I 
115TH CONGRESS 
1ST SESSION H. R. 3560 
To amend the Higher Education Act of 1965 to give borrowers an option 
to extend the grace period prior to the beginning of the repayment 
period, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 28, 2017 
Mr. AGUILAR introduced the following bill; which was referred to the 
Committee on Education and the Workforce 
A BILL 
To amend the Higher Education Act of 1965 to give bor-
rowers an option to extend the grace period prior to 
the beginning of the repayment period, and for other 
purposes. 
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 ‘‘Grace Period Allevi-
ation Act’’ or the ‘‘GPA Act’’. 
SEC. 2. GRACE PERIOD ADJUSTMENTS. 
Section 455 of the Higher Education Act of 1965 (20 
U.S.C. 1087e) is amended— 
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(1) in subsection (b), by adding at the end the 
following: 
‘‘(11) REPAYMENT
OF
INTEREST.—The Sec-
retary, through a loan modification process, shall 
pay to each borrower who received a Federal Direct 
Stafford Loan for which the first disbursement was 
made during the period between July 1, 2012, and 
July 1, 2014, an amount equal to the amount of in-
terest that accrued on such loan prior to the begin-
ning of the repayment period.’’; and 
(2) by adding at the end the following: 
‘‘(r) ELECTION OF EXTENDED GRACE PERIOD.— 
‘‘(1) IN GENERAL.—The Secretary shall provide 
an opportunity for each borrower who receives a 
Federal Direct Stafford Loan or Federal Direct Un-
subsidized Stafford Loan to elect a 12-month grace 
period before beginning repayment on the loan. The 
Secretary shall— 
‘‘(A) notify each such borrower of the op-
portunity for such an election not later than 45 
days before the start of the borrower’s repay-
ment period on the loan; 
‘‘(B) advise each such borrower of the fi-
nancial consequences of electing such 12-month 
grace period; and 
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‘‘(C) not require such a borrower to accept 
a 12-month grace period, unless the borrower 
specifically elects such 12-month grace period 
not later than 14 days before the start of the 
borrower’s repayment period on the loan. 
‘‘(2) APPLICATION
OF
SECTION 428(b)(7).— 
With respect to each borrower who makes an elec-
tion for a 12-month grace period under paragraph 
(1) of this subsection, section 428(b)(7) shall be ap-
plied— 
‘‘(A) in subparagraph (A), as if ‘or, in the 
case of a student who makes an election under 
section 455(r)(1), 12 months’ were inserted 
after ‘6 months’; and 
‘‘(B) in subparagraph (D), as if ‘or, in the 
case of a student who makes an election under 
section 455(r)(1), the 12-month period’ were in-
serted after ‘6-month period’.’’. 
Æ 
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