I 

114TH CONGRESS 

1ST SESSION H. R. 4260 

To protect servicemembers in higher education, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

DECEMBER 15, 2015 

Ms. SINEMA (for herself, Mr. COSTELLO of Pennsylvania, and Mr. COFFMAN) 

introduced the following bill; which was referred to the Committee on 

Education and the Workforce, and in addition to the Committees on Veterans’ Affairs and Armed Services, 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 protect servicemembers in higher education, and for other 

purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Servicemember Higher 

5 Education Protection Act’’. 

6 SEC. 2. REFERENCES. 

7 Except as otherwise expressly provided, wherever in 

8 this Act an amendment or repeal is expressed in terms 

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1 sion, the reference shall be considered to be made to a 

2 section or other provision of the Higher Education Act of 

3 1965 (20 U.S.C. 1001 et seq.). 

4 SEC. 3. BENEFITS FOR BORROWERS WHO ARE MEMBERS 

5 OF THE ARMED FORCES. 

6 Section 131(f) (20 U.S.C. 1015(f)) is amended to 

7 read as follows: 

8 ‘‘(f) BENEFITS FOR MEMBERS OF THE ARMED

9 FORCES.— 

10 ‘‘(1) WEBSITE.— 

11 ‘‘(A) IN GENERAL.—The Secretary, in co12 ordination with the Secretary of Defense, the 

13 Secretary of Veterans Affairs, and the Sec14 retary of Homeland Security, shall create a re15 vised and updated searchable Internet website 

16 that— 

17 ‘‘(i) contains information, in simple 

18 and understandable terms, about all Fed19 eral and State student financial assistance, 

20 readmission requirements under section 

21 484C, and other student services, for 

22 which members of the Armed Forces (in23 cluding members of the National Guard 

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1 ents of such members or veterans may be 

2 eligible; and 

3 ‘‘(ii) is easily accessible through the 

4 Internet website described in subsection 

5 (e)(3). 

6 ‘‘(B) IMPLEMENTATION.—Not later than 1 

7 year after the date of enactment of the Service8 member Higher Education Protection Act, the 

9 Secretary shall make publicly available the re10 vised and updated Internet website described in 

11 subparagraph (A). 

12 ‘‘(C) DISSEMINATION.—The Secretary, in 

13 coordination with the Secretary of Defense and 

14 the Secretary of Veterans Affairs, shall make 

15 the availability of the Internet website described 

16 in subparagraph (A) widely known to members 

17 of the Armed Forces (including members of the 

18 National Guard and Reserves), veterans, the 

19 dependents of such members or veterans, 

20 States, institutions of higher education, and the 

21 general public. 

22 ‘‘(D) DEFINITION.—In this paragraph, the 

23 term ‘Federal and State student financial as24 sistance’ means any grant, loan, work assist25 ance, tuition assistance, scholarship, fellowship, 


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1 or other form of financial aid for pursuing a 

2 postsecondary education that is— 

3 ‘‘(i) administered, sponsored, or sup4 ported by the Department of Education, 

5 the Department of Defense, the Depart6 ment of Veterans Affairs, or a State; and 

7 ‘‘(ii) available to members of the 

8 Armed Forces (including members of the 

9 National Guard and Reserves), veterans, 

10 or the dependents of such members or vet11 erans. 

12 ‘‘(2) ENROLLMENT FORM.— 

13 ‘‘(A) IN GENERAL.—The Secretary, in con14 sultation with the Secretary of Defense and the 

15 heads of any other relevant Federal agencies, 

16 shall create a simplified disclosure and enroll17 ment form for borrowers who are performing el18 igible military service (as defined in section 

19 481(d)). 

20 ‘‘(B) CONTENTS.—The disclosure and en21 rollment form described in subparagraph (A) 

22 shall include— 

23 ‘‘(i) information about the benefits 

24 and protections under title IV and under 

25 the Servicemembers Civil Relief Act (50 


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1 U.S.C. App. 501 et seq.) that are available 

2 to such borrower because the borrower is 

3 performing eligible military service; and 

4 ‘‘(ii) an opportunity for the borrower, 

5 by completing the enrollment form, to in6 voke certain protections, activate certain 

7 benefits, and enroll in certain programs 

8 that may be available to that borrower, 

9 which shall include the opportunity— 

10 ‘‘(I) to invoke applicable protec11 tions that are available under the 

12 Servicemembers Civil Relief Act (50 

13 U.S.C. App. 501 et seq.), as such pro14 tections relate to Federal student 

15 loans under title IV; and 

16 ‘‘(II) to activate or enroll in any 

17 other applicable benefits that are 

18 available to such borrower under this 

19 Act because the borrower is per20 forming eligible military service, such 

21 as eligibility for a deferment or eligi22 bility for a period during which inter23 est shall not accrue. 

