I 

115TH CONGRESS 

1ST SESSION H. R. 4584 

To provide loan forgiveness to borrowers of Federal student loans who agree 

to delay eligibility to collect Social Security benefits, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

DECEMBER 7, 2017 

Mr. GARRETT (for himself, Mr. MESSER, Mr. ROKITA, Mr. FERGUSON, and 

Mr. BRAT) introduced the following bill; which was referred to the Committee on Ways and Means, and in addition to the Committee on Education and the Workforce, 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 provide loan forgiveness to borrowers of Federal student 

loans who agree to delay eligibility to collect Social Security benefits, 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 ‘‘Student Security Act 

5 of 2017’’. 


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1 SEC. 2. STUDENT SECURITY LOAN FORGIVENESS PRO2 GRAM. 

3 Section 455 of the Higher Education Act of 1965 (20 

4 U.S.C. 1087e) is amended by adding at the end the fol5 lowing: 

6 ‘‘(r) STUDENT SECURITY LOAN FORGIVENESS PRO7 GRAM.— 

8 ‘‘(1) PROGRAM AUTHORIZED.—Beginning not 

9 later than 180 days after the date of the enactment 

10 of the Student Security Act of 2017, the Secretary 

11 of Education, jointly with the Commissioner of So12 cial Security, shall carry out a program under which 

13 the Secretary shall issue student loan forgiveness 

14 credits to qualified borrowers of eligible Federal Di15 rect loans in exchange for delayed eligibility for old16 age insurance benefits under title II of the Social 

17 Security Act (as amended by the Student Security 

18 Act of 2017) in accordance with this subsection. 

19 ‘‘(2) AGREEMENT REQUIRED.—To be eligible to 

20 participate in the program, a qualified borrower 

21 shall enter into a written agreement with the Sec22 retary of Education and the Commissioner of Social 

23 Security under which the borrower— 

24 ‘‘(A) elects to receive a specified number of 

25 student loan forgiveness credits not greater 

26 than 73; and 


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1 ‘‘(B) acknowledges the extent of the bor2 rower’s delayed eligibility for old-age insurance 

3 benefits under title II of the Social Security Act 

4 (as amended by the Student Security Act of 

5 2017) as a result of receiving such credits. 

6 ‘‘(3) TERMINATION.—No borrower may enter 

7 into an agreement under paragraph (2) unless such 

8 borrower was a qualified borrower on or before the 

9 date that is 15 years after the date of the enactment 

10 of the Student Security Act of 2017. 

11 ‘‘(4) COMBINATION WITH OTHER FORGIVENESS

12 PROGRAMS.—Unless otherwise provided by law, a 

13 qualified borrower may combine forgiveness under 

14 this subsection with other forgiveness programs 

15 under this Act, except in no case shall the total 

16 amount of forgiveness received by a borrower under 

17 all such programs exceed the amount of Federal stu18 dent loans owed by such borrower. 

19 ‘‘(5) DEFINITIONS.—In this section: 

20 ‘‘(A) DEFAULT.—The term ‘default’ has 

21 the meaning given the term in section 435(l). 

22 ‘‘(B) ELIGIBLE FEDERAL DIRECT LOAN.— 

23 The term ‘eligible Federal Direct loan’ means 

24 any loan made under this part, including any 

25 such loan on which the borrower has defaulted. 


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1 ‘‘(C) INITIAL QUALIFYING DATE.—The 

2 term ‘initial qualifying date’ means the date 

3 that is 24 months after the date of the enact4 ment of the Student Security Act of 2017. 

5 ‘‘(D) QUALIFIED BORROWER.—The term 

6 ‘qualified borrower’— 

7 ‘‘(i) with respect to a borrower who 

8 seeks to enter into an agreement under 

9 paragraph (2) on or before the initial 

10 qualifying date, means a borrower of an el11 igible Federal Direct loan who is not enti12 tled to collect old-age insurance benefits 

13 under title II of the Social Security Act as 

14 of the date of the agreement under para15 graph (2), including a borrower who is a 

16 defaulted borrower; and 

17 ‘‘(ii) with respect to a borrower who 

18 seeks to enter into an agreement under 

19 paragraph (2) after the initial qualifying 

20 date, means— 

21 ‘‘(I) a borrower of an eligible 

22 Federal Direct loan who is not enti23 tled to collect old-age insurance bene24 fits under title II of the Social Secu25 rity Act as of the date of the agreeVerDate Sep 11 2014 03:30 Dec 13, 2017 Jkt 079200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H4584.IH H4584

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1 ment under paragraph (2), including 

2 a borrower who is a defaulted bor3 rower; and 

4 ‘‘(II) who was eligible for a 

5 deferment under subsection (f)(2)(A) 

6 at any time during the five-year pe7 riod preceding the date of the agree8 ment under paragraph (2). 

9 ‘‘(E) STUDENT LOAN FORGIVENESS CRED10 IT.—The term ‘student loan forgiveness credit’ 

11 means the cancellation of the obligation of a 

12 qualified borrower to repay $550 in eligible 

13 Federal Direct loans in exchange for delayed 

14 eligibility for old-age insurance benefits as spec15 ified in title II of the Social Security Act (as 

16 amended by the Student Security Act of 

17 2017).’’. 

