I 

112TH CONGRESS 

2D SESSION H. R. 4286 

To restore and extend the grace period before repayment begins on Federal 

Direct Stafford Loans and Federal Direct Unsubsidized Stafford Loans. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 28, 2012 

Ms. HAHN introduced the following bill; which was referred to the Committee 

on Education and the Workforce 

A BILL 

To restore and extend the grace period before repayment 

begins on Federal Direct Stafford Loans and Federal 

Direct Unsubsidized Stafford Loans. 

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 ‘‘Student Loan Grace 

5 Period Extension Act’’. 

6 SEC. 2. RESTORATION AND EXTENSION OF THE START OF 

7 THE REPAYMENT PERIOD FOR CERTAIN FED8 ERAL DIRECT LOANS. 

9 (a) RESTORATION OF INTEREST SUBSIDY DURING

10 GRACE PERIOD.—Section 309(d) of title III of division F 


jbell on DSK7SPTVN1PROD with BILLS
2 

•HR 4286 IH

1 of Public Law 112–74 (amending section 

2 428(a)(3)(A)(i)(I) of the Higher Education Act of 1965 

3 (20 U.S.C. 1078(a)(3)(A)(i)(I))) is repealed, and the pro4 visions of law amended by such section are restored or 

5 revived as if such section had not been enacted. 

6 (b) GRACE PERIOD EXTENSION.— 

7 (1) AMENDMENT.—Section 428(b)(7) of the 

8 Higher Education Act of 1965 (20 U.S.C. 

9 1078(b)(7)) is amended— 

10 (A) in subparagraph (A), by striking ‘‘6 

11 months’’ and inserting ‘‘12 months’’; and 

12 (B) in subparagraph (D), by striking ‘‘6- 

13 month period’’ and inserting ‘‘12-month pe14 riod’’. 

15 (2) EFFECTIVE DATE AND APPLICATION.—The 

16 amendments made by paragraph (1) shall take effect 

17 on the date of enactment of this section, and shall 

18 apply with respect to— 

19 (A) Federal Direct Stafford Loans and 

20 Federal Direct Unsubsidized Stafford Loans 

21 made on or after such date of enactment; 

22 (B) Federal Direct Stafford Loans made 

23 before such date of enactment to borrowers who 

24 have not yet entered repayment on such loans 

25 on such date of enactment; and 


jbell on DSK7SPTVN1PROD with BILLS
3 

•HR 4286 IH

1 (C) Federal Direct Unsubsidized Stafford 

2 Loans made before such date of enactment to 

3 borrowers who— 

4 (i) have not yet entered repayment on 

5 such loans on the date that is 60 days 

6 after such date of enactment; and 

7 (ii) elect a 12-month grace period in 

8 accordance with paragraph (3). 

9 (3) ELECTION OF EXTENDED GRACE PERIOD

10 FOR CERTAIN FDUS LOANS.—The Secretary of Edu11 cation shall provide an opportunity for each bor12 rower who has a Federal Direct Unsubsidized Staf13 ford Loan that was made before the date of enact14 ment of this section and who has not yet entered re15 payment on such loan on the date that is 60 days 

16 after such date of enactment to elect a 12-month 

17 grace period, in accordance with section 428(b)(7) of 

18 the Higher Education Act of 1965, as amended by 

19 this subsection, before beginning repayment. The 

20 Secretary shall— 

21 (A) notify each such borrower of the op22 portunity for such an election not later than 30 

23 days after such date of enactment; 


jbell on DSK7SPTVN1PROD with BILLS
4 

•HR 4286 IH

1 (B) advise each such borrower of the fi2 nancial consequences of electing such 12-month 

3 grace period; 

4 (C) not require such a borrower to accept 

5 a 12-month grace period in accordance with 

6 section 428(b)(7) of the Higher Education Act 

7 of 1965 (as amended by this subsection), unless 

8 the borrower specifically elects such 12-month 

9 grace period during the 90-day period begin10 ning on the day the Secretary notifies such bor11 rower of the option to elect such a 12-month 

12 grace period, except that a borrower shall make 

13 such an election no later than 10 days before 

14 the start of the borrower’s repayment period, as 

15 determined under section 428(b)(7) of the 

16 Higher Education Act of 1965 as in effect on 

17 the day before the date of enactment of this 

18 section; and 

19 (D) in the case of such a borrower who 

20 does not elect such a 12-month grace period 

21 during the period described in subparagraph 

22 (C), determine the start of the borrower’s re23 payment period in accordance with section 

24 428(b)(7) of the Higher Education Act of 1965 


jbell on DSK7SPTVN1PROD with BILLS
5 

•HR 4286 IH

1 as in effect on the day before the date of enact2 ment of this section. 

Æ 


jbell on DSK7SPTVN1PROD with BILLS