24 ‘‘(C) IMPLEMENTATION.—Not later than 

25 365 days after the date of the enactment of the 


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1 Servicemember Higher Education Protection 

2 Act, the Secretary shall make available to eligi3 ble institutions, eligible lenders, and personnel 

4 at the Department of Defense and other Fed5 eral agencies that provide services to borrowers 

6 who are members of the Armed Forces or the 

7 dependents of such members, the disclosure and 

8 enrollment form described in subparagraph (A). 

9 ‘‘(D) NOTICE REQUIREMENTS.— 

10 ‘‘(i) SCRA INTEREST RATE LIMITA11 TION.—The completion of the disclosure 

12 and enrollment form created pursuant to 

13 subparagraph (A) by the borrower of a 

14 loan made, insured, or guaranteed under 

15 part B or part D of title IV who is other16 wise subject to the interest rate limitation 

17 in subsection (a) of section 207 of the 

18 Servicemembers Civil Relief Act (50 U.S.C. 

19 App. 527(a)) and submittal of such form 

20 to the Secretary shall be considered, for 

21 purposes of such section, provision to the 

22 creditor of written notice as described in 

23 subsection (b)(1) of such section. 

24 ‘‘(ii) FFEL LENDERS.—The Sec25 retary shall provide each such disclosure 


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1 and enrollment form completed and sub2 mitted by a borrower of a loan made, in3 sured, or guaranteed under part B of title 

4 IV who is otherwise subject to the interest 

5 rate limitation in subsection (a) of section 

6 207 of the Servicemembers Civil Relief Act 

7 (50 U.S.C. App. 527(a)) to any applicable 

8 eligible lender under part B of title IV so 

9 as to satisfy the provision to the lender of 

10 written notice as described in subsection 

11 (b)(1) of such section.’’. 

12 SEC. 4. RESPONSIBILITIES OF FSA OMBUDSMAN; ADDITION 

13 OF POINT OF CONTACT FOR MILITARY FAMI14 LIES. 

15 Section 141(f) (20 U.S.C. 1018(f)) is amended— 

16 (1) by redesignating paragraph (4) as para17 graph (5); and 

18 (2) by inserting after paragraph (3) the fol19 lowing: 

20 ‘‘(4) MILITARY AND VETERAN POINT OF CON21 TACT.— 

22 ‘‘(A) IN GENERAL.—The Chief Operating 

23 Officer, in consultation with the Secretary, shall 

24 designate 1 or more employees to act as the 


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1 military and veteran point of contact within the 

2 office of the Student Loan Ombudsman. 

3 ‘‘(B) FUNCTIONS.—The designated mili4 tary and veteran point of contact described in 

5 subparagraph (A) shall— 

6 ‘‘(i) monitor the complaints received 

7 from the Ombudsman under paragraph 

8 (3)(A) from, and provide timely assistance 

9 to, members of the Armed Forces (includ10 ing members of the National Guard and 

11 Reserves), veterans, and their dependents; 

12 ‘‘(ii) coordinate with other agencies, 

13 including the Department of Defense, the 

14 Department of Veterans Affairs, and the 

15 Department of Homeland Security, to en16 sure that members of the Armed Forces, 

17 veterans, and the dependents of members 

18 of the Armed Forces and veterans, who are 

19 students, borrowers, or potential bor20 rowers, are aware of the availability and 

21 functions of the Ombudsman; and 

22 ‘‘(iii) issue to the Committee on 

23 Health, Education, Labor, and Pensions of 

24 the Senate, the Committee on Education 

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1 resentatives, the Committee on Veterans’ 

2 Affairs of the Senate, the Committee on 

3 Veterans’ Affairs of the House of Rep4 resentatives, the Committee on Armed 

5 Services of the Senate, and the Committee 

6 on Armed Services of the House of Rep7 resentatives an annual report on the chal8 lenges that such members of the Armed 

9 Forces, veterans, and dependents are fac10 ing as students, borrowers, and potential 

11 borrowers.’’. 

