II 

116TH CONGRESS 

2D SESSION S. 4141 

To refinance Federal and private student loans, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

JULY 1, 2020 

Ms. WARREN (for herself, Ms. BALDWIN, Mr. BENNET, Mr. BLUMENTHAL, 

Mr. BOOKER, Mr. BROWN, Ms. CANTWELL, Mr. CARDIN, Mr. CASEY, Ms. 

CORTEZ MASTO, Ms. DUCKWORTH, Mr. DURBIN, Mrs. FEINSTEIN, Mrs. 

GILLIBRAND, Ms. HARRIS, Ms. HASSAN, Mr. HEINRICH, Ms. HIRONO, 

Ms. KLOBUCHAR, Mr. LEAHY, Mr. MANCHIN, Mr. MARKEY, Mr. MENENDEZ, Mr. MERKLEY, Mr. MURPHY, Mr. PETERS, Mr. REED, Mr. SANDERS, Mrs. SHAHEEN, Ms. SMITH, Ms. STABENOW, Mr. UDALL, Mr. VAN

HOLLEN, Mr. WHITEHOUSE, and Mr. WYDEN) introduced the following 

bill; which was read twice and referred to the Committee on Health, Education, Labor, and Pensions 

A BILL 

To refinance Federal and private student loans, 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 ‘‘Bank on Students 

5 Coronavirus Emergency Loan Refinancing Act of 2020’’. 


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1 SEC. 2. REFINANCING PROGRAM. 

2 (a) PROGRAM AUTHORITY.—Section 451(a) of the 

3 Higher Education Act of 1965 (20 U.S.C. 1087a(a)) is 

4 amended— 

5 (1) by striking ‘‘and (2)’’ and inserting ‘‘(2)’’; 

6 and 

7 (2) by inserting ‘‘; and (3) to make loans under 

8 section 460A and section 460B’’ after ‘‘section 

9 459A’’. 

10 (b) REFINANCING PROGRAM.—Part D of title IV of 

11 the Higher Education Act of 1965 (20 U.S.C. 1087a et 

12 seq.) is amended by adding at the end the following: 

13 ‘‘SEC. 460A. REFINANCING FEDERAL DIRECT LOANS AND 

14 OTHER FEDERAL LOANS. 

15 ‘‘(a) DEFINITIONS.—In this section: 

16 ‘‘(1) FFEL, PERKINS, OR PHSA STUDENT

17 LOAN.—The term ‘FFEL, Perkins, or PHSA stu18 dent loan’ means a loan— 

19 ‘‘(A) made, insured, or guaranteed under 

20 part B and for which the first disbursement 

21 was made, or the application for the consolida22 tion loan was received, before July 1, 2010; 

23 ‘‘(B) made under part E; or 

24 ‘‘(C) made under— 


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

2 of the Public Health Service Act (42 

3 U.S.C. 292q et seq.); or 

4 ‘‘(ii) part E of title VIII of the Public 

5 Health Service Act (42 U.S.C. 297a et 

6 seq.). 

7 ‘‘(2) QUALIFIED BORROWER.—The term ‘quali8 fied borrower’ means a borrower of a loan under this 

9 part, or FFEL, Perkins, or PHSA student loan, for 

10 which the first disbursement was made, or the appli11 cation for a consolidation loan was received, before 

12 July 1, 2020. 

13 ‘‘(b) IN GENERAL.—Beginning not later than 90 

14 days after the date of enactment of the Bank on Students 

15 Coronavirus Emergency Loan Refinancing Act of 2020, 

16 the Secretary shall establish a program under which the 

17 Secretary makes a loan under this part, in accordance 

18 with the provisions of this section, in order to permit a 

19 qualified borrower to obtain the interest rate provided 

20 under subsection (d). 

21 ‘‘(c) REFINANCING DIRECT LOANS.— 

22 ‘‘(1) FEDERAL DIRECT LOANS.— 

23 ‘‘(A) IN GENERAL.—By not later than 120 

24 days after the date of enactment of the Bank 

25 on Students Coronavirus Emergency Loan RefiVerDate Sep 11 2014 17:26 Jul 14, 2020 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S4141.IS S4141

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1 nancing Act of 2020, the Secretary shall repay 

2 a Federal Direct Stafford Loan, a Federal Di3 rect Unsubsidized Stafford Loan, a Federal Di4 rect PLUS Loan, or a Federal Direct Consoli5 dation Loan of the qualified borrower, for which 

6 the first disbursement was made, or the appli7 cation for the consolidation loan was received, 

8 before July 1, 2020, with the proceeds of a refi9 nanced Federal Direct Stafford Loan, a Federal 

10 Direct Unsubsidized Stafford Loan, a Federal 

11 Direct PLUS Loan, or a Federal Direct Con12 solidation Loan, respectively, issued to the bor13 rower under this section in an amount equal to 

14 the sum of the unpaid principal, accrued unpaid 

15 interest, and late charges of the original loan. 

