I 
116TH CONGRESS 
1ST SESSION H. R. 4590 
To amend the Higher Education Act of 1965 to terminate capitalization 
of interest after forbearance and certain deferment periods. 
IN THE HOUSE OF REPRESENTATIVES 
OCTOBER 1, 2019 
Mr. DANNY K. DAVIS of Illinois (for himself, Mr. CASTEN of Illinois, and Ms. 
SPANBERGER) introduced the following bill; which was referred to the 
Committee on Education and Labor 
A BILL 
To amend the Higher Education Act of 1965 to terminate 
capitalization of interest after forbearance and certain 
deferment periods. 
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 ‘‘End Capitalization for 
Struggling Borrowers Act’’. 
SEC. 2. TERMINATION OF CAPITALIZATION OF INTEREST 
AFTER DEFERMENT OR FORBEARANCE. 
(a) PART B AMENDMENTS.— 
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(1) SUBSIDIZED LOANS.—Section 428(c)(3)(C) 
of the Higher Education Act of 1965 (20 U.S.C. 
1078(c)(3)(C)) is amended— 
(A) in clause (iii), by inserting before the 
semicolon the following: ‘‘, and with respect to 
a forbearance granted to a borrower on or after 
the date of enactment of the End Capitalization 
for Struggling Borrowers Act on a loan made, 
insured or guaranteed under this section or on 
a Federal Direct Stafford Loan, provide infor-
mation to the borrower to assist the borrower 
in understanding that interest shall accrue on 
the loan but not be capitalized at the expiration 
of such period of forbearance’’; and 
(B) in clause (iv)— 
(i) in subclause (III), by inserting be-
fore the semicolon at the end the following: 
‘‘, except that this subclause shall not 
apply with respect to any period of for-
bearance beginning on or after the date of 
enactment of the End Capitalization for 
Struggling Borrowers Act’’; and 
(ii) in subclause (IV), by inserting be-
fore the semicolon at the end the following: 
‘‘except that this subclause shall not apply 
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with respect to any period of forbearance 
beginning on or after the date of enact-
ment of the End Capitalization for Strug-
gling Borrowers Act’’. 
(2) 
UNSUBSIDIZED
LOANS.—Section 
428H(e)(2)(A)(ii)(III) of the Higher Education Act 
of 1965 (20 U.S.C. 1078–8(e)(2)(A)(ii)(III)) is 
amended by inserting before the semicolon the fol-
lowing: ‘‘, except that with respect to a deferment 
during a period described in clauses (ii) through (iv) 
of section 427(a)(2)(C) or clauses (ii) through (v) of 
section 428(b)(1)(M), or any period of forbearance 
beginning on or after the date of enactment of the 
End Capitalization for Struggling Borrowers Act, on 
a loan made, insured, or guaranteed under this sec-
tion or on a Federal Direct Unsubsidized Stafford 
Loan, interest shall not be added to the principal 
amount of the loan at the expiration of such period’’. 
(b) PART D AMENDMENTS.—Subparagraph (B) of 
section 455(f)(1) of the Higher Education Act of 1965 
(20 U.S.C. 1087e(f)(1)) is amended to read as follows: 
‘‘(B) in the case of a Federal Direct PLUS 
Loan, a Federal Direct Unsubsidized Stafford 
Loan, or a Federal Direct Consolidation Loan 
not described in subparagraph (A)(ii)— 
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‘‘(i) for a deferment during a period 
described in paragraph (2)(A), shall accrue 
and be capitalized or paid by the borrower; 
and 
‘‘(ii) for a deferment during a period 
described in subparagraphs (B) through 
(D) of paragraph (2), shall accrue but not 
be capitalized.’’. 
Æ 
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