12 SEC. 5. IMPROVED DISABILITY DETERMINATIONS. 

13 (a) IN GENERAL.—Section 437(a) (20 U.S.C. 

14 1087(a)) is amended— 

15 (1) by striking paragraph (2) and inserting the 

16 following: 

17 ‘‘(2) DETERMINATION BY THE SECRETARY OF

18 VETERANS AFFAIRS OR THE SECRETARY OF DE19 FENSE.— 

20 ‘‘(A) IN GENERAL.—A borrower who has 

21 been assigned a disability rating of 100 percent 

22 (or a combination of ratings equaling 100 per23 cent or more) by the Secretary of Veterans Af24 fairs or the Secretary of Defense for a service25 connected disability (as defined in section 101 


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1 of title 38, United States Code) and who pro2 vides documentation of such rating to the Sec3 retary of Education, shall be considered perma4 nently and totally disabled for the purpose of 

5 discharging such borrower’s loans under this 

6 subsection, and such borrower shall not be re7 quired to present any additional documentation 

8 for purposes of this subsection. 

9 ‘‘(B) RATING OF DISABILITY.—A disability 

10 rating described in subparagraph (A), or similar 

11 determination of unemployability by the Sec12 retary of Veterans Affairs or the Secretary of 

13 Defense, transmitted in accordance with sub14 paragraph (C) shall be considered sufficient 

15 documentation for purposes of this subsection. 

16 ‘‘(C) TRANSFER OF INFORMATION.—Not 

17 later than 180 days after the date of enactment 

18 of the Servicemember Higher Education Protec19 tion Act, the Secretary, in coordination with the 

20 Secretary of Defense and the Secretary of Vet21 erans Affairs, shall create a system through 

22 which the applicable disability ratings (or alter23 native means of transmitting a determination of 

24 unemployability) shall be automatically trans25 mitted from the Department of Defense or the 


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1 Department of Veterans Affairs, as the case 

2 may be, to the Department of Education and 

3 shall satisfy the documentation requirement de4 scribed in this paragraph.’’; and 

5 (2) by adding at the end the following: 

6 ‘‘(3) DISABILITY DETERMINATIONS BY THE SO7 CIAL SECURITY ADMINISTRATION.—A borrower who 

8 has been determined by the Social Security Adminis9 tration to be disabled with medical improvement not 

10 expected and who provides documentation of such 

11 determination to the Secretary of Education, shall 

12 be considered permanently and totally disabled for 

13 the purpose of discharging such borrower’s loans 

14 under this subsection, and such borrower shall not 

15 be required to present additional documentation for 

16 purposes of this subsection. 

17 ‘‘(4) REINSTATEMENT PROVISIONS.—A bor18 rower of a loan that is discharged under paragraph 

19 (2) or (3) shall not be subject to the reinstatement 

20 provisions described in paragraph (1). 

21 ‘‘(5) DATA COLLECTION AND REPORT TO CON22 GRESS.— 

23 ‘‘(A) DATA COLLECTION.—The Secretary 

24 shall annually collect data about borrowers ap25 plying for, and borrowers receiving, loan disVerDate Sep 11 2014 06:25 Dec 16, 2015 Jkt 059200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\H4260.IH H4260

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1 charges under this subsection, which shall in2 clude the following: 

3 ‘‘(i) Data regarding— 

4 ‘‘(I) the number of applications 

5 received under this subsection; 

6 ‘‘(II) the number of such applica7 tions that were approved; and 

8 ‘‘(III) the number of loan dis9 charges that were completed under 

10 this subsection. 

11 ‘‘(ii) A summary of the reasons why 

12 the Secretary reinstated the obligation of, 

13 and resumed collection on, loans dis14 charged under this subsection. 

15 ‘‘(iii) The data described in subclauses 

16 (I) through (III) of clause (i), and clause 

17 (ii), for each of the following: 

18 ‘‘(I) Borrowers applying for, and 

19 borrowers receiving, loan discharges 

20 under paragraph (2)(A). 

