Frontline Health Care Worker Student Loan Assistance Act of 2020

To provide student loan forgiveness to health care workers who are on the frontline in response to COVID–19. 1. Short title This Act may be cited as the Frontline Health Care Worker Student Loan Assistance Act of 2020 2. Loan forgiveness for frontline health care workers (a) Program authorized (1) Loan forgiveness authorized Beginning on the date that is 90 days after the date of enactment of this Act, the Secretaries concerned shall, subject to paragraph (3) subsection (b) section 9(4)(B) (2) Methods of loan forgiveness (A) In general To provide loan forgiveness under paragraph (1) (i) through the holder of the loan, to assume the obligation to repay, by direct payments on behalf of a borrower to the holder of such loan, a qualified loan amount for an eligible Federal student loan made, insured, or guaranteed under part B of title IV of the Higher Education Act of 1965 ( 20 U.S.C. 1071 (ii) to cancel a qualified loan amount for an eligible Federal student loan made under part D or part E of such title ( 20 U.S.C. 1087a (iii) to assume the obligation to repay, by direct payments on behalf of a borrower to the private educational lender of such loan, a qualified loan amount of an eligible private student loan in order to discharge the borrower of such loan from any remaining obligation to the private educational lender with respect to such qualified loan amount. (B) Forgiveness through reimbursement Notwithstanding subparagraph (A) (i) outstanding eligible Federal student loan balance of the borrower during the covered period, the Secretary of Education shall reimburse the borrower, through direct payment to the borrower, in an amount equal to the total amount of such monthly payments made by the borrower on or after January 31, 2020, and before the first date on which any portion of a borrower’s loans are forgiven in accordance with subparagraph (A) (ii) outstanding eligible private student loan balance of the borrower during the covered period, the Secretary of the Treasury shall reimburse the borrower, through direct payment to the borrower, in an amount equal to the total amount of such monthly payments made by the borrower on or after January 31, 2020, and before the first date on which any portion of a borrower’s loans are forgiven in accordance with subparagraph (A) (3) Authority of the Secretaries concerned The Secretary of Education shall have the authority to carry out the loan forgiveness program authorized under this section only with respect to eligible Federal student loans, and the Secretary of the Treasury shall have the authority to carry out such loan forgiveness program only with respect to eligible private student loans. (b) Qualified loan amount (1) Total amount The Secretaries concerned shall forgive for each borrower who is a frontline health care worker an amount equal to the sum of the monthly loan payments that are due, suspended, or paid on each eligible Federal student loan and each eligible private student loan of the borrower during the covered period. Each monthly loan payment that is included in the qualified loan amount of such a borrower shall be paid, pursuant to paragraph (2) (2) Methods of forgiveness of qualified loan amount The Secretaries concerned shall determine the method of forgiveness for each monthly loan payment included in a qualified loan amount as follows: (A) The Secretaries concerned shall provide forgiveness in accordance with subparagraph (A) of subsection (a)(2) (i) each monthly loan payment during the covered period that is due on or after the date that is 90 days after the date of enactment of this Act; (ii) each monthly loan payment during the covered period that is due before the date that is 90 days after the date of enactment of this Act and has not been paid before such date; and (iii) the total amount of the monthly loan payments that are suspended as a result of a qualifying emergency pursuant to section 3513 of the CARES Act ( 20 U.S.C. 1001 (B) The Secretaries concerned shall provide forgiveness in accordance with subparagraph (B) of subsection (a)(2) (c) Consideration of payments Notwithstanding any other provision of the Higher Education Act of 1965 ( 20 U.S.C. 1001 20 U.S.C. 1071 (d) Exclusion from taxable income The qualified loan amount of a borrower that is forgiven under this section, including through reimbursement pursuant to subsection (a)(2)(B) 3. Coordinated program requirements The Secretaries concerned shall jointly develop the program required under section 2 (1) borrowers with outstanding eligible Federal student loans and borrowers with outstanding eligible private student loans are notified of the availability of student loan forgiveness under this Act; (2) frontline health care workers who are borrowers of both eligible Federal student loans and eligible private student loans may apply for loan forgiveness of both Federal and private student loans under section 2 with submission of only one application; (3) determinations of eligibility are uniform and consistent, regardless of whether the frontline health care worker is a borrower of eligible Federal student loans, eligible private student loans, or both; and (4) such program is made available to any frontline health care worker (including a worker who does not meet the definition of frontline health care worker solely because such worker did not complete at least 3 months of full-time service (or the equivalent) prior to death) who was a borrower of eligible Federal student loans, eligible private student loans, or both, and who died as a result of the coronavirus, to relieve the family and estate of such deceased worker of the burden of the student loan obligation of the such deceased worker. 