II 

116TH CONGRESS 

1ST SESSION S. 1489 

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

separate joint consolidation loans. 

IN THE SENATE OF THE UNITED STATES 

MAY 15, 2019 

Mr. WARNER (for himself, Mr. RUBIO, and Mr. CORNYN) introduced the following bill; which was read twice and referred to the Committee on 

Health, Education, Labor, and Pensions 

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— 


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

2 following: 

3 ‘‘(1) IN GENERAL.—A borrower’’; and 

4 (2) by adding at the end the following: 

5 ‘‘(2) SEPARATING JOINT CONSOLIDATION

6 LOANS.— 

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

8 2 individuals who were previously a married 

9 couple, and who received a joint consolidation 

10 loan as such married couple under subpara11 graph (C) of section 428C(a)(3) (as such sub12 paragraph was in effect on or before June 30, 

13 2006), may apply to the Secretary for each in14 dividual borrower in the married couple (or pre15 viously married couple) to receive a separate 

16 Federal Direct Consolidation Loan under this 

17 part— 

18 ‘‘(i) that shall be equal to the sum 

19 of— 

20 ‘‘(I) the unpaid principal and ac21 crued unpaid interest of the percent22 age of the joint consolidation loan 

23 that, as of the day before such joint 

24 consolidation loan was made, was at25 tributable to the loans of the indiVerDate Sep 11 2014 02:25 May 25, 2019 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S1489.IS S1489

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1 vidual borrower for whom such sepa2 rate consolidation loan is being made; 

3 and 

4 ‘‘(II) any other loans described in 

5 section 428C(a)(4) that such indi6 vidual borrower selects for consolida7 tion under this part; 

8 ‘‘(ii) the proceeds of which shall be 

9 paid by the Secretary to the holder or 

10 holders— 

11 ‘‘(I) of the joint consolidation 

12 loan for the purpose of discharging 

13 the liability on the percentage of such 

14 joint consolidation loan described in 

15 clause (i)(I); and 

16 ‘‘(II) of the loans selected for 

17 consolidation under clause (i)(II) for 

18 the purpose of discharging the liability 

19 on such loans; 

20 ‘‘(iii) that has the same rate of inter21 est as the joint consolidation loan; 

22 ‘‘(iv) for which any payment made 

23 under section 455(m)(1)(A) on the joint 

24 consolidation loan during a period in which 

25 the individual borrower for whom such sepVerDate Sep 11 2014 02:25 May 25, 2019 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S1489.IS S1489

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1 arate consolidation loan is being made was 

2 employed in a public service job described 

3 in section 455(m)(1)(B) shall be treated as 

4 if such payment were made on such sepa5 rate consolidation loan; and 

6 ‘‘(v) for which any payment made 

7 under an income contingent repayment 

8 plan or an income-based repayment plan 

9 described in subparagraph (D) or (E) of 

10 section 455(d)(1), respectively, on the joint 

11 consolidation loan shall be treated as if 

12 such payment were made on such separate 

13 consolidation loan. 

14 ‘‘(B) APPLICATION FOR SEPARATE DIRECT

15 CONSOLIDATION LOAN.— 

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

17 provided in clause (ii), to receive separate 

18 consolidation loans under subparagraph 

19 (A), both individual borrowers in a married 

20 couple (or previously married couple) shall 

21 jointly apply under subparagraph (A). 

22 ‘‘(ii) SEPARATE APPLICATION.—An 

23 individual borrower in a married couple (or 

24 previously married couple) may apply for a 

25 separate consolidation loan under subparaVerDate Sep 11 2014 02:25 May 25, 2019 Jkt 089200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S1489.IS S1489

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1 graph (A) separately and without regard to 

2 whether or when the other individual bor3 rower in the married couple (or previously 

4 married couple) applies under subpara5 graph (A), in a case in which— 

6 ‘‘(I) the individual borrower has 

7 experienced from the other individual 

8 borrower— 

9 ‘‘(aa) domestic violence (as 

10 defined in section 40002(a) of 

11 the Violence Against Women Act 

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

13 or 

14 ‘‘(bb) economic abuse (in15 cluding behaviors that control 

16 such borrower’s ability to ac17 quire, use, and maintain access 

18 to money, credit, or the joint fi19 nancial obligations of both bor20 rowers); 

21 ‘‘(II) the individual borrower cer22 tifies, on a form approved by the Sec23 retary, that such borrower is unable 

24 to reasonably reach or access the loan 


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1 information of the other individual 

2 borrower; or 

3 ‘‘(III) the Secretary determines 

4 that authorizing each individual bor5 rower to apply separately under sub6 paragraph (A) would be in the best 

7 fiscal interests of the Federal Govern8 ment. 

9 ‘‘(C) BORROWER ELIGIBILITY.—Notwith10 standing section 428C(a)(3)(A), the Secretary 

11 shall award a consolidation loan under this part 

12 to each borrower who— 

13 ‘‘(i) applies for such loan under sub14 paragraph (A); and 

15 ‘‘(ii) meets the requirements of sub16 paragraphs (A) and (B).’’. 

17 (b) CONFORMING AMENDMENT.—Section 

18 428C(a)(3)(B)(i)(V) of the Higher Education Act of 1965 

19 (20 U.S.C. 1078–3(a)(3)(B)(i)(V)) is amended— 

20 (1) in item (bb), by striking ‘‘or’’ after the 

21 semicolon; 

22 (2) in item (cc), by striking the period and in23 serting ‘‘; or’’; and 

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


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1 ‘‘(dd) for the purpose of sep2 arating a joint consolidation loan 

3 into 2 separate Federal Direct 

4 Consolidation Loans under sec5 tion 455(g)(2).’’. 

Æ 


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