21 ‘‘(II) Borrowers applying for, and 

22 borrowers receiving, loan discharges 

23 under paragraph (2)(B). 


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1 ‘‘(III) Borrowers applying for, 

2 and borrowers receiving, loan dis3 charges under paragraph (3). 

4 ‘‘(iv) Any other information the Sec5 retary determines is necessary. 

6 ‘‘(B) REPORT.—The Secretary shall annu7 ally report to Congress, and make publicly 

8 available, the information described in subpara9 graph (A).’’. 

10 (b) REPORTS.— 

11 (1) PLAN.—Not later than 90 days after the 

12 date of the enactment of this Act, the Secretary of 

13 Education shall submit to the appropriate commit14 tees of Congress a report that includes a plan to 

15 carry out the activities described under section 

16 437(a)(2)(B)(iii) of the Higher Education Act of 

17 1965 (20 U.S.C. 1087(a)(2)(B)(iii)), as amended by 

18 this section. 

19 (2) FOLLOW-UP REPORT.—If the Secretary of 

20 Education has not carried out the activities de21 scribed under section 437(a)(2)(B)(iii) of the Higher 

22 Education Act of 1965, as amended by this section, 

23 by the date that is 1 year after the date of enact24 ment of this Act, the Secretary of Education shall 

25 submit to the appropriate committees of Congress, 


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1 by such date, a report that includes an explanation 

2 of why those activities have not been implemented. 

3 SEC. 6. LOAN DEFERMENT FOR BORROWERS PERFORMING 

4 MILITARY SERVICE AND CERTAIN SPOUSES 

5 OF MEMBERS OF THE ARMED FORCES. 

6 (a) FFEL LOANS.—Section 428(b)(1)(M) (20 

7 U.S.C. 1078(b)(1)(M)) is amended— 

8 (1) by redesignating clause (iv) as clause (v); 

9 (2) in clause (iii), by striking ‘‘the 

10 borrower—’’ and all that follows through ‘‘described 

11 in subclause (I) or (II); or’’ and inserting ‘‘the bor12 rower is performing eligible military service, and for 

13 the 180-day period following the demobilization date 

14 for such eligible military service;’’; and 

15 (3) by inserting after clause (iii) the following: 

16 ‘‘(iv) not in excess of 180 days after 

17 the effective movement date listed on the 

18 military orders of a borrower’s spouse if 

19 that spouse is a member of the Armed 

20 Forces who has received military orders for 

21 a permanent change of station; or’’. 

22 (b) DIRECT LOANS.—Section 455(f)(2) (20 U.S.C. 

23 1087e(f)(2)) is amended— 

24 (1) by redesignating subparagraph (D) as sub25 paragraph (E); 


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1 (2) in subparagraph (C), by striking ‘‘the bor2 rower—’’ and all that follows through ‘‘described in 

3 clause (i) or (ii); or’’ and inserting ‘‘the borrower is 

4 performing eligible military service, and for the 180- 

5 day period following the demobilization date for such 

6 eligible military service;’’; and 

7 (3) by inserting after subparagraph (C) the fol8 lowing: 

9 ‘‘(D) any period not in excess of 180 days 

10 after the effective movement date listed on the 

11 military orders of a borrower’s spouse if that 

12 spouse is a member of the Armed Forces who 

13 has received military orders for a permanent 

14 change of station; or’’. 

15 (c) DEFINITION.—Section 481(d) (20 U.S.C. 

16 1088(d)) is amended— 

17 (1) by redesignating paragraphs (2) through 

18 (5) as paragraphs (3) through (6), respectively; and 

19 (2) by inserting after paragraph (1) the fol20 lowing: 

21 ‘‘(2) ELIGIBLE MILITARY SERVICE.—The term 

22 ‘eligible military service’— 

23 ‘‘(A) in the case of a member of a regular 

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1 tive duty for training (as defined in section 101 

2 of title 38, United States Code); 

3 ‘‘(B) in the case of a member of the re4 serve components of the Armed Forces, means 

5 service on active duty under a call or order to 

6 active duty under section 688, 12301(a), 

7 12301(d), 12301(g), 12302, or 12304 of title 

8 10, United States Code, or section 712 of title 

9 14, United States Code; 

