I 
112TH CONGRESS 
2D SESSION 
H. R. 4286 
To restore and extend the grace period before repayment begins on Federal 
Direct Stafford Loans and Federal Direct Unsubsidized Stafford Loans. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 28, 2012 
Ms. HAHN introduced the following bill; which was referred to the Committee 
on Education and the Workforce 
A BILL 
To restore and extend the grace period before repayment 
begins on Federal Direct Stafford Loans and Federal 
Direct Unsubsidized Stafford Loans. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Student Loan Grace 
Period Extension Act’’. 
SEC. 2. RESTORATION AND EXTENSION OF THE START OF 
THE REPAYMENT PERIOD FOR CERTAIN FED-
ERAL DIRECT LOANS. 
(a) RESTORATION OF INTEREST SUBSIDY DURING 
GRACE PERIOD.—Section 309(d) of title III of division F 
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of 
Public 
Law 
112–74 
(amending 
section 
428(a)(3)(A)(i)(I) of the Higher Education Act of 1965 
(20 U.S.C. 1078(a)(3)(A)(i)(I))) is repealed, and the pro-
visions of law amended by such section are restored or 
revived as if such section had not been enacted. 
(b) GRACE PERIOD EXTENSION.— 
(1) AMENDMENT.—Section 428(b)(7) of the 
Higher 
Education 
Act 
of 
1965 
(20 
U.S.C. 
1078(b)(7)) is amended— 
(A) in subparagraph (A), by striking ‘‘6 
months’’ and inserting ‘‘12 months’’; and 
(B) in subparagraph (D), by striking ‘‘6- 
month period’’ and inserting ‘‘12-month pe-
riod’’. 
(2) EFFECTIVE DATE AND APPLICATION.—The 
amendments made by paragraph (1) shall take effect 
on the date of enactment of this section, and shall 
apply with respect to— 
(A) Federal Direct Stafford Loans and 
Federal Direct Unsubsidized Stafford Loans 
made on or after such date of enactment; 
(B) Federal Direct Stafford Loans made 
before such date of enactment to borrowers who 
have not yet entered repayment on such loans 
on such date of enactment; and 
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(C) Federal Direct Unsubsidized Stafford 
Loans made before such date of enactment to 
borrowers who— 
(i) have not yet entered repayment on 
such loans on the date that is 60 days 
after such date of enactment; and 
(ii) elect a 12-month grace period in 
accordance with paragraph (3). 
(3) ELECTION OF EXTENDED GRACE PERIOD 
FOR CERTAIN FDUS LOANS.—The Secretary of Edu-
cation shall provide an opportunity for each bor-
rower who has a Federal Direct Unsubsidized Staf-
ford Loan that was made before the date of enact-
ment of this section and who has not yet entered re-
payment on such loan on the date that is 60 days 
after such date of enactment to elect a 12-month 
grace period, in accordance with section 428(b)(7) of 
the Higher Education Act of 1965, as amended by 
this subsection, before beginning repayment. The 
Secretary shall— 
(A) notify each such borrower of the op-
portunity for such an election not later than 30 
days after such date of enactment; 
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(B) advise each such borrower of the fi-
nancial consequences of electing such 12-month 
grace period; 
(C) not require such a borrower to accept 
a 12-month grace period in accordance with 
section 428(b)(7) of the Higher Education Act 
of 1965 (as amended by this subsection), unless 
the borrower specifically elects such 12-month 
grace period during the 90-day period begin-
ning on the day the Secretary notifies such bor-
rower of the option to elect such a 12-month 
grace period, except that a borrower shall make 
such an election no later than 10 days before 
the start of the borrower’s repayment period, as 
determined under section 428(b)(7) of the 
Higher Education Act of 1965 as in effect on 
the day before the date of enactment of this 
section; and 
(D) in the case of such a borrower who 
does not elect such a 12-month grace period 
during the period described in subparagraph 
(C), determine the start of the borrower’s re-
payment period in accordance with section 
428(b)(7) of the Higher Education Act of 1965 
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as in effect on the day before the date of enact-
ment of this section. 
Æ 
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