18 SEC. 3. DELAYED ELIGIBILITY FOR OLD-AGE INSURANCE 

19 BENEFITS. 

20 (a) RETIREMENT AGE; EARLY RETIREMENT AGE.— 

21 Section 216(l) of the Social Security Act (42 U.S.C. 

22 416(l)) is amended by adding at the end the following: 

23 ‘‘(4) Notwithstanding the preceding paragraphs of 

24 this subsection, in the case of an individual who receives 


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1 one or more student loan forgiveness credits under section 

2 455(r) of the Higher Education Act of 1965— 

3 ‘‘(A) the retirement age with respect to such in4 dividual shall be deemed to be— 

5 ‘‘(i) the retirement age determined with re6 spect to such individual under paragraph (1); 

7 plus 

8 ‘‘(ii) a number of additional months equal 

9 to the number of student loan forgiveness cred10 its received by the individual under such section 

11 455(r); and 

12 ‘‘(B) the early retirement age with respect to 

13 such individual shall be deemed to be— 

14 ‘‘(i) the early retirement age determined 

15 with respect to such individual under paragraph 

16 (2); plus 

17 ‘‘(ii) a number of additional months equal 

18 to the number of student loan forgiveness cred19 its received by the individual under such section 

20 455(r).’’. 

21 (b) DELAYED RETIREMENT CREDITS.—Section 

22 202(w) of the Social Security Act (42 U.S.C. 402(w)) is 

23 amended by inserting after ‘‘age 70’’ each place it appears 

24 the following: ‘‘(or, in the case of an individual described 

25 in paragraph (4) of section 216(l), age 70 plus the number 


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1 of additional months determined under subparagraph 

2 (A)(ii) of such paragraph)’’. 

3 (c) VOLUNTARY SUSPENSION OF BENEFITS.—Sec4 tion 202(z) of the Social Security Act (42 U.S.C. 402(z)) 

5 is amended by inserting after ‘‘the age of 70’’ the fol6 lowing: ‘‘(or, in the case of an individual described in para7 graph (4) of section 216(l), the age of 70 plus the number 

8 of additional months determined under subparagraph 

9 (A)(ii) of such paragraph)’’. 

10 SEC. 4. INTERFUND BORROWING. 

11 Section 201(l) of the Social Security Act (42 U.S.C. 

12 401(l)) is amended to read as follows: 

13 ‘‘(l)(1) If at any time the Managing Trustee deter14 mines that borrowing authorized under this subsection is 

15 necessary to pay full benefit payments from the Federal 

16 Disability Insurance Trust Fund, the Managing Trustee 

17 may borrow such necessary amounts from the Federal 

18 Old-Age and Survivors Insurance Trust Fund for transfer 

19 to and deposit in the Federal Disability Insurance Trust 

20 Fund. 

21 ‘‘(2) In any case where a loan has been made to the 

22 Federal Disability Insurance Trust Fund under paragraph 

23 (1), there shall be transferred on the last day of each 

24 month after such loan is made, from the borrowing Trust 

25 Fund to the lending Trust Fund, the total interest accrued 


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1 to such day with respect to the unrepaid balance of such 

2 loan at a rate equal to the rate which the lending Trust 

3 Fund would earn on the amount involved if the loan were 

4 an investment under subsection (d) (even if such an in5 vestment would earn interest at a rate different than the 

6 rate earned by investments redeemed by the lending Trust 

7 Fund in order to make the loan). 

8 ‘‘(3)(A) If in any month after a loan has been made 

9 to the Federal Disability Insurance Trust Fund under 

10 paragraph (1), the Managing Trustee determines that the 

11 assets of such Trust Fund are sufficient to permit repay12 ment of all or part of any loans made to such Fund under 

13 paragraph (1), he shall make such repayments as he deter14 mines to be appropriate. 

15 ‘‘(B) The full amount of all loans made under 

16 paragraph (1) shall be repaid at the earliest feasible 

17 date. 

18 ‘‘(4) The Board of Trustees shall make a timely re19 port to the Congress of any amounts transferred (includ20 ing interest payments) under this subsection.’’. 


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1 SEC. 5. EXCLUSION FROM GROSS INCOME FOR DISCHARGE 

2 OF STUDENT LOAN INDEBTEDNESS UNDER 

3 THE STUDENT SECURITY LOAN FORGIVE4 NESS PROGRAM. 

5 (a) IN GENERAL.—Paragraph (1) of section 108(f) 

6 of the Internal Revenue Code of 1986 is amended to read 

7 as follows: 

8 ‘‘(1) IN GENERAL.—In the case of an indi9 vidual, gross income does not include any amount 

10 which (but for this subsection) would be includible in 

11 gross income by reason of the discharge (in whole or 

12 in part) of any student loan if such discharge was 

13 pursuant to— 

14 ‘‘(A) a provision of such loan under which 

15 all or part of the indebtedness of the individual 

16 would be discharged if the individual worked for 

17 a certain period of time in certain professions 

18 for any of a broad class of employers, or 

19 ‘‘(B) the receipt of student loan forgive20 ness credits under section 455(r) of the Higher 

21 Education Act of 1965.’’. 

22 (b) EFFECTIVE DATE.—The amendments made by 

23 this section shall apply to discharges of indebtedness on 

24 or after the date of the enactment of this Act. 

Æ 


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