10 ‘‘(C) in the case of a member of the Army 

11 National Guard of the United States or Air Na12 tional Guard of the United States, means, in 

13 addition to service described in subparagraph 

14 (B), full-time service— 

15 ‘‘(i) in the National Guard of a State 

16 for the purpose of organizing, admin17 istering, recruiting, instructing, or training 

18 the National Guard; or 

19 ‘‘(ii) in the National Guard under sec20 tion 502(f) of title 32, United States Code, 

21 when authorized by the President or the 

22 Secretary of Defense for the purpose of re23 sponding to a national emergency declared 

24 by the President and supported by Federal 

25 funds; 


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1 ‘‘(D) in the case of a servicemember who 

2 is a commissioned officer of the Public Health 

3 Service or the National Oceanic and Atmos4 pheric Administration, active service; and 

5 ‘‘(E) does not include any period during 

6 which an individual— 

7 ‘‘(i) was assigned full time by the 

8 Armed Forces to a civilian institution for 

9 a course of education that was substan10 tially the same as established courses of11 fered to civilians; 

12 ‘‘(ii) serves as a cadet or midshipman 

13 at one of the military service academies of 

14 the United States; or 

15 ‘‘(iii) serves under the provisions of 

16 section 12103(d) of title 10, United States 

17 Code, pursuant to an enlistment in the 

18 Army National Guard or the Air National 

19 Guard, or as a Reserve for service in the 

20 Army Reserve, Navy Reserve, Air Force 

21 Reserve, Marine Corps Reserve, or Coast 

22 Guard Reserve.’’. 

23 SEC. 7. PUBLIC SERVICE LOAN FORGIVENESS. 

24 Section 455(m) (20 U.S.C. 1087e(m)) is amended— 


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1 (1) by redesignating paragraphs (3) and (4) as 

2 paragraphs (4) and (5), respectively; and 

3 (2) by inserting after paragraph (2) the fol4 lowing: 

5 ‘‘(3) LUMP SUM PAYMENT.—For purposes of 

6 this subsection, if a borrower has enrolled in a re7 payment plan described in paragraph (1)(A) and 

8 makes a lump sum payment through a student loan 

9 repayment program under section 2171 of title 10, 

10 United States Code, or a similarly structured eligible 

11 repayment program (as determined by the Sec12 retary), the Secretary will treat the borrower as hav13 ing made a number of qualifying payments equal to 

14 the lesser of— 

15 ‘‘(A) the number, rounded to the nearest 

16 whole number, equal to the quotient of— 

17 ‘‘(i) such lump sum payment, divided 

18 by 

19 ‘‘(ii) the monthly payment amount 

20 that the borrower would have otherwise 

21 made under the repayment plan described 

22 in paragraph (1)(A) selected by the bor23 rower; or 

24 ‘‘(B) 12 payments.’’. 


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1 SEC. 8. ACCRUAL OF INTEREST FOR MEMBERS OF THE 

2 ARMED FORCES SUBJECT TO HOSTILE FIRE 

3 OR IMMINENT DANGER. 

4 Section 455(o) (20 U.S.C. 1087e(o)) is amended— 

5 (1) by striking paragraph (1) and inserting the 

6 following: 

7 ‘‘(1) ACCRUAL OF INTEREST FOR MEMBERS OF

8 THE ARMED FORCES SUBJECT TO HOSTILE FIRE OR

9 IMMINENT DANGER.—Notwithstanding any other 

10 provision of this part and in accordance with para11 graphs (2) and (4), the Secretary shall not charge 

12 interest on a loan made to a borrower under this 

13 part for which the first disbursement is made on or 

14 after October 1, 2008, during the period in which a 

15 borrower who is performing eligible military service 

16 is serving in an area of hostilities in which service 

17 qualifies for special pay under section 310 of title 

18 37, United States Code.’’; 

19 (2) by striking paragraph (3) and inserting the 

20 following: 

21 ‘‘(3) IMPLEMENTATION OF ACCRUAL OF INTER22 EST PROVISION FOR MEMBERS OF THE ARMED

23 FORCES.— 

24 ‘‘(A) IN GENERAL.—The Secretary of Edu25 cation, in coordination with the Commissioner 


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1 of the Internal Revenue Service and the Sec2 retary of Defense, shall— 

3 ‘‘(i) ensure that interest does not ac4 crue for eligible military borrowers, in ac5 cordance with this subsection; and 

6 ‘‘(ii) obtain or provide any informa7 tion necessary to implement clause (i) 

8 without requiring a request from the bor9 rower. 

