1338 
plan sponsor of the legacy plan shall rely on a 
written certification by the plan sponsor of the 
composite plan of the years of service the quali-
fied employee completed under the composite 
plan after the employee satisfies the require-
ments of subparagraph (B), disregarding any 
years of service that has been forfeited under 
the rules of the composite plan.’’. 
(2) REDUCTION OF BENEFITS.— 
(A) EMPLOYEE RETIREMENT INCOME SE-
CURITY ACT OF 1974.—Section 203(a)(3)(E)(ii) 
of the Employee Retirement Income Security 
Act of 1974 (29 U.S.C. 1053(a)(3)(E)(ii)) is 
amended— 
(i) in subclause (I) by striking 
‘‘4244A’’ and inserting ‘‘305(e), 803,’’; 
and 
(ii) in subclause (II) by striking 
‘‘4245’’ and inserting ‘‘305(e), 4245,’’. 
(B) INTERNAL REVENUE CODE OF 1986.— 
Section 411(a)(3)(F) of the Internal Revenue 
Code of 1986 is amended— 
(i) in clause (i) by striking ‘‘section 
418D or under section 4281 of the Em-
ployee Retirement Income Security Act of 
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1339 
1974’’ and inserting ‘‘section 432(e) or 
439 or under section 4281 of the Em-
ployee Retirement Income Security Act of 
1974’’; and 
(ii) in clause (ii) by inserting ‘‘or 
432(e)’’ after ‘‘section 418E’’. 
(3) ACCRUED BENEFIT REQUIREMENTS.— 
(A) EMPLOYEE RETIREMENT INCOME SE-
CURITY ACT OF 1974.—Section 204(b)(1)(B)(i) 
of the Employee Retirement Income Security 
Act of 1974 (29 U.S.C. 1054(b)(1)(B)(i)) is 
amended by inserting ‘‘, including an amend-
ment reducing or suspending benefits under 
section 305(e), 803, 4245 or 4281,’’ after ‘‘any 
amendment to the plan’’. 
(B) INTERNAL REVENUE CODE OF 1986.— 
Section 411(b)(1)(B)(i) of the Internal Revenue 
Code of 1986 is amended by inserting ‘‘, includ-
ing an amendment reducing or suspending ben-
efits under section 418E, 432(e) or 439, or 
under section 4281 of the Employee Retirement 
Income Security Act of 1974,’’ after ‘‘any 
amendment to the plan’’. 
(4) ADDITIONAL ACCRUED BENEFIT REQUIRE-
MENTS.— 
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1340 
(A) EMPLOYEE RETIREMENT INCOME SE-
CURITY ACT OF 1974.—Section 204(b)(1)(H)(v) 
of the Employee Retirement Income Security 
Act of 1974 (29 U.S.C. 1053(b)(1)(H)(v)) is 
amended by inserting before the period at the 
end the following: ‘‘, or benefits are reduced or 
suspended under section 305(e), 803, 4245, or 
4281’’. 
(B) INTERNAL REVENUE CODE OF 1986.— 
Section 411(b)(1)(H)(iv) of the Internal Rev-
enue Code of 1986 is amended— 
(i) in the heading by striking ‘‘BEN-
EFIT’’ and inserting ‘‘BENEFIT AND THE 
SUSPENSION AND REDUCTION OF CERTAIN 
BENEFITS’’; and 
(ii) in the text by inserting before the 
period at the end the following: ‘‘, or bene-
fits are reduced or suspended under sec-
tion 418E, 432(e), or 439, or under sec-
tion 4281 of the Employee Retirement In-
come Security Act of 1974’’. 
(5) ACCRUED BENEFIT NOT TO BE DECREASED 
BY AMENDMENT.— 
(A) EMPLOYEE RETIREMENT INCOME SE-
CURITY ACT OF 1974.—Section 204(g)(1) of the 
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1341 
Employee Retirement Income Security Act of 
1974 (29 U.S.C. 1053(g)(1)) is amended by in-
serting after ‘‘302(d)(2)’’ the following: ‘‘, 
305(e), 803, 4245,’’. 