16 ‘‘(B) INFORMATION.—The Secretary shall 

17 notify each qualified borrower of a loan refi18 nanced under subparagraph (A) regarding the 

19 refinancing and the benefits the refinancing 

20 provides to the qualified borrower. 

21 ‘‘(2) REFINANCING FFEL, PERKINS, OR PHSA

22 STUDENT LOANS AS REFINANCED FEDERAL DIRECT

23 LOANS.—Upon application of a qualified borrower of 

24 any FFEL, Perkins, or PHSA student loan, the 

25 Secretary shall make a loan under this part, in an 


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1 amount equal to the sum of the unpaid principal, ac2 crued unpaid interest, and late charges of the origi3 nal loan to the borrower in accordance with the fol4 lowing: 

5 ‘‘(A) The Secretary shall pay the proceeds 

6 of such loan to the holder of the FFEL, Per7 kins, or PHSA student loan, in order to dis8 charge the borrower from any remaining obliga9 tion with respect to the original loan. 

10 ‘‘(B) Any Federal student loan made 

11 under this section that was originally a loan de12 scribed in subsection (a)(1)(A) and that was 

13 made, insured, or guaranteed— 

14 ‘‘(i) under section 428 shall be a Fed15 eral Direct Stafford Loan; 

16 ‘‘(ii) under section 428B shall be a 

17 Federal Direct PLUS Loan; 

18 ‘‘(iii) under section 428H shall be a 

19 Federal Direct Unsubsidized Stafford 

20 Loan; and 

21 ‘‘(iv) under section 428C shall be a 

22 Federal Direct Consolidation Loan. 

23 ‘‘(C) Any Federal student loan made under 

24 this section that was originally a loan described 


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1 in subparagraph (B) or (C) of subsection (a)(1) 

2 shall be a Federal Direct Consolidation Loan. 

3 ‘‘(D) The interest rate for each loan made 

4 by the Secretary under this paragraph shall be 

5 the rate provided under subsection (d). 

6 ‘‘(d) INTEREST RATES.— 

7 ‘‘(1) IN GENERAL.—The interest rate for the 

8 refinanced Federal Direct Stafford Loans, Federal 

9 Direct Unsubsidized Stafford Loans, Federal Direct 

10 PLUS Loans, and Federal Direct Consolidation 

11 Loans, shall be a rate equal to— 

12 ‘‘(A) in any case where the original loan 

13 was a loan under section 428 or 428H, a Fed14 eral Direct Stafford loan, or a Federal Direct 

15 Unsubsidized Stafford Loan, that was issued to 

16 an undergraduate student, a rate equal to the 

17 rate for Federal Direct Stafford Loans and 

18 Federal Direct Unsubsidized Stafford Loans 

19 issued to undergraduate students for the 12- 

20 month period beginning on July 1, 2020, and 

21 ending on June 30, 2021; 

22 ‘‘(B) in any case where the original loan 

23 was a loan under section 428 or 428H, a Fed24 eral Direct Stafford Loan, or a Federal Direct 

25 Unsubsidized Stafford Loan, that was issued to 


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1 a graduate or professional student, a rate equal 

2 to the rate for Federal Direct Unsubsidized 

3 Stafford Loans issued to graduate or profes4 sional students for the 12-month period begin5 ning on July 1, 2020, and ending on June 30, 

6 2021; 

7 ‘‘(C) in any case where the original loan 

8 was a loan under section 428B or a Federal Di9 rect PLUS Loan, a rate equal to the rate for 

10 Federal Direct PLUS Loans for the 12-month 

11 period beginning on July 1, 2020, and ending 

12 on June 30, 2021; 

13 ‘‘(D) in any case where the original loan 

14 was a loan under section 428C or a Federal Di15 rect Consolidation Loan, a rate calculated in ac16 cordance with paragraph (2); and 

17 ‘‘(E) in any case where the original loan 

18 was a Federal student loan described in sub19 paragraph (B) or (C) of subsection (a)(1), the 

20 lesser of— 

21 ‘‘(i)(I) in any case where the original 

22 loan was issued to an undergraduate stu23 dent, the rate that applies under subpara24 graph (A); or 


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1 ‘‘(II) in any case where the original 

2 loan was issued to a graduate or profes3 sional student, the rate that applies under 

4 subparagraph (B); or 

5 ‘‘(ii) the original interest rate of the 

6 loan. 

