I 

113TH CONGRESS 

1ST SESSION H. R. 2349 

To restore and extend the grace period of Federal Direct Stafford Loans 

and Federal Direct Unsubsidized Stafford Loans. 

IN THE HOUSE OF REPRESENTATIVES 

JUNE 13, 2013 

Mrs. NEGRETE MCLEOD (for herself and 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 of 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 ‘‘Get Relief from Aca5 demic Debt Act of 2013’’ or the ‘‘GRAD Act of 2013’’. 

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

7 THE REPAYMENT PERIOD OF CERTAIN FED8 ERAL DIRECT LOANS. 

9 (a) RESTORATION OF INTEREST SUBSIDY DURING

10 FIRST 6-MONTH GRACE PERIOD.—Section 


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1 428(a)(3)(A)(i)(I) of the Higher Education Act of 1965 

2 (20 U.S.C. 1078(a)(3)(A)(i)(I)) is amended by inserting 

3 ‘‘or, for a Federal Direct Stafford Loan for which the first 

4 disbursement is made on or after July 1, 2013, which ac5 crues prior to the beginning of the repayment period of 

6 the loan (except for interest which accrues during the last 

7 6-months prior to the beginning of such period, in the case 

8 of a student who makes an election under section 3(b)(2) 

9 of the Get Relief from Academic Debt Act of 2013),’’ be10 fore ‘‘, or’’. 

11 (b) GRACE-PERIOD EXTENSION.— 

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

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

14 1078(b)(7)) is amended— 

15 (A) in subparagraph (A), by inserting ‘‘or, 

16 in the case of a student who makes an election 

17 under section 3(b)(2) of the Get Relief from 

18 Academic Debt Act of 2013, 12 months’’ after 

19 ‘‘6 months’’; and 

20 (B) in subparagraph (D), by inserting ‘‘or, 

21 in the case of a student who makes an election 

22 under section 3(b)(2) of the Get Relief from 

23 Academic Debt Act of 2013, the 12-month pe24 riod’’ after ‘‘6-month period’’. 


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1 (2) ELECTION OF EXTENDED GRACE PERIOD

2 FOR CERTAIN FDSL AND FDUS LOANS.—The Sec3 retary of Education shall provide an opportunity for 

4 each borrower who has a Federal Direct Stafford 

5 Loan or Federal Direct Unsubsidized Stafford Loan 

6 for which the first disbursement is made on or after 

7 July 1, 2013, to elect a 12-month grace period, in 

8 accordance with section 428(b)(7) of the Higher 

9 Education Act of 1965, as amended by this sub10 section, before beginning repayment. The Secretary 

11 shall— 

12 (A) notify each such borrower of the op13 portunity for such an election not later than 45 

14 days before the start of the borrower’s repay15 ment period, as determined under section 

16 428(b)(7) of the Higher Education Act of 1965 

17 as in effect on the day before the date of enact18 ment of this Act; 

19 (B) advise each such borrower of the fi20 nancial consequences of electing such 12-month 

21 grace period; and 

22 (C) not require such a borrower to accept 

23 a 12-month grace period in accordance with 

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

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


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1 the borrower specifically elects such 12-month 

2 grace period not later than 14 days before the 

3 start of the borrower’s repayment period, as de4 termined under section 428(b)(7) of the Higher 

5 Education Act of 1965 as in effect on the day 

6 before the date of enactment of this Act. 

Æ 


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