10 ‘‘(B) REPORTS.— 

11 ‘‘(i) PLAN.—Not later than 90 days 

12 after the date of enactment of the Service13 member Higher Education Protection Act, 

14 the Secretary shall submit to the appro15 priate committees of Congress a report 

16 that includes a plan to implement the ac17 crual of interest provision described in sub18 paragraph (A). 

19 ‘‘(ii) FOLLOW-UP REPORT.—If the 

20 Secretary has not implemented the accrual 

21 of interest provision described in subpara22 graph (A) by the date that is 1 year after 

23 the date of enactment of the Servicemem24 ber Higher Education Protection Act, the 

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1 port that includes an explanation of why 

2 such provision has not been implemented.’’; 

3 and 

4 (3) in paragraph (4), by striking ‘‘who qualifies 

5 as an eligible military borrower under this sub6 section’’ and inserting ‘‘described in paragraph (1)’’. 

7 SEC. 9. IMPROVEMENTS TO NATIONAL STUDENT LOAN 

8 DATA SYSTEM. 

9 (a) AMENDMENTS.—Section 485B (20 U.S.C. 

10 1092b) is amended— 

11 (1) in subsection (a), by inserting ‘‘and loans 

12 made or insured under part A of title VII, or part 

13 E of title VIII, of the Public Health Service Act (42 

14 U.S.C. 292 et seq., 296 et seq.),’’ after ‘‘parts D 

15 and E,’’; 

16 (2) by striking subsection (h) and inserting the 

17 following: 

18 ‘‘(h) INTEGRATION OF DATABASES.— 

19 ‘‘(1) IN GENERAL.—The Secretary shall inte20 grate the National Student Loan Data System with 

21 the Federal Pell Grant applicant and recipient data22 bases as of January 1, 1994, and any other data23 bases containing information on participation in pro24 grams under this title. 


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1 ‘‘(2) DEPARTMENT OF DEFENSE AND DEPART2 MENT OF VETERANS AFFAIRS INFORMATION.— 

3 ‘‘(A) IN GENERAL.—In order to incor4 porate the military and veteran status of bor5 rowers into the National Student Loan Data 

6 System, the Secretary shall integrate the Na7 tional Student Loan Data System with informa8 tion from— 

9 ‘‘(i) the Department of Defense, in10 cluding the Defense Manpower Data Cen11 ter; and 

12 ‘‘(ii) the Department of Veterans Af13 fairs, including data about veterans who 

14 are eligible for educational assistance 

15 under laws administered by the Secretary 

16 of Veterans Affairs. 

17 ‘‘(B) MEMORANDA OF UNDERSTANDING.— 

18 The Secretary shall enter into any memoranda 

19 of understanding that are necessary to carry 

20 out this paragraph.’’; and 

21 (3) by adding at the end the following: 

22 ‘‘(i) PUBLIC HEALTH SERVICE LOANS.—The Sec23 retary shall include in the National Student Loan Data 

24 System established pursuant to subsection (a) information 

25 regarding loans made under— 


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1 ‘‘(1) subpart II of part A of title VII of the 

2 Public Health Service Act; or 

3 ‘‘(2) part E of title VIII of the Public Health 

4 Service Act.’’. 

5 (b) REPORTS.— 

6 (1) PLAN.—Not later than 90 days after the 

7 date of the enactment of this Act, the Secretary of 

8 Education shall submit to the appropriate commit9 tees of Congress a report that includes a plan to im10 plement the Department of Defense and Department 

11 of Veterans Affairs data integration provision de12 scribed under section 485B(h)(2) of the Higher 

13 Education Act of 1965, as amended by subsection 

14 (a)(2). 