7 ‘‘(2) INTEREST RATES FOR REFINANCED CON8 SOLIDATION LOANS.— 

9 ‘‘(A) METHOD OF CALCULATION.—In 

10 order to determine the interest rate for any re11 financed Federal Direct Consolidation Loan 

12 under paragraph (1)(D), the Secretary shall— 

13 ‘‘(i) determine each of the component 

14 loans that were originally consolidated in 

15 the loan under section 428C or the Federal 

16 Direct Consolidation Loan, and calculate 

17 the proportion of the unpaid principal bal18 ance of the loan under section 428C or the 

19 Federal Direct Consolidation Loan that 

20 each component loan represents; 

21 ‘‘(ii) use the proportions determined 

22 in accordance with clause (i) and the inter23 est rate applicable for each component 

24 loan, as determined under subparagraph 

25 (B), to calculate the weighted average of 


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1 the interest rates on the loans consolidated 

2 into the loan under section 428C or the 

3 Federal Direct Consolidation Loan; and 

4 ‘‘(iii) apply the weighted average cal5 culated under clause (ii) as the interest 

6 rate for the refinanced Federal Direct Con7 solidation Loan. 

8 ‘‘(B) INTEREST RATES FOR COMPONENT

9 LOANS.—The interest rates for the component 

10 loans of a loan made under section 428C or a 

11 Federal Direct Consolidation Loan shall be the 

12 following: 

13 ‘‘(i) The interest rate for any loan 

14 under section 428 or 428H, Federal Direct 

15 Stafford Loan, or Federal Direct Unsub16 sidized Stafford Loan, that is issued to an 

17 undergraduate student shall be a rate 

18 equal to the lesser of— 

19 ‘‘(I) the rate for Federal Direct 

20 Stafford Loans and Federal Direct 

21 Unsubsidized Stafford Loans issued 

22 to undergraduate students for the 12- 

23 month period beginning on July 1, 

24 2020, and ending on June 30, 2021; 

25 or 


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1 ‘‘(II) the original interest rate of 

2 the component loan. 

3 ‘‘(ii) The interest rate for any loan 

4 under section 428 or 428H, Federal Direct 

5 Stafford Loan, or Federal Direct Unsub6 sidized Stafford Loan, that is issued to a 

7 graduate or professional student shall be a 

8 rate equal to the lesser of— 

9 ‘‘(I) the rate for Federal Direct 

10 Unsubsidized Stafford Loans issued 

11 to graduate or professional students 

12 for the 12-month period beginning on 

13 July 1, 2020, and ending on June 30, 

14 2021; or 

15 ‘‘(II) the original interest rate of 

16 the component loan. 

17 ‘‘(iii) The interest rate for any loan 

18 under section 428B or Federal Direct 

19 PLUS Loan shall be a rate equal to the 

20 lesser of— 

21 ‘‘(I) the rate for Federal Direct 

22 PLUS Loans for the 12-month period 

23 beginning on July 1, 2020, and end24 ing on June 30, 2021; or 


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1 ‘‘(II) the original interest rate of 

2 the component loan. 

3 ‘‘(iv) The interest rate for any loan 

4 under part E of this title, or subpart II of 

5 part A of title VII or part E of title VIII 

6 of the Public Health Service Act (42 

7 U.S.C. 292q et seq.; 297a et seq.), shall be 

8 a rate equal to the lesser of— 

9 ‘‘(I) the rate for Federal Direct 

10 Stafford Loans and Federal Direct 

11 Unsubsidized Stafford Loans issued 

12 to graduate students for the 12-month 

13 period beginning on July 1, 2020, and 

14 ending on June 30, 2021; or 

15 ‘‘(II) the original interest rate of 

16 the component loan. 

17 ‘‘(v) The interest rate for any compo18 nent loan that is a loan under section 

19 428C or a Federal Direct Consolidation 

20 Loan shall be the weighted average of the 

21 interest rates that would apply under this 

22 subparagraph for each loan comprising the 

23 component consolidation loan. 

