GRAD Act of 2013

To restore and extend the grace period of Federal Direct Stafford Loans and Federal Direct Unsubsidized Stafford Loans. 1. Short title This Act may be cited as the Get Relief from Academic Debt Act of 2013 GRAD Act of 2013 2. Restoration and extension of the start of the repayment period of certain Federal direct loans (a) Restoration of interest subsidy during first 6-Month grace period Section 428(a)(3)(A)(i)(I) of the Higher Education Act of 1965 (20 U.S.C. 1078(a)(3)(A)(i)(I)) is amended by inserting or, for a Federal Direct Stafford Loan for which the first disbursement is made on or after July 1, 2013, which accrues prior to the beginning of the repayment period of the loan (except for interest which accrues during the last 6-months prior to the beginning of such period, in the case of a student who makes an election under section 3(b)(2) of the Get Relief from Academic Debt Act of 2013 , or (b) Grace-Period extension (1) Amendment Section 428(b)(7) of the Higher Education Act of 1965 ( 20 U.S.C. 1078(b)(7) (A) in subparagraph (A), by inserting or, in the case of a student who makes an election under section 3(b)(2) of the Get Relief from Academic Debt Act of 2013 6 months (B) in subparagraph (D), by inserting or, in the case of a student who makes an election under section 3(b)(2) of the Get Relief from Academic Debt Act of 2013 6-month period (2) Election of extended grace period for certain FDSL and FDUS Loans The Secretary of Education shall provide an opportunity for each borrower who has a Federal Direct Stafford Loan or Federal Direct Unsubsidized Stafford Loan for which the first disbursement is made on or after July 1, 2013, to elect a 12-month grace period, in accordance with section 428(b)(7) of the Higher Education Act of 1965, as amended by this subsection, before beginning repayment. 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, as determined under section 428(b)(7) of the Higher Education Act of 1965 as in effect on the day before the date of enactment of this Act; (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 in accordance with section 428(b)(7) of the Higher Education Act of 1965 (as amended by this subsection), unless the borrower specifically elects such 12-month grace period not later than 14 days before the start of the borrower’s repayment period, as determined under section 428(b)(7) of the Higher Education Act of 1965 as in effect on the day before the date of enactment of this Act.

Summary: Get Relief from Academic Debt Act of 2013 or the GRAD Act of 2013 - Amends title IV (Student Assistance) of the Higher Education Act of 1965 to allow borrowers of Direct Stafford Loans to opt to extend the period before they must begin to repay such loans to one year after they cease to carry at least one-half the normal full-time academic workload. (Currently, the repayment period for Direct Stafford Loans begins six months after borrowers cease to carry at least one-half the normal full-time academic workload.) Subsidizes the interest that accrues on Direct Stafford Loans for the first six months of that extended grace period. Makes this Act applicable to Direct Stafford Loans first disbursed on or after July 1, 2013.