4. Notice of availability of loan forgiveness (a) Notice to the public Not later than 15 days after the date of enactment of this Act, the Secretaries concerned, in consultation with institutions of higher education and lenders and holders of Federal student loans and private education loans, shall take such actions as may be necessary to ensure that borrowers who have outstanding eligible Federal student loans, outstanding eligible private student loans, or both, are aware of the student loan forgiveness program authorized by this Act. Such information shall— (1) be presented in a form that is widely available to the public, especially to borrowers with eligible Federal student loans, eligible private student loans, or both, and to frontline health care workers; (2) be easily understandable; and (3) clearly notify borrowers that to be considered for loan forgiveness under this Act, borrowers must submit an application to the Secretaries concerned, and must do so during the application period described in section 5 (b) Notice in Federal loans statements With each billing statement sent to a borrower during the two-year period beginning on the 15th day after the date of enactment of this Act, the Secretary of Education shall include, and shall require each holder of eligible Federal student loans to include, a notice informing the borrower of the availability of the student loan forgiveness program for frontline health care workers under this Act, including where to find information about how to qualify as a frontline health care worker, how to apply to such program, the types of Federal and private loans that are eligible for forgiveness, and the application deadline for such program. (c) Notice in private loans statements Section 128(e) of the Truth in Lending Act ( 15 U.S.C. 1638(e) (12) Notice required along with billing statements With each billing statement sent to the borrower during the two-year period beginning on the 15th day after the date of enactment of the Frontline Health Care Worker Student Loan Assistance Act of 2020 Frontline Health Care Worker Student Loan Assistance Act of 2020 . 5. Application and determination of eligibility (a) Application period An individual may apply for loan forgiveness under section 2 (b) Determination of eligibility (1) Development of application Not later than 45 days after the date of enactment of this Act, the Secretaries concerned shall jointly, in consultation with the Secretary of Health and Human Services and the Intergovernmental Working Group (in accordance with section 6 (2) Application requirements The application required under paragraph (1) (A) make a determination of whether the applicant— (i) is a frontline health care worker; and (ii) is a borrower of an eligible Federal student loan, an eligible private student loan, or both; and (B) determine the qualified loan amount of the applicant, if the application is approved, including the amount described in section 2(b)(2)(B) (3) Determination Not later than 30 days after the date on which the Secretaries concerned receive an application from an individual in accordance with this Act, the Secretaries concerned shall— (A) confirm that such individual is a frontline health care worker who is a borrower of an eligible Federal student loan, an eligible private student loan, or both, then notify the individual of such confirmation, and grant the individual loan forgiveness in accordance with section 2; or (B) determine that such individual is not a frontline health care worker who is a borrower of an eligible Federal student loan, an eligible private student loan, or both, then deny such application, and provide a notification to the individual that includes— (i) that the application was denied; (ii) the reason for such denial; and (iii) if the application was denied because the Secretaries concerned determined that the applicant was not a frontline health care worker, an explanation that the individual may appeal the denial to the Intergovernmental Working Group within 30 days of the date of such denial, and information on how the applicant may submit such an appeal. (4) Treatment after successful appeal In the case that an individual appeals the denial of an application to the Intergovernmental Working Group in accordance with section 6 6. Intergovernmental Working Group (a) Establishment Not later than 30 days after the date of the enactment of this Act, the Secretaries concerned and the Secretary of Health and Human Services shall jointly establish an Intergovernmental Working Group to assist, in accordance with this section, with the administration of the program required under this Act. (b) Membership The Intergovernmental Working Group shall have 9 members, of whom— (1) five members shall be selected by the Secretary of Health and Human Services from employees of the Department of Health and Human Services who are knowledgeable concerning the education, training, employment, and medical practices of health care professionals and the health care workforce; (2) two members shall be selected by the Secretary of Education from employees of the Department of Education who are knowledgeable concerning eligible Federal student loans and the administration of such loans; and (3) two members shall be selected by the Secretary of the Treasury from employees of the Department of the Treasury who are knowledgeable concerning eligible private student loans, the administration of such loans, and private educational lenders. (c) Duties The Intergovernmental Working Group established under this section shall— (1) develop a procedure or list of requirements, including a list of the information an