24 ‘‘(3) FIXED RATE.—The applicable rate of in25 terest determined under paragraph (1) for a refiVerDate Sep 11 2014 22:32 Jul 15, 2020 Jkt 099200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\S4141.IS S4141

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1 nanced loan under this section shall be fixed for the 

2 period of the loan. 

3 ‘‘(4) RULE OF CONSTRUCTION.—Nothing in 

4 this section shall be construed to prevent a borrower 

5 of a Federal student loan described in subparagraph 

6 (B) or (C) of subsection (a)(1) from consolidating 

7 such loans with other loans eligible for consolidation 

8 under this section, or to require such a borrower to 

9 consolidate such loans with other Federal student 

10 loans into a single consolidation loan under this sec11 tion. 

12 ‘‘(e) TERMS AND CONDITIONS OF LOANS.— 

13 ‘‘(1) IN GENERAL.—A loan that is refinanced 

14 under this section shall have the same terms and 

15 conditions as the original loan, except as otherwise 

16 provided in this section. 

17 ‘‘(2) NO AUTOMATIC EXTENSION OF REPAY18 MENT PERIOD.—Refinancing a loan under this sec19 tion shall not result in the extension of the duration 

20 of the repayment period of the loan, and the bor21 rower shall retain the same repayment term that 

22 was in effect on the original loan. Nothing in this 

23 paragraph shall be construed to prevent a borrower 

24 from electing a different repayment plan at any time 

25 in accordance with section 455(d)(3). 


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1 ‘‘(3) SPECIAL RULE FOR REFINANCED PERKINS

2 AND HEALTH LOANS.—Notwithstanding paragraph 

3 (1), in the case of a loan that is refinanced under 

4 this section as a Federal Direct Consolidation Loan 

5 and that was originally a loan described in subpara6 graph (B) or (C) of subsection (a)(1)— 

7 ‘‘(A) the refinanced Federal Direct Con8 solidation Loan shall have the same terms and 

9 conditions as a Federal Direct Consolidation 

10 Loan, except as otherwise provided in this sec11 tion; and 

12 ‘‘(B) the Secretary may adjust such terms 

13 and conditions as necessary to enable the bor14 rower to access loan forgiveness or other bene15 fits available to the borrower under the loan be16 fore refinancing under this section, in any case 

17 where such benefits are more generous than 

18 provided under a Federal Direct Consolidation 

19 Loan. 

20 ‘‘(f) NOTIFICATION TO BORROWERS.—The Secretary, 

21 in coordination with the Director of the Bureau of Con22 sumer Financial Protection, shall undertake a campaign 

23 to alert borrowers of FFEL, Perkins, or PHSA student 

24 loans that are eligible for refinancing under this section 

25 that the borrowers are eligible to apply for such refiVerDate Sep 11 2014 17:26 Jul 14, 2020 Jkt 099200 PO 00000 Frm 00013 Fmt 6652 Sfmt 6201 E:\BILLS\S4141.IS S4141

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1 nancing. The campaign shall include the following activi2 ties: 

3 ‘‘(1) Developing consumer information mate4 rials about the availability of Federal student loan 

5 refinancing. 

6 ‘‘(2) Requiring servicers of loans under part B 

7 to provide such consumer information to borrowers 

8 in a manner determined appropriate by the Sec9 retary, in consultation with the Director of the Bu10 reau of Consumer Financial Protection. 

11 ‘‘SEC. 460B. FEDERAL DIRECT REFINANCED PRIVATE LOAN 

12 PROGRAM. 

13 ‘‘(a) DEFINITIONS.—In this section: 

14 ‘‘(1) ELIGIBLE PRIVATE EDUCATION LOAN.— 

15 The term ‘eligible private education loan’ means a 

16 private education loan, as defined in section 140(a) 

17 of the Truth in Lending Act (15 U.S.C. 1650(a)), 

18 that— 

19 ‘‘(A) was disbursed to the borrower before 

20 July 1, 2020; and 

21 ‘‘(B) was for the borrower’s own postsec22 ondary educational expenses for an eligible pro23 gram at an institution of higher education par24 ticipating in the loan program under this part, 

25 as of the date that the loan was disbursed. 


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1 ‘‘(2) FEDERAL DIRECT REFINANCED PRIVATE

2 LOAN.—The term ‘Federal Direct Refinanced Pri3 vate Loan’ means a loan issued under subsection 

4 (b)(1). 