15 (2) FOLLOW-UP REPORT.—If the Secretary of 

16 Education has not implemented the Department of 

17 Defense and Department of Veterans Affairs data 

18 integration provision described under section 

19 485B(h)(2) of the Higher Education Act of 1965, as 

20 amended by subsection (a)(2), by the date that is 1 

21 year after the date of enactment of this Act, the 

22 Secretary of Education shall submit, by such date, 

23 a report that includes an explanation of why such 

24 provision has not been implemented. 


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1 SEC. 10. EXTENDING THE PROTECTIONS FOR STUDENT 

2 LOANS FOR ACTIVE DUTY BORROWERS. 

3 Section 493D (20 U.S.C. 1098f) is amended— 

4 (1) in the section heading, by inserting ‘‘AND

5 PROTECTIONS FOR ACTIVE DUTY BORROWERS’’ 

6 before the period at the end; 

7 (2) by redesignating subsection (b) as sub8 section (c); and 

9 (3) by inserting after subsection (a) the fol10 lowing: 

11 ‘‘(b) USE OF INFORMATION.— 

12 ‘‘(1) IN GENERAL.—The Secretary shall utilize 

13 information the Secretary receives regarding the ac14 tive duty status of borrowers from the Secretary of 

15 Defense for any purpose under this title to ensure 

16 that the interest rate charged on any loan made 

17 under part D of title IV for borrowers who are sub18 ject to section 207(a)(1) of the Servicemembers Civil 

19 Relief Act (50 U.S.C. App. 527(a)(1)) does not ex20 ceed the maximum interest rate set forth in such 

21 section. 

22 ‘‘(2) SCRA INTEREST RATE LIMITATION NO23 TICE REQUIREMENTS.—The submittal by the Sec24 retary of Defense to the Secretary of Education of 

25 information that informs the Secretary of Education 

26 that an individual with a student loan under part D 


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1 of title IV has been or is being called to military 

2 service (as defined in section 101 of the 

3 Servicemembers Civil Relief Act (50 U.S.C. 511)) 

4 shall be considered, for purposes of subjecting such 

5 student loan to the provisions of section 207 of the 

6 Servicemembers Civil Relief Act (50 U.S.C. App. 

7 527), provision by the borrower to the creditor of 

8 written notice and a copy of military orders as de9 scribed in subsection (b)(1) of such section. 

10 ‘‘(3) PROCEDURES.—Not later than 180 days 

11 after the date of enactment of the Servicemember 

12 Higher Education Protection Act, the Secretary, in 

13 consultation with the Department of Defense, shall 

14 establish a procedure to implement this subsection.’’. 

15 SEC. 11. MODIFICATION OF LIMITATION ON RATE OF IN16 TEREST ON STUDENT LOANS DURING AND 

17 IMMEDIATELY AFTER PERIOD OF MILITARY 

18 SERVICE. 

19 (a) EXTENSION OF PERIOD OF APPLICABILITY OF

20 LIMITATION ON RATE OF INTEREST ON STUDENT LOANS

21 INCURRED BEFORE SERVICE.—Section 207(a)(1) of the 

22 Servicemembers Civil Relief Act (50 U.S.C. App. 

23 527(a)(1)) is amended— 

24 (1) in subparagraph (A), by inserting ‘‘or a stu25 dent loan’’ after ‘‘nature of a mortgage’’; and 


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1 (2) in the paragraph heading, by inserting ‘‘ON

2 DEBT INCURRED BEFORE SERVICE’’ after ‘‘LIMITA3 TION TO 6 PERCENT’’. 

4 (b) DEBT ENTERED INTO DURING MILITARY SERV5 ICE TO CONSOLIDATE OR REFINANCE STUDENT LOANS

6 INCURRED BEFORE MILITARY SERVICE.—Subsection (a) 

7 of section 207 of such Act (50 U.S.C. App. 527) is amend8 ed— 

9 (1) by redesignating paragraphs (2) and (3) as 

10 paragraphs (3) and (4), respectively; 

11 (2) by inserting after paragraph (1) the fol12 lowing: 

13 ‘‘(2) LIMITATION TO 6 PERCENT ON DEBT IN14 CURRED DURING SERVICE TO CONSOLIDATE OR RE15 FINANCE STUDENT LOANS INCURRED BEFORE SERV16 ICE.—An obligation or liability bearing interest at a 

17 rate in excess of 6 percent per year that is incurred 

18 by a servicemember, or the servicemember and the 

19 servicemember’s spouse jointly, during military serv20 ice to consolidate or refinance one or more student 

21 loans incurred by the servicemember before such 

22 military service shall not bear an interest at a rate 

23 in excess of 6 percent during the period of military 

24 service and one year thereafter.’’; 


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1 (3) in paragraph (3), as redesignated by para2 graph (1) of this subsection, by inserting ‘‘or (2)’’ 

3 after ‘‘paragraph (1)’’; and 

4 (4) in paragraph (4), as so redesignated, by 

5 striking ‘‘paragraph (2)’’ and inserting ‘‘paragraph 

6 (3)’’. 