(B) INTERNAL REVENUE CODE OF 1986.— 
Section 411(d)(6)(A) of the Internal Revenue 
Code of 1986 is amended by inserting after 
‘‘412(d)(2),’’ the following: ‘‘418E, 432(e), or 
439,’’. 
(g) CERTAIN FUNDING RULES NOT APPLICABLE.— 
(1) EMPLOYEE RETIREMENT INCOME SECURITY 
ACT OF 1974.—Section 305 of the Employee Retire-
ment Income Security Act of 1974 (29 U.S.C. 1085) 
is amended by adding at the end the following: 
‘‘(k) LEGACY PLANS.—Sections 302, 304, and 305 
shall not apply to an employer that has an obligation to 
contribute to a plan that is a legacy plan within the mean-
ing of section 805(a) solely because the employer has an 
obligation to contribute to a composite plan described in 
section 801 that is associated with that legacy plan.’’. 
(2) INTERNAL REVENUE CODE OF 1986.—Sec-
tion 432 of the Internal Revenue Code of 1986 is 
amended by adding at the end the following: 
‘‘(k) LEGACY PLANS.—Sections 412, 431, and 432 
shall not apply to an employer that has an obligation to 
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1342 
contribute to a plan that is a legacy plan within the mean-
ing of section 440A(a) solely because the employer has an 
obligation to contribute to a composite plan described in 
section 437 that is associated with that legacy plan.’’. 
(h) TERMINATION OF COMPOSITE PLAN.—Section 
403(d) of the Employee Retirement Income Security Act 
of 1974 (29 U.S.C. 1103(d) is amended— 
(1) in paragraph (1), by striking ‘‘regulations 
of the Secretary.’’ and inserting ‘‘regulations of the 
Secretary, or as provided in paragraph (3).’’; and 
(2) by adding at the end the following: 
‘‘(3) Section 4044(a) of this Act shall be ap-
plied in the case of the termination of a composite 
plan by— 
‘‘(A) limiting the benefits subject to para-
graph (3) thereof to benefits as defined in sec-
tion 802(b)(3)(B); and 
‘‘(B) including in the benefits subject to 
paragraph (4) all other benefits (if any) of indi-
viduals under the plan that would be guaran-
teed under section 4022A if the plan were sub-
ject to title IV.’’. 
(i) GOOD FAITH COMPLIANCE PRIOR
TO GUID-
ANCE.—Where the implementation of any provision of law 
added or amended by this division is subject to issuance 
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1343 
of regulations by the Secretary of Labor, the Secretary 
of the Treasury, or the Pension Benefit Guaranty Cor-
poration, a multiemployer plan shall not be treated as fail-
ing to meet the requirements of any such provision prior 
to the issuance of final regulations or other guidance to 
carry out such provision if such plan is operated in accord-
ance with a reasonable, good faith interpretation of such 
provision. 
SEC. 140006. EFFECTIVE DATE. 
Unless otherwise specified, the amendments made by 
this division shall apply to plan years beginning after the 
date of the enactment of this Act. 
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1345 
(6) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Education. 
Subtitle A—CARES Act Amendments 
APPLICATION OF WAIVER TO PARTICIPATING NONPROFIT 
EMPLOYERS 
SEC. 150102. 
(a) IN GENERAL.—Section 3503 of the CARES Act 
(Public Law 116–136) is amended— 
(1) by redesignating subsection (b) as sub-
section (c); and 
(2) by inserting after subsection (a) the fol-
lowing: 
‘‘(b) WAIVER OF NON-FEDERAL SHARE REQUIRE-
MENT
FOR NONPROFIT EMPLOYERS.—Notwithstanding 
any other provision of law, with respect to funds made 
available for award years 2019–2020 and 2020–2021, the 
Secretary shall waive any requirement that a nonprofit 
employer provide a non-Federal share to match Federal 
funds provided to such nonprofit employer under an agree-
ment under section 443 of the Higher Education Act of 
1965 (20 U.S.C. 1087–53).’’. 