5 ‘‘(3) PRIVATE EDUCATIONAL LENDER.—The 

6 term ‘private educational lender’ has the meaning 

7 given the term in section 140(a) of the Truth in 

8 Lending Act (15 U.S.C. 1650(a)). 

9 ‘‘(4) QUALIFIED BORROWER.—The term ‘quali10 fied borrower’ means an individual who has an eligi11 ble private education loan. 

12 ‘‘(b) PROGRAM AUTHORIZED.— 

13 ‘‘(1) IN GENERAL.—The Secretary, in consulta14 tion with the Secretary of the Treasury, shall carry 

15 out a program under which the Secretary, upon ap16 plication by a qualified borrower who has an eligible 

17 private education loan, shall issue such borrower a 

18 loan under this part in accordance with the fol19 lowing: 

20 ‘‘(A) The loan issued under this program 

21 shall be in an amount equal to the sum of the 

22 unpaid principal, accrued unpaid interest, and 

23 late charges of the private education loan. 

24 ‘‘(B) The Secretary shall pay the proceeds 

25 of the loan issued under this program to the 


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1 private educational lender of the private edu2 cation loan, in order to discharge the qualified 

3 borrower from any remaining obligation to the 

4 lender with respect to the original loan. 

5 ‘‘(C) The Secretary shall require that the 

6 qualified borrower undergo loan counseling that 

7 provides all of the information and counseling 

8 required under clauses (i) through (viii) of sec9 tion 485(b)(1)(A) before the loan is refinanced 

10 in accordance with this section, and before the 

11 proceeds of such loan are paid to the private 

12 educational lender. 

13 ‘‘(D) The Secretary shall issue the loan as 

14 a Federal Direct Refinanced Private Loan, 

15 which shall have the same terms, conditions, 

16 and benefits as a Federal Direct Unsubsidized 

17 Stafford Loan, except as otherwise provided in 

18 this section. 

19 ‘‘(2) PRIVATE EDUCATIONAL LENDERS.—Not 

20 later than 180 days after the date of enactment of 

21 the Bank on Students Coronavirus Emergency Loan 

22 Refinancing Act of 2020, the Secretary, in consulta23 tion with the Secretary of the Treasury and the Di24 rector of the Bureau of Consumer Financial ProtecVerDate Sep 11 2014 17:26 Jul 14, 2020 Jkt 099200 PO 00000 Frm 00016 Fmt 6652 Sfmt 6201 E:\BILLS\S4141.IS S4141

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1 tion, shall establish eligibility requirements to pre2 clude windfall profits for private educational lenders. 

3 ‘‘(c) INTEREST RATE.— 

4 ‘‘(1) IN GENERAL.—The interest rate for a 

5 Federal Direct Refinanced Private Loan is— 

6 ‘‘(A) in the case of a Federal Direct Refi7 nanced Private Loan for a private education 

8 loan originally issued for undergraduate post9 secondary educational expenses, a rate equal to 

10 the rate for Federal Direct Stafford Loans and 

11 Federal Direct Unsubsidized Stafford Loans 

12 issued to undergraduate students for the 12- 

13 month period beginning on July 1, 2020, and 

14 ending on June 30, 2021; and 

15 ‘‘(B) in the case of a Federal Direct Refi16 nanced Private Loan for a private education 

17 loan originally issued for graduate or profes18 sional degree postsecondary educational ex19 penses, a rate equal to the rate for Federal Di20 rect Unsubsidized Stafford Loans issued to 

21 graduate or professional students for the 12- 

22 month period beginning on July 1, 2020, and 

23 ending on June 30, 2021. 

24 ‘‘(2) COMBINED UNDERGRADUATE AND GRAD25 UATE STUDY LOANS.—If a Federal Direct RefiVerDate Sep 11 2014 17:26 Jul 14, 2020 Jkt 099200 PO 00000 Frm 00017 Fmt 6652 Sfmt 6201 E:\BILLS\S4141.IS S4141

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1 nanced Private Loan is for a private education loan 

2 originally issued for both undergraduate and grad3 uate or professional postsecondary educational ex4 penses, the interest rate shall be a rate equal to the 

5 rate for Federal Direct PLUS Loans for the 12- 

6 month period beginning on July 1, 2020, and ending 

7 on June 30, 2021. 