individual needs to provide for the Secretaries concerned, to determine whether an individual has made significant contributions to the medical response to the qualifying emergency for purposes of determining whether the individual is a frontline health care worker as defined in section 9(6)(B) (2) not later than 10 days after the date on which the Council is established, report the information described in paragraph (1) section 5(b)(1) (3) not later than 60 days after the date on which the Council is established, develop a process by which— (A) an applicant who is denied loan forgiveness under this Act by the Secretaries concerned because of a determination that the applicant is not a frontline health care worker may, within 30 days of the date of such denial, submit an appeal of such denial to the Intergovernmental Working Group; and (B) the Intergovernmental Working Group will review the appeal and make a determination with respect to whether the applicant is a frontline health care worker; and (4) upon the request for an appeal by an applicant described in paragraph (3) 7. Regulations; Waivers (a) Regulations The Secretaries concerned are authorized to issue such regulations as may be necessary to carry out this Act. (b) Waivers In carrying out this Act, the Secretaries concerned may waive the application of— (1) subchapter I of chapter 35 Paperwork Reduction Act (2) the master calendar requirements under section 482 of the Higher Education Act of 1965 ( 20 U.S.C. 1089 (3) negotiated rulemaking under section 492 of the Higher Education Act of 1965 ( 20 U.S.C. 1098a (4) the requirement to publish the notices related to the system of records of the agency before implementation required under paragraphs (4) and (11) of section 552a(e) of title 5, United States Code (commonly known as the Privacy Act of 1974 8. Termination of authority The authority of the Secretaries concerned to carry out the loan forgiveness program under section 2 section 6 section 5(a) 9. Definitions In this Act: (1) Coronavirus The term coronavirus Public Law 116–123 (2) Covered period The term covered period 42 U.S.C. 247d (3) COVID-related health care services The term COVID-related health care services (A) the diagnosis, prevention, or treatment of the coronavirus, including through telehealth services; (B) the assessment or care of the health of a human being related to an actual or suspected case of the coronavirus, including through telehealth services; or (C) patient care in a setting where there is a reasonable expectation of risk of exposure to the coronavirus. (4) Eligible Federal student loan The term eligible Federal student loan (A) a consolidation loan under such title; and (B) a loan made to the parent of a dependent student under section 428B of such Act ( 20 U.S.C. 1078–2 (5) Eligible private student loan The term eligible private student loan 15 U.S.C. 1650(a) 20 U.S.C. 1070 (6) Frontline health care worker The term frontline health care worker (A) is— (i) a doctor, medical resident, medical intern, medical fellow, nurse, home health care worker, mental health professional, or other health care professional who is licensed, registered, or certified under Federal or State law to provide health care services and who provides COVID-related health care services; (ii) a student enrolled at an institution of higher education in a medical, nursing, or other relevant health care program of study who provides COVID-related health care services; (iii) a laboratory worker who conducts, evaluates, or analyzes coronavirus testing; (iv) a medical researcher who conducts research related to the prevention, treatment, or cure of the coronavirus; or (v) an emergency medical services worker who responds to health emergencies or transports patients to hospitals or other medical facilities; or (B) does not meet the requirements of any of the clauses under subparagraph (A), but is a health care professional who is licensed, registered, or certified under Federal or State law to provide health care and has made significant contributions to the medical response to the qualifying emergency. (7) Institution of higher education The term institution of higher education 20 U.S.C. 1002 (8) Private educational lender The term private educational lender 15 U.S.C. 1650(a) (9) Qualifying emergency The term qualifying emergency (A) the public health emergency with respect to COVID–19 declared by the Secretary of Health and Human Services under section 319 of the Public Health Service Act ( 42 U.S.C. 247d (B) an event related to the coronavirus for which— (i) the President declared a major disaster or an emergency under section 401 or 501, respectively, of the Robert T. Stafford Disaster Relief and Emergency Assistance Act ( 42 U.S.C. 5170 (ii) the governor of a State or territory of the United States declared an emergency; or (C) a national emergency related to the coronavirus declared by the President under section 201 of the National Emergencies Act ( 50 U.S.C. 1601 (10) Secretaries concerned The term Secretaries concerned (A) the Secretary of Education, with respect to eligible Federal student loans and borrowers of such loans; and (B) the Secretary of the Treasury, with respect to eligible private student loans and borrowers of such loans.

Summary: Frontline Health Care Worker Student Loan Assistance Act of 2020 This bill establishes a temporary program to provide federal and private student loan forgiveness to certain frontline health care workers. Frontline health care workers are those individuals who have made significant contributions to the medical response (e.g., patient care, medical research, or testing) to the COVID-19 (i.e., coronavirus disease 2019) national emergency.