I 

116TH CONGRESS 

2D SESSION H. R. 7294 

To suspend Federal Perkins Loans repayments during the COVID–19 

pandemic, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JUNE 22, 2020 

Ms. PORTER (for herself, Ms. STEFANIK, Mrs. TRAHAN, Ms. ADAMS, and Mrs. 

LEE of Nevada) introduced the following bill; which was referred to the 

Committee on Education and Labor, and in addition to the Committees 

on the Judiciary, and Ways and Means, 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 suspend Federal Perkins Loans repayments during the 

COVID–19 pandemic, 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 ‘‘COVID–19 Perkins 

5 Loan Relief Act’’. 

6 SEC. 2. LOWERING RATES FOR BORROWERS WITH FED7 ERAL PERKINS LOANS. 

8 (a) SUSPENSION OF INTEREST.— 


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1 (1) SUSPENSION OF INTEREST.—The Secretary 

2 of Education shall require holders of Federal Per3 kins Loans to suspend the accrual of interest on 

4 such loans during the COVID–19 pandemic. 

5 (2) REQUIREMENTS.—Under the program and 

6 effective as of March 13, 2020, all holders of Fed7 eral Perkins Loans shall— 

8 (A) provide that no interest shall accrue on 

9 Federal Perkins Loans until September 30, 

10 2020; and 

11 (B) provide a report to the Secretary of 

12 Education not later than 30 days after the date 

13 of the enactment of this Act confirming that no 

14 interest has accrued on such loans as of March 

15 13, 2020. 

16 (3) REPAYMENT OF INTEREST.—The Secretary 

17 of Education shall make payments to the holders of 

18 Federal Perkins Loans on behalf of each borrower of 

19 such a Federal Perkins Loan in an amount equal to 

20 the total amount of the interest suspended under 

21 paragraph (1) with respect to such Federal Perkins 

22 Loan. 

23 (b) SUSPENSION OF PAYMENTS.— 

24 (1) IN GENERAL.—Notwithstanding any other 

25 provision of the Higher Education Act of 1965 (20 


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1 U.S.C. 1071 et seq.), the Secretary of Education 

2 shall require institutions of higher education to sus3 pend all payments due from borrowers through Sep4 tember 30, 2020. 

5 (2) CONSIDERATION OF PAYMENTS.—Notwith6 standing any other provision of the Higher Edu7 cation Act of 1965 (20 U.S.C. 1001 et seq.), the 

8 Secretary of Education shall deem each month for 

9 which a loan payment was suspended under this 

10 subsection as if the borrower of the loan had made 

11 a qualified payment for the purpose of any loan for12 giveness program and loan rehabilitation program 

13 authorized under the Higher Education Act of 1965 

14 (20 U.S.C. 1071 et seq.). 

15 (3) REPORTING TO CONSUMER REPORTING

16 AGENCIES.—During the period in which the bor17 rower payments on a loan are suspended under this 

18 subsection, the Secretary of Education shall ensure 

19 that, for the purpose of reporting information about 

20 the loan to a consumer reporting agency, any pay21 ment that has been suspended is treated as if it 

22 were a regularly scheduled payment made by a bor23 rower. 

24 (c) SUSPENSION OF INVOLUNTARY COLLECTION.— 


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1 (1) COLLECTION BY INSTITUTIONS.—Notwith2 standing any other provision of the Higher Edu3 cation Act of 1965 (20 U.S.C. 1071 et seq.), the 

4 Secretary of Education shall require that institutions 

5 of higher education to suspend all involuntary collec6 tion related to Federal Perkins Loans, through Sep7 tember 30, 2020, including collecting a past due 

8 Federal Perkins Loan, assign any Federal Perkins 

9 Loan to a collection agency, or litigating with re10 spect to such loan. 

11 (2) COLLECTION BY SECRETARY.—During the 

12 period beginning on the date of the enactment of 

13 this section and ending on September 30, 2020, the 

14 following provisions may not apply with respect to a 

15 Federal Perkins Loan: 

16 (A) A wage garnishment authorized under 

17 section 488A of the Higher Education Act of 

18 1965 (20 U.S.C. 1095a) or section 3720D of 

19 title 31, United States Code. 

20 (B) A reduction of tax refund by amount 

21 of debt authorized under section 3720A of title 

22 31, United States Code, or section 6402(d) of 

23 the Internal Revenue Code of 1986. 

24 (C) A reduction of any other Federal ben25 efit payment by administrative offset authorized 


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1 under section 3716 of title 31, United States 

2 Code (including a benefit payment due to an in3 dividual under the Social Security Act or any 

4 other provision described in subsection 

5 (c)(3)(A)(i) of such section). 

6 (D) Any other involuntary collection activ7 ity by the Secretary of Education. 

8 (d) NOTICE TO BORROWERS AND TRANSITION PE9 RIOD.—To inform borrowers of the actions taken in ac10 cordance with this section and ensure an effective transi11 tion, the Secretary of Education shall require institutions 

12 of higher education to— 

13 (1) not later than 15 days after the date of the 

14 enactment of this Act, notify borrowers— 

15 (A) of the actions taken in accordance with 

16 this section for whom payments have been sus17 pended and no interest shall accrue; 

18 (B) of the actions taken in accordance with 

19 subsection (c) for whom collections have been 

20 suspended; 

21 (C) of the option to continue making pay22 ments toward principal; and 

23 (D) that the program under this section 

24 shall only be provided during the COVID–19 

25 pandemic; and 


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1 (2) beginning on August 1, 2020, carry out a 

2 program to provide not less than 6 notices by postal 

3 mail, telephone, or electronic communication to bor4 rowers indicating when the borrower’s normal pay5 ment obligations will resume. 

6 (e) WAIVERS.—In carrying out this section, the Sec7 retary of Education may waive the application of— 

8 (1) subchapter I of chapter 35 of title 44, 

9 United States Code (commonly known as the ‘‘Pa10 perwork Reduction Act’’); 

11 (2) the master calendar requirements under 

12 section 482 of the Higher Education Act of 1965 

13 (20 U.S.C. 1089); 

14 (3) negotiated rulemaking under section 492 of 

15 the Higher Education Act of 1965 (20 U.S.C. 

16 1098a); and 

17 (4) the requirement to publish the notices re18 lated to the system of records of the agency before 

19 implementation required under paragraphs (4) and 

20 (11) of section 552a(e) of title 5, United States 

21 Code (commonly known as the ‘‘Privacy Act of 

22 1974’’), except that the notices shall be published 

23 not later than 180 days after the date of enactment 

24 of this Act. 


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1 (f) EFFECTIVE DATE.—This section shall take effect 

2 as if included in the enactment of the CARES Act (Public 

3 Law 116–136). 

Æ 


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