I 

117TH CONGRESS 

1ST SESSION H. R. 2460 

To amend the Higher Education Act of 1965 to authorize borrowers to 

separate joint consolidation loans. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 13, 2021 

Mr. PRICE of North Carolina (for himself, Mr. MURPHY of North Carolina, 

and Ms. STEVENS) introduced the following bill; which was referred to 

the Committee on Education and Labor 

A BILL 

To amend the Higher Education Act of 1965 to authorize 

borrowers to separate joint consolidation 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 ‘‘Joint Consolidation 

5 Loan Separation Act’’. 

6 SEC. 2. SEPARATING JOINT CONSOLIDATION LOANS. 

7 (a) IN GENERAL.—Section 455(g) of the Higher 

8 Education Act of 1965 (20 U.S.C. 1087e(g)) is amend9 ed— 


pbinns on DSKJLVW7X2PROD with BILLS
2 

•HR 2460 IH

1 (1) by striking ‘‘A borrower’’ and inserting the 

2 following: 

3 ‘‘(1) IN GENERAL.—A borrower’’; 

4 (2) in the first sentence, insert ‘‘(other than a 

5 Federal Direct Consolidation Loan separated from a 

6 joint consolidation loan under paragraph (2) of this 

7 subsection)’’ after ‘‘under this part’’; and 

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

9 ‘‘(2) SEPARATING JOINT CONSOLIDATION

10 LOANS.— 

11 ‘‘(A) IN GENERAL.—A married couple, or 

12 2 individuals who were previously a married 

13 couple, and who received a joint consolidation 

14 loan as such married couple under subpara15 graph (C) of section 428C(a)(3) (as such sub16 paragraph was in effect on June 30, 2006), 

17 may apply to the Secretary, in accordance with 

18 subparagraph (C) of this paragraph, for each 

19 individual borrower in the married couple (or 

20 previously married couple) to receive a separate 

21 Federal Direct Consolidation Loan under this 

22 part. 

23 ‘‘(B) SECRETARIAL REQUIREMENTS.—Not24 withstanding section 428C(a)(3)(A) or any 

25 other provision of law, for each individual borVerDate Sep 11 2014 03:51 Jun 05, 2021 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H2460.IH H2460

pbinns on DSKJLVW7X2PROD with BILLS
3 

•HR 2460 IH

1 rower who applies under subparagraph (A), the 

2 Secretary shall— 

3 ‘‘(i) award a separate Federal Direct 

4 Consolidation Loan under this part that— 

5 ‘‘(I) shall be for an amount equal 

6 to the product of— 

7 ‘‘(aa) the unpaid principal 

8 and accrued unpaid interest of 

9 the joint consolidation loan (as of 

10 the date that is the day before 

11 such separate consolidation loan 

12 is made); and 

13 ‘‘(bb) the percentage of the 

14 joint consolidation loan attrib15 utable to the loans of the indi16 vidual borrower for whom such 

17 separate consolidation loan is 

18 being made, as determined on the 

19 basis of the loan obligations of 

20 such borrower with respect to 

21 such joint consolidation loan (as 

22 of the date such joint consolida23 tion loan was made); and 

24 ‘‘(II) has the same rate of inter25 est as the joint consolidation loan (as 


pbinns on DSKJLVW7X2PROD with BILLS
4 

•HR 2460 IH

1 of the date that is the day before such 

2 separate consolidation loan is made); 

3 and 

4 ‘‘(ii) in order to discharge such indi5 vidual borrower from any remaining obli6 gation with respect to the percentage of 

7 the joint consolidation loan described in 

8 clause (i)(I)(bb)— 

9 ‘‘(I) cancel the outstanding bal10 ance of interest and principal due on 

11 such percentage, in the case of such a 

12 loan held by the Secretary; and 

13 ‘‘(II) through the holder of the 

14 loan, assume the obligation to repay 

15 the outstanding balance of interest 

16 and principal due on such percentage, 

17 in the case of such a loan made, in18 sured, or guaranteed under part B; 

