COVID-19 Graduate Relief Act

To amend the Higher Education Act of 1965 to provide for deferral of loan repayment for graduates during the period of the coronavirus. 1. Short title This Act may be cited as the COVID-19 Graduate Relief Act 2. Deferral of loan repayment for graduates during the period of the coronavirus (a) In general Part G of title IV of the Higher Education Act of 1965 ( 20 U.S.C. 1088 493E. Deferral of loan repayment for graduates during the period of the coronavirus (a) Deferral of loan repayment In addition to any deferral of repayment of a loan made under this title pursuant to this title, a borrower of a loan under this title who is an eligible individual as described in subsection (b), shall be eligible for a deferment of such loan during the period, not to exceed 3 years, following the date of enactment of the COVID-19 Graduate Relief Act. (b) Eligible individual (1) In general A borrower of a loan under this title is an eligible individual if the individual graduates from the eligible institution for which the individual borrowed the loan to enroll during the period beginning on January 1, 2020, and ending on December 31, 2020. (2) Extension The Secretary may extend the period described in paragraph (1) for additional 1-year periods, but not later than through December 31, 2022, if the Secretary determines, in writing, in consultation with the Secretary of Labor, the Secretary of Treasury, and the Secretary of Health and Human Services, that the anticipated economic impact of the coronavirus on graduates of eligible institutions over the relevant 1-year extension period necessitates such extension. (3) Considerations In making a determination regarding whether the anticipated economic impact of the coronavirus on graduates of eligible institutions necessitates an extension pursuant to paragraph (2), the Secretary shall consider— (A) whether a national emergency with respect to the coronavirus is in effect; (B) relevant economic indicators, including recent unemployment statistics from the Bureau of Labor Statistics; and (C) relevant data and projections related to the transmission or seasonal recurrence of the coronavirus and any existing or anticipated measures by Federal, State, or local governments to prevent, prepare for, and respond to the coronavirus. (c) Coronavirus The term coronavirus Public Law 116–123 . (b) Effective date The amendment made by subsection (a) shall take effect from the period beginning on the date of enactment of this Act until the date that is 3 years after such date of enactment.

Summary: COVID-19 Graduate Relief Act This bill allows students who graduate from institutions of higher education in 2020 to defer payments on their federal student loans for up to three years. The Department of Education (ED) may extend deferment eligibility to students who graduate in 2021 and 2022, if ED determines that the anticipated economic impact of the coronavirus (i.e., the virus that causes COVID-19 or another coronavirus with pandemic potential) on these graduates necessitates an extension. ED must consider certain factors, such as recent unemployment statistics from the Bureau of Labor Statistics, when determining whether to extend deferment eligibility to these graduates.