College Loan Deferment for Recovery Act

To amend the Higher Education Act of 1965 to allow for the deferment of certain student loans during a period in which a borrower is enrolled in a drug treatment program. 1. Short title This Act may be cited as the College Loan Deferment for Recovery Act 2. Student loan deferment for borrowers enrolled in a drug treatment program (a) Direct Loans Section 455(f) of the Higher Education Act of 1965 ( 20 U.S.C. 1087e(f) (1) by redesignating paragraphs (3) and (4) as paragraphs (4) and (5), respectively; and (2) by inserting after paragraph (2) the following: (3) Deferment for borrowers enrolled in a drug treatment program (A) Effect on principal and interest A borrower of a loan made under this part who meets the requirements of subparagraph (B) shall be eligible for a deferment, during which periodic installments of principal need not be paid, and interest shall not accrue. (B) Eligibility A borrower of a loan made under this part shall be eligible for a deferment during— (i) any period in which such borrower is enrolled in a drug treatment program; and (ii) the 30 days after such period. (C) Drug treatment program defined In this paragraph, the term drug treatment program (D) Applicability This paragraph shall apply with respect to loans— (i) made on or after the date of the enactment of this paragraph; or (ii) in repayment on the date of the enactment of this paragraph. . (b) Terms of Federally Insured Student Loans Section 427(a)(2)(C) of the Higher Education Act of 1965 ( 20 U.S.C. 1077(a)(2)(C) (1) in clause (ii), by striking ; or (2) in clause (iii), by inserting or (3) by inserting after clause (iii) the following: (iv) in which the borrower is enrolled in a drug treatment program (as defined in section 455(f)(3)(C)), and the 30 days after such period. . (c) FFEL program Section 428(b)(1)(M) of the Higher Education Act of 1965 ( 20 U.S.C. 1078(b)(1)(M) (1) in clause (iii), by striking or (II); or or (II); (2) in clause (iv), by inserting or (3) by adding at the end the following: (v) during which the borrower is enrolled in a drug treatment program (as defined in section 455(f)(3)(C)), and the 30 days after such period; . (d) Federal Perkins loans Section 464(c)(2) of the Higher Education Act of 1965 ( 20 U.S.C. 1087dd(c)(2) (1) in subparagraph (A)— (A) in clause (iv), by striking ; or (B) in clause (v), by inserting or (C) by inserting after clause (v) the following: (vi) during which the borrower is enrolled in a drug treatment program (as defined in section 455(f)(3)(C)), and the 30 days after such period; . (e) Interest on unsubsubsidized Stafford Loans Section 428H(e)(2) of the Higher Education Act of 1965 ( 20 U.S.C. 1078–8(e)(2) (1) in subparagraph (A), by striking Interest Except as provided in subparagraph (C), interest (2) by adding at the end the following: (C) Interest shall not accrue on a loan deferred under section 428(b)(1)(M)(v) or 427(a)(2)(C)(iv). . (f) Applicability The amendments made by this Act shall apply with respect to loans— (1) made on or after the date of the enactment of this Act; or (2) in repayment on the date of the enactment of this Act.

Summary: College Loan Deferment for Recovery Act This bill amends the Higher Education Act of 1965 to allow borrowers to defer student loans while they are enrolled in a drug treatment program and during the 30 days after completing the program.