(b) EFFECTIVE DATE.—The amendments made by 
subsection (a) shall take effect as if included in the enact-
ment of the CARES Act (Public Law 116–136). 
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1346 
EXTENSION OF FEDERAL WORK-STUDY DURING A 
QUALIFYING EMERGENCY 
SEC. 150103. 
(a) IN GENERAL.—Section 3505 of the CARES Act 
(Public Law 116–136) is amended— 
(1) in subsection (a)— 
(A) by striking ‘‘(not to exceed one aca-
demic year)’’; and 
(B) by striking ‘‘such academic year’’ and 
inserting ‘‘such period’’; and 
(2) in subsection (b)— 
(A) in paragraph (1), by inserting ‘‘first’’ 
before ‘‘occurred’’; and 
(B) in paragraph (3), by striking ‘‘for all 
or part of such academic year’’. 
(b) EFFECTIVE DATE.—The amendments made by 
subsection (a) shall take effect as if included in the enact-
ment of the CARES Act (Public Law 116–136). 
CONTINUING EDUCATION AT AFFECTED FOREIGN 
INSTITUTIONS 
SEC. 150104. 
(a) IN GENERAL.—Section 3510 of the CARES Act 
(Public Law 116–136) is amended— 
(1) in subsection (a), by striking ‘‘national 
emergency declared’’ and inserting ‘‘national emer-
gency related to the coronavirus declared’’; 
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1347 
(2) in subsection (b), by striking ‘‘qualifying 
emergency’’ and inserting ‘‘emergency or disaster af-
fecting the institution as described in subsection 
(a)’’; 
(3) in subsection (c), by striking ‘‘qualifying 
emergency’’ and inserting ‘‘applicable emergency or 
disaster as described in subsection (a)’’; and 
(4) in subsection (d)— 
(A) in paragraph (1)— 
(i) by striking ‘‘for the duration of a 
qualifying emergency and the following 
payment period,’’ and inserting ‘‘with re-
spect to a foreign institution, in the case of 
a public health emergency, major disaster 
or emergency, or national emergency re-
lated to the coronavirus declared by the 
applicable government authorities in the 
country in which the foreign institution is 
located, or in the case of a qualifying 
emergency,’’; and 
(ii) by inserting ‘‘, for the duration of 
the applicable emergency or disaster and 
the 
following 
payment 
period,’’ 
after 
‘‘1087a et seq.)’’; and 
(B) in paragraph (4)— 
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1348 
(i) by striking ‘‘qualifying emergency’’ 
and inserting ‘‘applicable emergency or dis-
aster’’; and 
(ii) by striking the period at the end 
and inserting ‘‘, the name of the institution 
of higher education located in the United 
States that has entered into a written ar-
rangement with such foreign institution, 
and information regarding the nature of 
such written arrangement, including which 
coursework or program requirements are 
accomplished at each respective institu-
tion.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
subsection (a) shall take effect as if included in the enact-
ment of the CARES Act (Public Law 116–136). 
FUNDING FOR HBCU CAPITAL FINANCING 
SEC. 150105. 
(a) IN GENERAL.—Section 3512(d) of the CARES 
Act (Public Law 116–136) is amended by striking 
‘‘$62,000,000’’ and inserting ‘‘such sums as may be nec-
essary’’. 
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall take effect as if included in the enact-
ment of the CARES Act (Public Law 116–136). 
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1349 
WAIVER AUTHORITY FOR INSTITUTIONAL AID 
SEC. 150106. 
(a) IN GENERAL.—Section 3517(a)(1)(D) of the 
CARES Act (Public Law 116–136) is amended by striking 
‘‘(b), (c), and (g)’’ and inserting ‘‘(b) and (c)’’. 
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall take effect as if included in the enact-
ment of the CARES Act (Public Law 116–136). 
