No Double Debt for Disaster Survivors Act of 2021

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. Short title This Act may be cited as the No Double Debt for Disaster Survivors Act of 2021 2. Treatment of loans for SBA disaster loan recipients (a) Discharge for SBA disaster loan recipients (1) FFEL and Federal Direct loans Section 437 of the Higher Education Act of 1965 ( 20 U.S.C. 1087 (A) in the section header, by inserting ; Other repayment (B) by adding at the end the following new subsection: (e) Loans of SBA disaster loan recipients If a borrower who received a loan made, insured, or guaranteed under this part also received, on or after January 1, 2020, a loan made under section 7(b) of the Small Business Act ( 15 U.S.C. 636(b) (1) the amount owed on the loan under this part; or (2) an amount owed on the loan under this part that is equal to the amount of the loan received by the borrower that is made under section 7(b) of the Small Business Act ( 15 U.S.C. 636(b) . (2) Perkins loans Section 464(c)(1)(F) of the Higher Education Act of 1965 ( 20 U.S.C. 1087dd(c)(1)(F) (A) by moving clauses (i) through (iv) two ems to the left; (B) by striking or (C) by inserting or (D) by adding at the end the following new clause: (v) if the borrower received, on or after January 1, 2020, a loan made under section 7(b) of the Small Business Act ( 15 U.S.C. 636(b) 15 U.S.C. 636(b) . (b) Procedures for discharge for SBA disaster loan recipients Part G of title IV of the Higher Education Act of 1965 ( 20 U.S.C. 1088 et seq. 493E. Procedures for discharge for SBA disaster loan recipients (a) Procedures The Secretary, in consultation with the Administrator of the Small Business Administration, shall develop and implement a procedure to— (1) identify borrowers of loans under part B, part D, and part E of this title who have received, on or after January 1, 2020, a loan made under section 7(b) of the Small Business Act ( 15 U.S.C. 636(b) (2) provide any certifications or affidavits needed to enable such borrowers to document eligibility for discharge or cancellation of student loans made, insured, or guaranteed under part B, part D, or part E of this title in accordance with section 437 or section 464(c); and (3) discharge or cancel student loans made, insured, or guaranteed under part B, part D, and part E of this title, in accordance section 437 or section 464(c), as soon as practicable after the date of enactment of the No Double Debt for Disaster Survivors Act of 2021, or, in the case of a borrower who receives a loan made under section 7(b) of the Small Business Act ( 15 U.S.C. 636(b) (b) Reports (1) Initial report Not later than 6 months after the date of enactment of the No Double Debt for Disaster Survivors Act of 2021, the Secretary and the Administrator of the Small Business Administration jointly shall report and provide feedback to Congress on the progress made in developing and implementing the procedures required under subsection (a) (2) Annual reports Not later than one year after the date of enactment of the No Double Debt for Disaster Survivors Act of 2021 and annually thereafter, the Secretary shall report to Congress on— (A) the number of individuals with loans discharged under section 437(e), cancelled under section 464(c)(1)(F)(v), or both; and (B) the total dollar amount of loans discharged or cancelled in accordance with such sections. .

Summary: No Double Debt for Disaster Survivors Act of 2021 This bill directs the Department of Education to discharge the outstanding federal student loan debt for a borrower who received, on or after January 1, 2020, a Small Business Administration (SBA) disaster loan. Further, the bill specifies that the amount of student loan debt discharged may not exceed the amount of the SBA disaster loan.