I 

116TH CONGRESS 

1ST SESSION H. R. 4590 

To amend the Higher Education Act of 1965 to terminate capitalization 

of interest after forbearance and certain deferment periods. 

IN THE HOUSE OF REPRESENTATIVES 

OCTOBER 1, 2019 

Mr. DANNY K. DAVIS of Illinois (for himself, Mr. CASTEN of Illinois, and Ms. 

SPANBERGER) 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 terminate 

capitalization of interest after forbearance and certain 

deferment periods. 

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 ‘‘End Capitalization for 

5 Struggling Borrowers Act’’. 

6 SEC. 2. TERMINATION OF CAPITALIZATION OF INTEREST 

7 AFTER DEFERMENT OR FORBEARANCE. 

8 (a) PART B AMENDMENTS.— 


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1 (1) SUBSIDIZED LOANS.—Section 428(c)(3)(C) 

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

3 1078(c)(3)(C)) is amended— 

4 (A) in clause (iii), by inserting before the 

5 semicolon the following: ‘‘, and with respect to 

6 a forbearance granted to a borrower on or after 

7 the date of enactment of the End Capitalization 

8 for Struggling Borrowers Act on a loan made, 

9 insured or guaranteed under this section or on 

10 a Federal Direct Stafford Loan, provide infor11 mation to the borrower to assist the borrower 

12 in understanding that interest shall accrue on 

13 the loan but not be capitalized at the expiration 

14 of such period of forbearance’’; and 

15 (B) in clause (iv)— 

16 (i) in subclause (III), by inserting be17 fore the semicolon at the end the following: 

18 ‘‘, except that this subclause shall not 

19 apply with respect to any period of for20 bearance beginning on or after the date of 

21 enactment of the End Capitalization for 

22 Struggling Borrowers Act’’; and 

23 (ii) in subclause (IV), by inserting be24 fore the semicolon at the end the following: 

25 ‘‘except that this subclause shall not apply 


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1 with respect to any period of forbearance 

2 beginning on or after the date of enact3 ment of the End Capitalization for Strug4 gling Borrowers Act’’. 

5 (2) UNSUBSIDIZED LOANS.—Section 

6 428H(e)(2)(A)(ii)(III) of the Higher Education Act 

7 of 1965 (20 U.S.C. 1078–8(e)(2)(A)(ii)(III)) is 

8 amended by inserting before the semicolon the fol9 lowing: ‘‘, except that with respect to a deferment 

10 during a period described in clauses (ii) through (iv) 

11 of section 427(a)(2)(C) or clauses (ii) through (v) of 

12 section 428(b)(1)(M), or any period of forbearance 

13 beginning on or after the date of enactment of the 

14 End Capitalization for Struggling Borrowers Act, on 

15 a loan made, insured, or guaranteed under this sec16 tion or on a Federal Direct Unsubsidized Stafford 

17 Loan, interest shall not be added to the principal 

18 amount of the loan at the expiration of such period’’. 

19 (b) PART D AMENDMENTS.—Subparagraph (B) of 

20 section 455(f)(1) of the Higher Education Act of 1965 

21 (20 U.S.C. 1087e(f)(1)) is amended to read as follows: 

22 ‘‘(B) in the case of a Federal Direct PLUS 

23 Loan, a Federal Direct Unsubsidized Stafford 

24 Loan, or a Federal Direct Consolidation Loan 

25 not described in subparagraph (A)(ii)— 


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1 ‘‘(i) for a deferment during a period 

2 described in paragraph (2)(A), shall accrue 

3 and be capitalized or paid by the borrower; 

4 and 

5 ‘‘(ii) for a deferment during a period 

6 described in subparagraphs (B) through 

7 (D) of paragraph (2), shall accrue but not 

8 be capitalized.’’. 

Æ 


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