SCOPE OF MODIFICATIONS TO REQUIRED AND 
ALLOWABLE USES 
SEC. 150107. 
(a) AMENDMENT TO INCLUDE MINORITY SCIENCE 
AND
ENGINEERING
IMPROVEMENT
PROGRAM.—Sub-
section (a) of section 3518 of the CARES Act (Public Law 
116–136) is amended— 
(1) by striking ‘‘part A or B of title III,’’ and 
inserting ‘‘part A, part B, or subpart 1 of part E 
of title III,’’; and 
(2) by inserting ‘‘1067 et seq.;’’ after ‘‘1060 et 
seq.;’’. 
(b) AMENDMENT TO CLARIFY SCOPE OF AUTHOR-
ITY.—Section 3518 of the CARES Act (Public Law 116– 
136) is amended by adding at the end the following new 
subsection: 
‘‘(d) SCOPE OF AUTHORITY.—Notwithstanding sub-
section (a), the Secretary may not modify the required or 
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1350 
allowable uses of funds for grants awarded under a statu-
tory provision cited in subsection (a) in a manner that 
deviates from the overall purpose of the grant program, 
as provided in the general authorization, findings, or pur-
pose of the grant program under the applicable statutory 
provision cited in such subsection.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall take effect as if included in the enact-
ment of the CARES Act (Public Law 116–136). 
Subtitle B—Financial Aid Access 
EMERGENCY FINANCIAL AID GRANTS EXCLUDED FROM 
NEED ANALYSIS 
SEC. 150108. 
(a) TREATMENT
OF EMERGENCY FINANCIAL AID 
GRANTS
FOR NEED ANALYSIS.—Notwithstanding any 
provision of the Higher Education Act of 1965 (20 U.S.C. 
1001 et seq.), emergency financial aid grants— 
(1) shall not be included as income or assets 
(including untaxed income and benefits under sec-
tion 480(b) of the Higher Education Act of 1965 
(20 U.S.C. 1807vv(b))) in the computation of ex-
pected family contribution for any program funded 
in whole or in part under the Higher Education Act 
of 1965 (20 U.S.C. 1001 et seq.); and 
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1351 
(2) shall not be treated as estimated financial 
assistance for the purposes of section 471 or section 
480(j) of the Higher Education Act of 1965 (20 
U.S.C. 1087kk; 1087vv(j)). 
(b) DEFINITION.—In this section, the term ‘‘emer-
gency financial aid grant’’ means— 
(1) an emergency financial aid grant awarded 
by an institution of higher education under section 
3504 of the CARES Act (Public Law 116–136); 
(2) an emergency financial aid grant from an 
institution of higher education made with funds 
made available under section 18004 of the CARES 
Act (Public Law 116–136); and 
(3) any other emergency financial aid grant to 
a student from a Federal agency, a State, an Indian 
tribe, an institution of higher education, or a schol-
arship-granting organization (including a tribal or-
ganization, as defined in section 4 of the Indian 
Self-Determination and Education Assistance Act 
(25 U.S.C. 5304)) for the purpose of providing fi-
nancial relief to students enrolled at institutions of 
higher education in response to a qualifying emer-
gency. 
FACILITATING ACCESS TO FINANCIAL AID FOR RECENTLY 
UNEMPLOYED STUDENTS 
SEC. 150109. 
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1352 
(a) TREATMENT AS DISLOCATED WORKER.— 
(1) IN
GENERAL.—Notwithstanding section 
479(d)(1) of the Higher Education Act of 1965 (20 
U.S.C. 1087ss(d)(1)), any individual who has ap-
plied for, or who is receiving, unemployment benefits 
at the time of the submission of a FAFSA for a cov-
ered award year shall be treated as a dislocated 
worker for purposes of the need analysis under part 
F of title IV such Act (20 U.S.C. 1087kk et seq.) 
applicable to such award year. 
