
        loan made under this part, has no outstanding balance of 
        principal or interest on a loan made under this part from the 
        student loan fund established under this part by the 
        institution, but only if the institution has awarded all 
        Federal Direct Loans, as referenced under subparagraphs (A) and 
        (D) of section 455(a)(2), for which such undergraduate student 
        is eligible.
            ``(B) Loans for current undergraduate federal perkins loan 
        borrowers.--Through September 30, 2017, an institution of 
        higher education may make a loan under this part to an eligible 
        undergraduate student who, on the date of disbursement of a 
        loan made under this part, has an outstanding balance of 
        principal or interest on a loan made under this part from the 
        student loan fund established under this part by the 
        institution, but only if the institution has awarded all 
        Federal Direct Stafford Loans as referenced under section 
        455(a)(2)(A) for which such undergraduate student is eligible.
            ``(C) Loans for certain graduate borrowers.--Through 
        September 30, 2016, with respect to an eligible graduate 
        student who has received a loan made under this part prior to 
        October 1, 2015, an institution of higher education that has 
        most recently made such a loan to the student for an academic 
        program at such institution may continue making loans under 
        this part from the student loan fund established under this 
        part by the institution to enable the student to continue or 
        complete such academic program.
        ``(2) No additional loans.--An institution of higher education 
    shall not make loans under this part after September 30, 2017.
        ``(3) Prohibition on additional appropriations.--No funds are 
    authorized to be appropriated under this Act or any other Act to 
    carry out the functions described in paragraph (1) for any fiscal 
    year following fiscal year 2015.''; and
            (C) by striking subsection (c).
        (2) Rule of construction.--Notwithstanding the amendments made 
    under paragraph (1) of this subsection, an eligible graduate 
    borrower who received a disbursement of a loan under part E of 
    title IV of the Higher Education Act of 1965 (20 U.S.C. 1087aa et 
    seq.) after June 30, 2016 and before October 1, 2016, for the 2016-
    2017 award year, may receive a subsequent disbursement of such loan 
    by June 30, 2017, for which the borrower received an initial 
    disbursement after June 30, 2016 and before October 1, 2016.
    (b) Distribution of Assets From Student Loan Funds.--Section 466 of 
the Higher Education Act of 1965 (20 U.S.C. 1087ff) is amended--
        (1) in subsection (a)--
            (A) in the matter preceding paragraph (1), by striking 
        ``After September 30, 2003, and not later than March 31, 2004'' 
        and inserting ``Beginning October 1, 2017''; and
            (B) in paragraph (1), by striking ``September 30, 2003'' 
        and inserting ``September 30, 2017'';
        (2) in subsection (b)--
            (A) by striking ``After October 1, 2012'' and inserting 
        ``Beginning October 1, 2017''; and
            (B) by striking ``September 30, 2003'' and inserting 
        ``September 30, 2017''; and
        (3) in subsection (c)(1), by striking ``October 1, 2004'' and 
    inserting ``October 1, 2017''.
    (c) Additional Extensions Not Permitted.--Section 422 of the 
General Education Provisions Act (20 U.S.C. 1226a) shall not apply to 
further extend the duration of the authority under paragraph (1) of 
section 461(b) of the Higher Education Act of 1965 (20 U.S.C. 
1087aa(b)), as amended by subsection (a)(1) of this section, beyond 
September 30, 2017, on the basis of the extension under such 
subsection.
SEC. 3. DISCLOSURE REQUIRED PRIOR TO DISBURSEMENT.
    Section 463A(a) of the Higher Education Act of 1965 (20 U.S.C. 
1087cc-1(a)) is amended--
        (1) in paragraph (12), by striking ``and'' after the semicolon;
        (2) in paragraph (13), by striking the period at the end and 
    inserting a semicolon; and
        (3) by adding at the end the following:
        ``(14) a notice and explanation regarding the end to future 
    availability of loans made under this part;
        ``(15) a notice and explanation that repayment and forgiveness 
    benefits available to borrowers of loans made under part D are not 
    available to borrowers participating in the loan program under this 
    part;
        ``(16) a notice and explanation regarding a borrower's option 
    to consolidate a loan made under this part into a Federal Direct 
    Loan under part D, including any benefit of such consolidation;
        ``(17) with respect to new undergraduate Federal Perkins loan 
    borrowers, as described in section 461(b)(1)(A), a notice and 
    explanation providing a comparison of the interest rates of loans 
    under this part and part D and informing the borrower that the 
    borrower has reached the maximum annual borrowing limit for which 
    the borrower is eligible as referenced under subparagraphs (A) and 
    (D) of section 455(a)(2); and
        ``(18) with respect to current undergraduate Federal Perkins 
    loan borrowers, as described in section 461(b)(1)(B), a notice and 
    explanation providing a comparison of the interest rates of loans 
    under this part and part D and informing the borrower that the 
    borrower has reached the maximum annual borrowing limit for which 
    the borrower is eligible on Federal Direct Stafford Loans as 
    referenced under section 455(a)(2)(A).''.

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.