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[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5622 Introduced in House (IH)]

<DOC>

114th CONGRESS
  2d Session
                                H. R. 5622

 To amend the Higher Education Act of 1965 to give borrowers an option 
  to extend the grace period prior to the beginning of the repayment 
                    period, and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                              July 5, 2016

 Mr. Aguilar introduced the following bill; which was referred to the 
                Committee on Education and the Workforce

_______________________________________________________________________

                                 A BILL

 
 To amend the Higher Education Act of 1965 to give borrowers an option 
  to extend the grace period prior to the beginning of the repayment 
                    period, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Grace Period Alleviation Act'' or 
the ``GPA Act''.

SEC. 2. GRACE PERIOD ADJUSTMENTS.

    Section 455 of the Higher Education Act of 1965 (20 U.S.C. 1087e) 
is amended--
            (1) in subsection (b), by adding at the end the following:
            ``(11) Repayment of interest.--The Secretary, through a 
        loan modification process, shall pay to each borrower who 
        received a Federal Direct Stafford Loan for which the first 
        disbursement was made during the period between July 1, 2012, 
        and July 1, 2014, an amount equal to the amount of interest 
        that accrued on such loan prior to the beginning of the 
        repayment period.''; and
            (2) by adding at the end the following:
    ``(r) Election of Extended Grace Period.--
            ``(1) In general.--The Secretary shall provide an 
        opportunity for each borrower who receives a Federal Direct 
        Stafford Loan or Federal Direct Unsubsidized Stafford Loan to 
        elect a 12-month grace period before beginning repayment on the 
        loan. The Secretary shall--
                    ``(A) notify each such borrower of the opportunity 
                for such an election not later than 45 days before the 
                start of the borrower's repayment period on the loan;
                    ``(B) advise each such borrower of the financial 
                consequences of electing such 12-month grace period; 
                and
                    ``(C) not require such a borrower to accept a 12-
                month grace period, unless the borrower specifically 
                elects such 12-month grace period not later than 14 
                days before the start of the borrower's repayment 
                period on the loan.
            ``(2) Application of section 428(b)(7).--With respect to 
        each borrower who makes an election for a 12-month grace period 
        under paragraph (1) of this subsection, section 487(b)(7) shall 
        be applied--
                    ``(A) in subparagraph (A), as if `or, in the case 
                of a student who makes an election under section 
                455(r)(1), 12 months' were inserted after `6 months'; 
                and
                    ``(B) in subparagraph (D), as if `or, in the case 
                of a student who makes an election under section 
                455(r)(1), the 12-month period' were inserted after `6-
                month period'.''.
                                 <all>
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