er Education Act of 1965 (20 U.S.C. 
1087–1); and 
‘‘(ii) in the case of a Federal student 
loan defined in section 3502(a)(2)(C), the 
Secretary of Health and Human Services 
shall pay, on a monthly basis, the amount 
of interest due on the unpaid principal of 
such loan to the holder of such loan. 
‘‘(D) PERIOD DESCRIBED.— 
‘‘(i) IN
GENERAL.—The period de-
scribed in this subparagraph is the period 
beginning on March 13, 2020, and ending 
the day following the date of the enact-
ment of the COVID–19 Student Loan Re-
lief Extension Act that is 2 months after 
the national U–5 measure of labor under-
utilization shows initial signs of recovery. 
‘‘(ii) DEFINITIONS.—In this subpara-
graph: 
‘‘(I) NATIONAL U–5 MEASURE OF 
LABOR
UNDERUTILIZATION.—The 
term ‘national U–5 measure of labor 
underutilization’ means the season-
ally-adjusted, monthly U–5 measure 
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of labor underutilization published by 
the Bureau of Labor Statistics. 
‘‘(II) INITIAL SIGNS OF RECOV-
ERY.—The term ‘initial signs of recov-
ery’ means that the average national 
U–5 measure of labor underutilization 
for months in the most recent 3-con-
secutive-month period for which data 
are available— 
‘‘(aa) is lower than the high-
est value of the average national 
U–5 measure of labor under-
utilization for a 3-consecutive- 
month period during the period 
beginning in March 2020 and the 
most recent month for which 
data from the Bureau of Labor 
Statistics are available by an 
amount that is equal to or great-
er than one-third of the dif-
ference between— 
‘‘(AA) the highest value 
of the average national U–5 
measure of labor under-
utilization for a 3-consecu-
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tive-month 
period 
during 
such period; and 
‘‘(BB) the value of the 
average national U–5 meas-
ure of labor underutilization 
for the 3-consecutive-month 
period ending in February 
2020; and 
‘‘(bb) has decreased for each 
month during the most recent 2 
consecutive months for which 
data from the Bureau of Labor 
Statistics are available. 
‘‘(E) OTHER DEFINITIONS.—In this para-
graph: 
‘‘(i) DEFAULT.—The term ‘default’— 
‘‘(I) in the case of a Federal stu-
dent loan made, insured, or guaran-
teed under part B or D of the Higher 
Education Act of 1965, has the mean-
ing given such term in section 435(l) 
of the Higher Education Act of 1965 
(20 U.S.C. 1085); 
‘‘(II) in the case of a Federal 
student loan made under part E of 
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pamtmann on DSKBC07HB2PROD with BILLS
the Higher Education Act of 1965, 
has the meaning given such term in 
section 674.2 of title 34, Code of Fed-
eral Regulations (or successor regula-
tions); or 
‘‘(III) in the case of a Federal 
student 
loan 
defined 
in 
section 
3502(a)(2)(C), has the meaning given 
such term in section 721 or 835 of 
the Public Health Service Act (42 
U.S.C. 292q, 297a), as applicable. 
‘‘(ii) 
GRACE
PERIOD.—The 
term 
‘grace period’ means— 
‘‘(I) in the case of a Federal stu-
dent loan made, insured, or guaran-
teed under part B or D of the Higher 
Education Act of 1965, the 6-month 
period after the date the student 
ceases to carry at least one-half the 
normal full-time academic workload, 
as described in section 428(b)(7) of 
the Higher Education Act of 1965 (20 
U.S.C. 1078(b)(7)); 
‘‘(II) in the case of a Federal 
student loan made under part E of 
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pamtmann on DSKBC07HB2PROD with BILLS
the Higher Education Act of 1965, 
the 9-month period after the date on 
which a student ceases to carry at 
least one-half the normal full-time 
academic workload, as described in 
section 464(c)(1)(A) of the Higher 
Education Act of 1965 (20 U.S.C. 
1087dd(c)(1)(A)); and 
‘‘(III) in the case of a Federal 
student 
loan 
defined 
in 
section 
3502(a)(2)(C), the 1-year period de-
scribed in section 722(c) of the Public 
Health 
Service 
Act 
(42 
U.S.C. 
292r(c)) or the 9-month period de-
scribed in section 836(b)(2) of such 
Act (42 U.S.C. 297b(b)(2)), as appli-
cable. 