19 ‘‘(iii) ensure that such individual bor20 rower shall not be held liable for the repay21 ment of the percentage of the joint consoli22 dation loan that is not described in clause 

23 (i)(I)(bb); 

24 ‘‘(iv) in a case in which a payment 

25 was made under section 455(m)(1)(A) on 


pbinns on DSKJLVW7X2PROD with BILLS
5 

•HR 2460 IH

1 the joint consolidation loan during a period 

2 in which the individual borrower for whom 

3 such separate consolidation loan is being 

4 made was employed in a public service job 

5 described in section 455(m)(1)(B), treat 

6 such payment as if such payment were 

7 made on the separate consolidation loan; 

8 and 

9 ‘‘(v) in a case in which a payment was 

10 made under an income contingent repay11 ment plan or an income-based repayment 

12 plan described in subparagraph (D) or (E) 

13 of section 455(d)(1), respectively, on the 

14 joint consolidation loan, treat such pay15 ment as if such payment were made on 

16 such separate consolidation loan. 

17 ‘‘(C) APPLICATION FOR SEPARATE DIRECT

18 CONSOLIDATION LOAN.— 

19 ‘‘(i) JOINT APPLICATION.—Except as 

20 provided in clause (ii), to receive separate 

21 consolidation loans under this part, both 

22 individual borrowers in a married couple 

23 (or previously married couple) shall jointly 

24 apply under subparagraph (A). 


pbinns on DSKJLVW7X2PROD with BILLS
6 

•HR 2460 IH

1 ‘‘(ii) SEPARATE APPLICATION.—An 

2 individual borrower in a married couple (or 

3 previously married couple) may apply for a 

4 separate consolidation loan under subpara5 graph (A) separately and without regard to 

6 whether or when the other individual bor7 rower in the married couple (or previously 

8 married couple) applies under subpara9 graph (A), in a case in which— 

10 ‘‘(I) the individual borrower has 

11 experienced from the other individual 

12 borrower— 

13 ‘‘(aa) domestic violence (as 

14 defined in section 40002(a) of 

15 the Violence Against Women Act 

16 of 1994 (42 U.S.C. 13925(a))); 

17 or 

18 ‘‘(bb) economic abuse (in19 cluding behaviors that control 

20 such borrower’s ability to ac21 quire, use, and maintain access 

22 to money, credit, or the joint fi23 nancial obligations of both bor24 rowers); 


pbinns on DSKJLVW7X2PROD with BILLS
7 

•HR 2460 IH

1 ‘‘(II) the individual borrower cer2 tifies, on a form approved by the Sec3 retary, that such borrower is unable 

4 to reasonably reach or access the loan 

5 information of the other individual 

6 borrower; or 

7 ‘‘(III) the Secretary determines 

8 that authorizing each individual bor9 rower to apply separately under sub10 paragraph (A) would be in the best 

11 fiscal interests of the Federal Govern12 ment.’’. 

13 (b) CONFORMING AMENDMENT.—Section 

14 428C(a)(3)(B)(i)(V) of the Higher Education Act of 1965 

15 (20 U.S.C. 1078–3(3)(B)(i)(V)) is amended— 

16 (1) by striking ‘‘or’’ at the end of item (bb); 

17 (2) by striking the period at the end of item 

18 (cc) and inserting ‘‘; or’’; and 

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

20 ‘‘(dd) for the purpose of sep21 arating a joint consolidation loan 

22 into 2 separate Federal Direct 

23 Consolidation Loans under sec24 tion 455(g)(2), except that such 

25 separated Federal Direct ConsoliVerDate Sep 11 2014 03:51 Jun 05, 2021 Jkt 019200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H2460.IH H2460

pbinns on DSKJLVW7X2PROD with BILLS
8 

•HR 2460 IH

1 dation Loan may not consolidate 

2 such loan with the loans de3 scribed in section 428C(a)(4).’’. 

Æ 


pbinns on DSKJLVW7X2PROD with BILLS