(2) INFORMATION TO APPLICANTS AND INSTI-
TUTIONS.—The Secretary— 
(A) in consultation with institutions of 
higher education, shall carry out activities to in-
form applicants for Federal student financial 
aid under the Higher Education Act of 1965 
(20 U.S.C. 1001 et seq.)— 
(i) of the treatment of individuals who 
have applied for, or who are receiving, un-
employment benefits as dislocated workers 
under paragraph (1); and 
(ii) of the availability of means-tested 
Federal benefits for which such applicants 
may be eligible; 
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1353 
(B) shall carry out activities to inform in-
stitutions of higher education of the authority 
of such institutions, with explicit written con-
sent of an applicant for Federal student finan-
cial aid under the Higher Education Act of 
1965 (20 U.S.C. 1001 et seq.), to provide infor-
mation collected from such applicant’s FAFSA 
to an organization assisting the applicant in ap-
plying for and receiving Federal, State, local, or 
tribal assistance in accordance with section 312 
of the Department of Defense and Labor, 
Health and Human Services, and Education 
Appropriations Act, 2019 and Continuing Ap-
propriations Act, 2019 (Public Law 115–245); 
and 
(C) in consultation with the Secretary of 
Labor, shall carry out activities to inform appli-
cants for, and recipients of, unemployment ben-
efits of the availability of Federal student finan-
cial aid under the Higher Education Act of 
1965 (20 U.S.C. 1001 et seq.) and the treat-
ment of such applicants and recipients as dis-
located workers under paragraph (1). 
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1354 
(3) IMPLEMENTATION.—The Secretary shall 
implement this subsection not later than 30 days 
after the date of enactment of this Act. 
(4) APPLICABILITY.—Paragraph (1) shall apply 
with respect to a FAFSA submitted on or after the 
earlier of— 
(A) the date on which the Secretary imple-
ments this subsection under paragraph (3); or 
(B) the date that is 30 days after the date 
of enactment of this Act. 
(b) PROFESSIONAL JUDGMENT OF FINANCIAL AID 
ADMINISTRATORS.—The guidance of the Secretary titled 
‘‘Update on the use of ‘Professional Judgment’ by Finan-
cial Aid Administrators’’ (DCL ID: GEN–09–05), as in 
effect on May 8, 2009, shall apply— 
(1) to the exercise of professional judgement by 
financial aid administrators pursuant to section 
479A of the Higher Education Act of 1965 (20 
U.S.C. 1087tt) with respect to any FAFSA for a 
covered award year; and 
(2) to the selection of institutions for program 
reviews pursuant to section 498A of the Higher 
Education Act of 1965 (20 U.S.C. 1099c–1) for a 
covered award year. 
(c) DEFINITIONS.—In this section: 
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1355 
(1) COVERED AWARD YEAR.—The term ‘‘cov-
ered award year’’ means— 
(A) an award year during which there is a 
qualifying emergency; and 
(B) the first award year beginning after 
the end of such qualifying emergency. 
(2) MEANS-TESTED
FEDERAL
BENEFIT.—The 
term ‘‘means-tested Federal benefit’’ includes the 
following: 
(A) The supplemental security income pro-
gram under title XVI of the Social Security Act 
(42 U.S.C. 1381 et seq.). 
(B) The supplemental nutrition assistance 
program under the Food and Nutrition Act of 
2008 (7 U.S.C. 2011 et seq.). 
(C) The free and reduced price school 
lunch program established under the Richard 
B. Russell National School Lunch Act (42 
U.S.C. 1751 et seq.). 
(D) The program of block grants for 
States for temporary assistance for needy fami-
lies established under part A of title IV of the 
Social Security Act (42 U.S.C. 601 et seq.). 
(E) The special supplemental nutrition 
program for women, infants, and children es-
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1356 
tablished by section 17 of the Child Nutrition 
Act of 1966 (42 U.S.C. 1786). 
(F) The Medicaid program under title XIX 
of the Social Security Act (42 U.S.C. 1396 et 
seq.). 