7 (c) IMPLEMENTATION OF LIMITATION.—Subsection 

8 (b) of such section is amended— 

9 (1) in paragraph (1), by striking ‘‘the interest 

10 rate limitation in subsection (a)’’ and inserting ‘‘an 

11 interest rate limitation in paragraph (1) or (2) of 

12 subsection (a)’’; and 

13 (2) in paragraph (2)— 

14 (A) in the paragraph heading, by striking 

15 ‘‘AS OF DATE OF ORDER TO ACTIVE DUTY’’; and 

16 (B) by inserting before the period at the 

17 end the following: ‘‘in the case of an obligation 

18 or liability covered by subsection (a)(1), or as of 

19 the date the servicemember (or servicemember 

20 and spouse jointly) incurs the obligation or li21 ability concerned under subsection (a)(2)’’. 

22 (d) STUDENT LOAN DEFINED.—Subsection (d) of 

23 such section is amended by adding at the end the following 

24 new paragraph: 


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1 ‘‘(3) STUDENT LOAN.—The term ‘student loan’ 

2 means the following: 

3 ‘‘(A) A Federal student loan made, in4 sured, or guaranteed under title IV of the 

5 Higher Education Act of 1965 (20 U.S.C. 1070 

6 et seq.). 

7 ‘‘(B) A student loan made pursuant to title 

8 VII or VIII of the Public Health Service Act 

9 (42 U.S.C. 292 et seq. and 296 et seq.).’’. 

10 SEC. 12. WORKING GROUP ON IMPROVEMENT OF RE11 SOURCES AVAILABLE TO MEMBERS OF THE 

12 ARMED FORCES AND THEIR SPOUSES IN 

13 USING TUITION ASSISTANCE PROGRAMS OF 

14 THE DEPARTMENT OF DEFENSE. 

15 (a) WORKING GROUP REQUIRED.—The Secretary of 

16 Education, the Secretary of Defense, and the Secretary 

17 of Veterans Affairs shall jointly, and in consultation with 

18 the heads of such other departments and agencies of the 

19 Federal Government as such officials consider appro20 priate, establish and maintain a working group to assess 

21 and improve the resources available to education service 

22 officers and other personnel of the Federal Government 

23 who provide assistance to members of the Armed Forces 

24 and their spouses in using or seeking to use the tuition 

25 assistance programs of the Department of Defense. 


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1 (b) RESOURCES.—In improving resources as de2 scribed in subsection (a), the working group shall provide 

3 for the inclusion of the following in such resources: 

4 (1) Information on the benefits and protections 

5 for members of the Armed Forces and their depend6 ents provided in this Act and the amendments made 

7 by this Act. 

8 (2) Consumer information, resources, and tools 

9 created and maintained by the working group pursu10 ant to this section. 

11 (3) Information on the availability of consumer 

12 protection measures, including the complaint system 

13 established pursuant to Executive Order 13607 (77 

14 Fed. Reg. 25861; relating to establishing principles 

15 of excellence for educational institutions serving 

16 servicemembers, veterans, spouses, and other family 

17 members). 

18 (4) Such other information or resources as the 

19 working group considers appropriate. 

20 SEC. 13. EXCEPTION FOR SERVICEMEMBERS CIVIL RELIEF 

21 ACT. 

22 Section 428(d) (20 U.S.C. 1078(d)) is amended by 

23 striking ‘‘section 207 of the Servicemembers Civil Relief 

24 Act (50 U.S.C. App. 527)’’ and inserting ‘‘the 


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1 Servicemembers Civil Relief Act (50 U.S.C. App. 501 et 

2 seq.)’’. 

Æ 


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