Student Loan Borrower Safety Net Act of 2023

Subjects: Education, Economic performance and conditions, Government lending and loan guarantees, Higher education, Student aid and college costs

Summary:  <p><strong>Student Loan Borrower Safety Net Act of </strong><b>2023</b></p> <p>This bill requires the Department of Education (ED) to carry out a program to notify borrowers that normal payment obligations on their federal student loans will resume. </p> <p>Not later than 60 days before payment obligations are no longer suspended (as determined by ED), ED must provide at least six notices to borrowers indicating that their payment obligations will resume. These notices must also indicate the options for (1) enrolling in income-driven repayment plans, (2) participating in ED's Fresh Start program (this program offers special benefits for borrowers with defaulted federal student loans), and (3) rehabilitating or consolidating loans.</p> <p>ED must provide priority notification to certain borrowers, including those who missed a payment in the first three months of entering repayment on a loan. </p> <p>The bill allows borrowers to (1) submit an application or reapplication for an income-driven repayment plan and self-certify their income and family size, (2) change their repayment plan without a fee, and (3) apply for an economic hardship deferment.</p> <p>If a borrower misses a payment or payments on a loan during the 60 days after the payment suspension ends, then the loan must be held in administrative forbearance for 90 days.</p>

<html><body><pre>[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 644 Introduced in House (IH)]

&lt;DOC&gt;






118th CONGRESS
  1st Session
                                H. R. 644

  To protect borrowers of Federal student loans during the transition 
period following the end of the COVID-19 student loan repayment pause, 
                        and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 31, 2023

   Ms. Bonamici (for herself, Mrs. McBath, Ms. Wild, Ms. Norton, Ms. 
 Wilson of Florida, Mr. Carson, Mr. Vargas, Mr. Cleaver, Mr. Davis of 
Illinois, Mr. Evans, Mr. Thompson of California, Ms. Titus, Mr. Takano, 
Mr. Courtney, and Ms. Salinas) introduced the following bill; which was 
        referred to the Committee on Education and the Workforce

_______________________________________________________________________

                                 A BILL


 
  To protect borrowers of Federal student loans during the transition 
period following the end of the COVID-19 student loan repayment pause, 
                        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 ``Student Loan Borrower Safety Net Act 
of 2023''.

SEC. 2. EXTENSION OF APPLICATION AND RECERTIFICATION DEADLINE.

