I 

117TH CONGRESS 

1ST SESSION H. R. 6125 

To authorize the Secretary of Education to discharge or cancel Federal 

student loan liability for borrowers of disaster loans under section 7(b) 

of the Small Business Act made on or after January 1, 2020, and 

for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

DECEMBER 2, 2021 

Mr. CARTER of Louisiana introduced the following bill; which was referred to 

the Committee on Education and Labor 

A BILL 

To authorize the Secretary of Education to discharge or 

cancel Federal student loan liability for borrowers of 

disaster loans under section 7(b) of the Small Business 

Act made on or after January 1, 2020, 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 ‘‘No Double Debt for 

5 Disaster Survivors Act of 2021’’. 


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1 SEC. 2. TREATMENT OF LOANS FOR SBA DISASTER LOAN 

2 RECIPIENTS. 

3 (a) DISCHARGE FOR SBA DISASTER LOAN RECIPI4 ENTS.— 

5 (1) FFEL AND FEDERAL DIRECT LOANS.—Sec6 tion 437 of the Higher Education Act of 1965 (20 

7 U.S.C. 1087) is amended— 

8 (A) in the section header, by inserting ‘‘; 

9 OTHER REPAYMENT’’ before the period; and 

10 (B) by adding at the end the following new 

11 subsection: 

12 ‘‘(e) LOANS OF SBA DISASTER LOAN RECIPIENTS.— 

13 If a borrower who received a loan made, insured, or guar14 anteed under this part also received, on or after January 

15 1, 2020, a loan made under section 7(b) of the Small Busi16 ness Act (15 U.S.C. 636(b)), the Secretary shall discharge 

17 the borrower’s liability on the loan under this part by re18 paying the lesser of— 

19 ‘‘(1) the amount owed on the loan under this 

20 part; or 

21 ‘‘(2) an amount owed on the loan under this 

22 part that is equal to the amount of the loan received 

23 by the borrower that is made under section 7(b) of 

24 the Small Business Act (15 U.S.C. 636(b)).’’. 


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1 (2) PERKINS LOANS.—Section 464(c)(1)(F) of 

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

3 1087dd(c)(1)(F)) is amended— 

4 (A) by moving clauses (i) through (iv) two 

5 ems to the left; 

6 (B) by striking ‘‘or’’ at the end of clause 

7 (iii); 

8 (C) by inserting ‘‘or’’ after the semicolon 

9 in clause (iv); and 

10 (D) by adding at the end the following new 

11 clause: 

12 ‘‘(v) if the borrower received, on or 

13 after January 1, 2020, a loan made under 

14 section 7(b) of the Small Business Act (15 

15 U.S.C. 636(b)), except that the amount of 

16 liability to repay a loan that is cancelled 

17 under this clause shall not exceed the 

18 amount of the loan made under section 

19 7(b) of the Small Business Act (15 U.S.C. 

20 636(b)) that is received by the borrower;’’. 

21 (b) PROCEDURES FOR DISCHARGE FOR SBA DIS22 ASTER LOAN RECIPIENTS.—Part G of title IV of the 

23 Higher Education Act of 1965 (20 U.S.C. 1088 et seq.) 

24 is amended by inserting after section 493D the following: 


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1 ‘‘SEC. 493E. PROCEDURES FOR DISCHARGE FOR SBA DIS2 ASTER LOAN RECIPIENTS. 

3 ‘‘(a) PROCEDURES.—The Secretary, in consultation 

4 with the Administrator of the Small Business Administra5 tion, shall develop and implement a procedure to— 

6 ‘‘(1) identify borrowers of loans under part B, 

7 part D, and part E of this title who have received, 

8 on or after January 1, 2020, a loan made under sec9 tion 7(b) of the Small Business Act (15 U.S.C. 

10 636(b)); 

11 ‘‘(2) provide any certifications or affidavits 

12 needed to enable such borrowers to document eligi13 bility for discharge or cancellation of student loans 

14 made, insured, or guaranteed under part B, part D, 

15 or part E of this title in accordance with section 437 

16 or section 464(c); and 

17 ‘‘(3) discharge or cancel student loans made, in18 sured, or guaranteed under part B, part D, and part 

19 E of this title, in accordance section 437 or section 

20 464(c), as soon as practicable after the date of en21 actment of the No Double Debt for Disaster Sur22 vivors Act of 2021, or, in the case of a borrower who 

23 receives a loan made under section 7(b) of the Small 

24 Business Act (15 U.S.C. 636(b)) after the date of 

25 enactment of such Act, the date on which the bor26 rower receives such loan. 


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1 ‘‘(b) REPORTS.— 

2 ‘‘(1) INITIAL REPORT.—Not later than 6 

3 months after the date of enactment of the No Dou4 ble Debt for Disaster Survivors Act of 2021, the 

5 Secretary and the Administrator of the Small Busi6 ness Administration jointly shall report and provide 

7 feedback to Congress on the progress made in devel8 oping and implementing the procedures required 

9 under subsection (a), including how such procedures 

10 will reduce waste, fraud, and abuse. 

11 ‘‘(2) ANNUAL REPORTS.—Not later than one 

12 year after the date of enactment of the No Double 

13 Debt for Disaster Survivors Act of 2021 and annu14 ally thereafter, the Secretary shall report to Con15 gress on— 

16 ‘‘(A) the number of individuals with loans 

17 discharged under section 437(e), cancelled 

18 under section 464(c)(1)(F)(v), or both; and 

19 ‘‘(B) the total dollar amount of loans dis20 charged or cancelled in accordance with such 

21 sections.’’. 

Æ 


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