8 ‘‘(3) FIXED RATE.—The applicable rate of in9 terest determined under this subsection for a Fed10 eral Direct Refinanced Private Loan shall be fixed 

11 for the period of the loan. 

12 ‘‘(d) NO INCLUSION IN AGGREGATE LIMITS.—The 

13 amount of a Federal Direct Refinanced Private Loan, or 

14 a Federal Direct Consolidated Loan to the extent such 

15 loan was used to repay a Federal Direct Refinanced Pri16 vate Loan, shall not be included in calculating a bor17 rower’s annual or aggregate loan limits under section 428 

18 or 428H. 

19 ‘‘(e) SPECIAL RULE FOR ELIGIBILITY FOR SERVICE20 RELATED REPAYMENT.— 

21 ‘‘(1) IN GENERAL.—Notwithstanding sections 

22 428K(a)(2), 428L(b)(2), 455(m)(3)(A), and 460(b), 

23 a Federal Direct Refinanced Private Loan shall be 

24 eligible for any loan repayment or loan forgiveness 

25 program under section 428K, 428L, or 460, or for 


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1 the repayment plan for public service employees 

2 under section 455(m), but only with respect to any 

3 balance due, payments made, or service completed, 

4 after the date on which such Federal Direct Refi5 nanced Private Loan was issued. 

6 ‘‘(f) PRIVATE EDUCATIONAL LENDER REPORTING

7 REQUIREMENT.— 

8 ‘‘(1) REPORTING REQUIRED.—Not later than 

9 180 days after the date of enactment of the Bank 

10 on Students Coronavirus Emergency Loan Refi11 nancing Act of 2020, the Secretary, in consultation 

12 with the Secretary of the Treasury and the Director 

13 of the Bureau of Consumer Financial Protection, 

14 shall establish a requirement that private edu15 cational lenders report the data described in para16 graph (2) to the Secretary, to Congress, to the Sec17 retary of the Treasury, and to the Director of the 

18 Bureau of Consumer Financial Protection, in order 

19 to allow for an assessment of the private education 

20 loan market. 

21 ‘‘(2) CONTENTS OF REPORTING.—The data 

22 that private educational lenders shall report in ac23 cordance with paragraph (1) shall include each of 

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1 fined in section 140(a) of the Truth in Lending Act 

2 (15 U.S.C. 1650(a))): 

3 ‘‘(A) The total amount of private education 

4 loan debt the lender holds. 

5 ‘‘(B) The total number of private edu6 cation loan borrowers the lender serves. 

7 ‘‘(C) The average interest rate on the out8 standing private education loan debt held by the 

9 lender. 

10 ‘‘(D) The proportion of private education 

11 loan borrowers who are in default on a loan 

12 held by the lender. 

13 ‘‘(E) The proportion of the outstanding 

14 private education loan volume held by the lend15 er that is in default. 

16 ‘‘(F) The proportions of outstanding pri17 vate education loan borrowers who are 30, 60, 

18 and 90 days delinquent. 

19 ‘‘(G) The proportions of outstanding pri20 vate education loan volume that is 30, 60, and 

21 90 days delinquent. 

22 ‘‘(g) NOTIFICATION TO BORROWERS.—The Sec23 retary, in coordination with the Secretary of the Treasury 

24 and the Director of the Bureau of Consumer Financial 

25 Protection, shall undertake a campaign to alert borrowers 


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1 about the availability of private student loan refinancing 

2 under this section.’’. 

3 (c) INCOME-BASED REPAYMENT.—Section 493C of 

4 the Higher Education Act of 1965 (20 U.S.C. 1098e) is 

5 amended by adding at the end the following: 

6 ‘‘(f) SPECIAL RULE FOR REFINANCED LOANS.— 

7 ‘‘(1) REFINANCED FEDERAL DIRECT, FFEL, 

8 AND PLUS LOANS.—In calculating the period of time 

9 during which a borrower of a loan (with the excep10 tion of a Federal Consolidation Loan) that is refi11 nanced under section 460A has made monthly pay12 ments for purposes of subsection (b)(7), the Sec13 retary shall deem the period to include all monthly 

14 payments made for the original loan, and all month15 ly payments made for the refinanced loan, that oth16 erwise meet the requirements of this section. 