    (a) In General.--Section 3513 of the CARES Act (20 U.S.C. 1001 
note) is amended--
            (1) by amending subsection (g) to read as follows:
    ``(g) Notice to Borrowers of Covered Loans Relating to Transition 
Period.--Not later than the date that is 60 days prior to the first day 
on which a borrower's payment obligations on a covered loan are no 
longer suspended, as determined by the Secretary, the Secretary shall 
carry out a program to provide a total of not fewer than 6 notices 
through a combination of postal mail, telephone, and electronic 
communication to such a borrower indicating--
            ``(1) when the borrower's normal payment obligations will 
        resume;
            ``(2) that the borrower may be eligible to enroll in 
        income-driven repayment, including a brief description of the 
        most affordable and generous income-driven repayment options; 
        and
            ``(3) the options available to a borrower who is in 
        default, including--
                    ``(A) the option to participate in the Fresh Start 
                program of the Department of Education;
                    ``(B) the option to rehabilitate or consolidate the 
                borrower's loans; and
                    ``(C) a brief description of the benefits and 
                consequences of each option.''; and
            (2) by adding at the end the following:
    ``(h) Priority Notification.--
            ``(1) In general.--In carrying out subsection (g), the 
        Secretary shall give priority in accordance with paragraph (2) 
        to notifying borrowers who--
                    ``(A) during the 5-year period preceding March 31, 
                2020, missed a payment or payments for a period of not 
                less than 60 days with respect to a covered loan; and
                    ``(B) in the 5 years preceding March 31, 2020--
                            ``(i) missed a payment in the first 3 
                        months of entering repayment with respect to 
                        such a covered loan;
                            ``(ii) entered into a non-administrative 
                        forbearance or a economic hardship deferment 
                        with respect to such a covered loan--
                                    ``(I) on 2 or more occasions; or
                                    ``(II) for a period of longer than 
                                1 year;
                            ``(iii) were enrolled and subsequently 
                        unenrolled, or changed to less-than-half-time 
                        enrollment status, more than twice after 
                        entering repayment with respect to such a 
                        covered loan;
                            ``(iv) defaulted on such a covered loan; or
                            ``(v) on 3 or more occasions, missed two or 
                        more consecutive payments with respect to such 
                        a covered loan.
            ``(2) Priority.--In carrying out paragraph (1), the 
        Secretary shall--
                    ``(A) notify borrowers described in such paragraph 
                of the information specified in subsection (g) through 
                at least 3 additional and subsequent notifications 
                after the initial notification; or
                    ``(B) carry out other evidence-based outreach 
                activities that are designed to assist struggling 
                borrowers or borrowers who were otherwise at risk for 
                default before the COVID-19 pandemic, and report to 
                Congress on such activities.
    ``(i) Application or Recertification.--
            ``(1) In general.--A borrower of a covered loan may--
                    ``(A) during the period beginning on the date of 
                enactment of the Student Loan Borrower Safety Net Act 
                of 2023, and ending on the date that is one year after 
                the first day on which a borrower's payment obligations 
                on such loan are no longer suspended, submit a written, 
                verbal, or electronic application or reapplication for 
                an income-driven repayment plan with respect to such 
                loan; and
                    ``(B) under an application described in 
                subparagraph (A), self-certify the income and family 
                size of such borrower.
            ``(2) Change of repayment plans.--With respect to a covered 
        loan, in the case of a borrower of such a loan who opts to 
        change the repayment plan in which such borrower was enrolled 
        on the date of the enactment of this section--
                    ``(A) no fee or payment shall be required during 
                the period in which it takes such borrower to become 
                enrolled in such repayment plan; and
                    ``(B) before the borrower selects a new repayment 
                plan, the Secretary shall notify the borrower of the 
                most affordable and generous repayment plan available 
                to the borrower.
            ``(3) Economic hardship.--
                    ``(A) In general.--A borrower of a covered loan 
                who, due to an economic hardship, is unable to make 
                payments with respect to such loan on or after the 
                first day on which the borrower's payment obligations 
                on such loan are no longer suspended, may apply to the 
                Secretary for an economic hardship deferment for the 
                period beginning on the date of enactment of the 
                Student Loan Borrower Safety Net Act of 2023 and ending 
                on the date that is one year after the first day on 
                which the borrower's payment obligations on such loan 
                are no longer suspended. To apply for such a deferment, 
                a borrower shall submit a written, verbal, or 
                electronic certification of such economic hardship to 
                the Secretary.
                    ``(B) Notification.--The Secretary and any other 
                servicer of a covered loan shall notify borrowers who 
                miss a payment on such a loan of the availability of--
                            ``(i) income-driven repayment plans 
                        available in accordance with paragraph (1); and
                            ``(ii) an economic hardship deferment under 
                        this paragraph.
                    ``(C) Treatment of borrower with economic 
                hardship.--In the case of a borrower who submits 
                certification of an economic hardship under 
                subparagraph (A), the Secretary shall treat such 
                borrower in the same manner as a borrower with an 
                economic hardship under section 435(o) of the Higher 
                Education Act of 1965 (20 U.S.C. 1085(o)).
    ``(j) Missed Payments.--In the case of a borrower of a covered loan 
who misses a payment or payments on such a loan for the 60-day period 
beginning on the first day on which the borrower's payment obligations 
on such loan are no longer suspended, the Secretary or the holder of a 
loan described in subsection (k)(2) shall--
            ``(1) hold such loan in administrative forbearance for a 
        90-day period beginning on the date that is 60 days after the 
        first day on which the borrower's payment obligations on such 
        loan are no longer suspended; and
            ``(2) contact such borrower on at least 6 separate 
        occasions regarding the information included in subsection (g).
    ``(k) Covered Loan.--In this section, the term `covered loan' 
means--
            ``(1) a loan described in subsection (a); or
            ``(2) a loan--
                    ``(A) made, insured, or guaranteed under part B of 
                title IV of the Higher Education Act of 1965 (20 U.S.C. 
                1071 et seq.); and
                    ``(B) for which payments were suspended--
                            ``(i) pursuant to the Higher Education 
                        Relief Opportunities for Students Act of 2003 
                        (Public Law 108-76; 20 U.S.C. 1070 note); and
                            ``(ii) during a qualifying emergency.''.
                                 &lt;all&gt;
</pre></body></html>