‘‘(iii) 
REPAYMENT
PERIOD.—The 
term ‘repayment period’ means— 
‘‘(I) in the case of a Federal stu-
dent loan made, insured, or guaran-
teed under part B or D of the Higher 
Education Act of 1965, the repayment 
period described in section 428(b)(7) 
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pamtmann on DSKBC07HB2PROD with BILLS
of the Higher Education Act of 1965 
(20 U.S.C. 1078(b)(7)); 
‘‘(II) in the case of a Federal 
student loan made under part E of 
the Higher Education Act of 1965, 
the repayment period described in sec-
tion 464(c)(4) of the Higher Edu-
cation Act of 1965 (20 U.S.C. 
1087dd(c)(4)); or 
‘‘(III) in the case of a Federal 
student 
loan 
defined 
in 
section 
3502(a)(2)(C), the repayment period 
described 
in 
section 
722(c) 
or 
836(b)(2) of the Public Health Serv-
ice 
Act 
(42 
U.S.C. 
292r(c), 
297b(b)(2)), as applicable. 
‘‘(2) INTEREST REFUND IN LIEU OF RETRO-
ACTIVE APPLICABILITY.—By not later than 60 days 
after the date of enactment of the COVID–19 Stu-
dent Loan Relief Extension Act, the Secretary or, as 
applicable, the Secretary of Health and Human 
Services, shall, for each Federal student loan defined 
in subparagraph (B) or (C) of section 3502(a)(2) for 
which interest was not paid by such Secretary pur-
suant to paragraph (1) during the period beginning 
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pamtmann on DSKBC07HB2PROD with BILLS
on March 13, 2020 and ending on such date of en-
actment— 
‘‘(A) determine the amount of interest due 
(or that would have been due in the absence of 
being voluntarily paid by the holder of such 
loan) on such loan during the period beginning 
March 13, 2020, and ending on such date of 
enactment; and 
‘‘(B) refund the amount of interest cal-
culated under subparagraph (A), by— 
‘‘(i) paying the holder of the loan the 
amount of the interest calculated under 
subparagraph (A), to be applied to the 
loan balance for the borrower of such loan; 
or 
‘‘(ii) if there is no outstanding balance 
or payment due on the loan as of the date 
on which the refund is to be provided, pro-
viding a payment in the amount of the in-
terest calculated under subparagraph (A) 
directly to the borrower. 
‘‘(3) SUSPENSION
OF
INTEREST
CAPITALIZA-
TION.— 
‘‘(A) IN GENERAL.—With respect to any 
Federal student loan, interest that accrued but 
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pamtmann on DSKBC07HB2PROD with BILLS
(B) by amending subparagraph (B) to read 
as follows: 
‘‘(B) that— 
‘‘(i) a borrower of a Federal student 
loan made, insured, or guaranteed under 
part B or D of title IV of the Higher Edu-
cation Act of 1965 may be eligible to enroll 
in an income-contingent repayment plan 
under section 455(d)(1)(D) of the Higher 
Education 
Act 
of 
1965 
(20 
U.S.C. 
1087e(d)(1)(D)) or an income-based repay-
ment plan under section 493C of such Act 
(20 U.S.C. 1098e), including a brief de-
scription of such repayment plans; and 
‘‘(ii) in the case of a borrower of a 
Federal student loan defined in section 
3502(a)(2)(C) or made under part E of 
title IV of the Higher Education of 1965, 
the borrower may be eligible to enroll in 
such a repayment plan if the borrower con-
solidates such loan with a loan described in 
clause (i) of this subparagraph, and re-
ceives a Federal Direct Consolidation Loan 
under part D of the Higher Education of 
1965 (20 U.S.C. 1087a et seq.); and’’; and 
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pamtmann on DSKBC07HB2PROD with BILLS
(C) by adding at the end the following: 
‘‘(3) in a case in which the accrual of interest 
on Federal student loans is suspended under sub-
section (b)(1) beyond September 30, 2021, during 
the 2-month period beginning on the date on which 
the national U–5 measure of labor underutilization 
shows initial signs of recovery (as such terms are de-
fined in subsection (b)(1)(D)) carry out a program 
to provide not less than 6 notices by postal mail, 
telephone, or electronic communication to bor-
rowers— 
‘‘(A) indicating when the interest on Fed-
eral student loans of the borrower will resume 
accrual and capitalization; and 
‘‘(B) the information described in para-
graph (2)(B).’’. 
Æ 
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