17 ‘‘(2) REFINANCED FEDERAL DIRECT CONSOLI18 DATION LOANS.—In calculating the period of time 

19 during which a borrower of a Federal Consolidation 

20 Loan that is refinanced under section 460A has 

21 made monthly payments for the purposes of sub22 section (b)(7), the Secretary shall— 

23 ‘‘(A) review the borrower’s payment his24 tory to identify each component loan of such 

25 Federal Direct Consolidation Loan; 


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1 ‘‘(B) for each such component loan— 

2 ‘‘(i) calculate the weighted factor of 

3 the component loan, which shall be the fac4 tor that represents the portion of such 

5 Federal Direct Consolidation Loan that is 

6 attributable to such component loan; and 

7 ‘‘(ii) determine the number of quali8 fying monthly payments made on such 

9 component loan before consolidation; 

10 ‘‘(C) calculate the number of qualifying 

11 monthly payments determined under subpara12 graph (B)(ii) with respect to a component loan 

13 that shall be deemed as qualifying monthly pay14 ments made on the Federal Direct Consolida15 tion Loan by multiplying— 

16 ‘‘(i) the weighted factor of such com17 ponent loan as determined under subpara18 graph (B)(i); by 

19 ‘‘(ii) the number of qualifying monthly 

20 payments made on such component loan as 

21 determined under subparagraph (B)(ii); 

22 and 

23 ‘‘(D) calculate and inform the borrower of 

24 the total number of qualifying monthly pay25 ments with respect to the component loans of 


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1 the Federal Direct Consolidation Loan that 

2 shall be deemed as qualifying monthly payments 

3 made on the refinanced Federal Consolidation 

4 Loan, by— 

5 ‘‘(i) adding together the result of each 

6 calculation made under subparagraph (C) 

7 with respect to each such component loan; 

8 and 

9 ‘‘(ii) rounding the number determined 

10 under clause (i) to the nearest whole num11 ber. 

12 ‘‘(3) FEDERAL DIRECT REFINANCED PRIVATE

13 LOANS.—In calculating the period of time during 

14 which a borrower of a Federal Direct Refinanced 

15 Private Loan under section 460B has made monthly 

16 payments for purposes of subsection (b)(7), the Sec17 retary shall include only payments— 

18 ‘‘(A) that are made after the date of the 

19 issuance of the Federal Direct Refinanced Pri20 vate Loan; and 

21 ‘‘(B) that otherwise meet the requirements 

22 of this section.’’. 

23 (d) CONFORMING AMENDMENTS.—The Higher Edu24 cation Act of 1965 (20 U.S.C. 1001 et seq.) is amended— 


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1 (1) in section 428J(c)(2) (20 U.S.C. 1078– 

2 10(c)(2)), by inserting ‘‘a Federal Direct Refinanced 

3 Private Loan,’’ after ‘‘a Federal Direct Unsubsidized 

4 Stafford Loan,’’; 

5 (2) in section 455 (20 U.S.C. 1087e)— 

6 (A) in subsection (f)(1)(B), by inserting ‘‘a 

7 Federal Direct Refinanced Private Loan,’’ after 

8 ‘‘a Federal Direct Unsubsidized Stafford 

9 Loan,’’; and 

10 (B) in subsection (m)(3)(A), by striking 

11 ‘‘or Federal Direct Unsubsidized Stafford 

12 Loan,’’ and inserting ‘‘Federal Direct Unsub13 sidized Stafford Loan, or Federal Direct Refi14 nanced Private Loan,’’; and 

15 (3) in section 460 (20 U.S.C. 1087j)— 

16 (A) in subsection (b), by striking ‘‘and 

17 Federal Direct Unsubsidized Stafford Loans’’ 

18 and inserting ‘‘Federal Direct Unsubsidized 

19 Stafford Loans, and Federal Direct Refinanced 

20 Private Loans’’; and 

21 (B) in subsection (c)— 

22 (i) in paragraph (1), by striking ‘‘or a 

23 Federal Direct Unsubsidized Stafford 

24 Loan’’ and inserting ‘‘, a Federal Direct 


pamtmann on DSKBC07HB2PROD with BILLS
25 

•S 4141 IS

1 Unsubsidized Stafford Loan, or a Federal 

2 Direct Refinanced Private Loan’’; and 

3 (ii) in paragraph (2), by inserting ‘‘a 

4 Federal Direct Refinanced Private Loan,’’ 

5 after ‘‘a Federal Direct Unsubsidized Staf6 ford Loan,’’. 

7 (e) EFFECTIVE DATE.—The amendments made by 

8 this section shall take effect on July 1, 2020. 

Æ 


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