(G) The tax credits provided under the fol-
lowing sections of the Internal Revenue Code of 
1986 (title 26, United States Code): 
(i) Section 25A (relating to American 
Opportunity and Lifetime Learning cred-
its). 
(ii) Section 32 (relating to earned in-
come). 
(iii) Section 36B (relating to refund-
able credit for coverage under a qualified 
health plan). 
(iv) Section 6428 (relating to 2020 re-
covery rebates for individuals). 
(H) Federal housing assistance programs, 
including tenant-based assistance under section 
8(o) of the United States Housing Act of 1937 
(42 U.S.C. 1437f(o)), and public housing, as 
defined in section 3(b)(1) of such Act (42 
U.S.C. 1437a(b)(1)). 
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1357 
(I) Such other Federal means-tested bene-
fits as may be identified by the Secretary. 
STUDENT ELIGIBILITY FOR HIGHER EDUCATION EMER-
GENCY
RELIEF
FUND
AND
OTHER
HIGHER
EDU-
CATION FUNDS 
SEC. 150110. 
(a) IN GENERAL.—With respect to student eligibility 
for receipt of funds provided under section 18004 of the 
CARES Act (Public Law 116–136) and under title VI of 
division A of this Act— 
(1) the Secretary is prohibited from imposing 
any restriction on, or defining, the populations of 
students who may receive such funds other than a 
restriction based solely on the student’s enrollment 
at the institution of higher education; and 
(2) section 401(a) the Personal Responsibility 
and Work Opportunity Reconciliation Act of 1996 (8 
U.S.C. 1611(a)) shall not apply. 
(b) EFFECTIVE DATE.—Subsection (a) shall take ef-
fect as if included in the enactment of the CARES Act 
(Public Law 116–136), and an institution of higher edu-
cation that provided funds to a student before the date 
of enactment of this Act shall not be penalized if such 
provision is consistent with such subsection and section 
18004 of the CARES Act (Public Law 116–136). 
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1358 
DEFINITION OF DISTANCE EDUCATION 
SEC. 150111. 
(a) IN GENERAL.—Except as otherwise provided in 
title IV of the Higher Education Act of 1965 (20 U.S.C. 
1070 et seq.), for purposes of such title, the term ‘‘dis-
tance education’’ means education that uses technology— 
(1) to deliver instruction to students enrolled at 
an institution of higher education who are separated 
from the instructor or instructors; and 
(2) to support regular and substantive inter-
action between the students and the instructor or in-
structors, either synchronously or asynchronously. 
(b) TECHNOLOGY.—For purposes of subsection (a), 
the technologies that may be used to offer distance edu-
cation include— 
(1) the internet; 
(2) one-way and two-way transmissions through 
open broadcast, closed circuit, cable, microwave, 
broadband lines, fiber optics, satellite, or wireless 
communications devices; 
(3) audio conferencing; and 
(4) other media used in a course in conjunction 
with any of the technologies listed in paragraphs (1) 
through (3). 
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(c) INSTRUCTOR.—For purposes of subsection (a), an 
instructor is an individual responsible for delivering course 
content and who meets the qualifications for instruction 
established by the institution of higher education’s accred-
iting agency. 
(d) SUBSTANTIVE INTERACTION.—For purposes of 
subsection (a), substantive interaction is engaging stu-
dents in teaching, learning, and assessment, consistent 
with the content under discussion, and also includes at 
least two of the following: 
(1) Providing direct instruction. 
(2) Assessing or providing feedback on a stu-
dent’s coursework. 
(3) Providing information or responding to 
questions about the content of a course or com-
petency. 
(4) Facilitating a group discussion regarding 
the content of a course or competency. 
(5) Other instructional activities approved by 
the institution of higher education’s or program’s ac-
crediting agency. 
(e) REGULAR INTERACTION.—For purposes of sub-
section (a), an institution ensures regular interaction be-
tween a student and an instructor or instructors by, prior 
to the student’s completion of a course or competency— 
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(1) providing the opportunity for substantive 
interactions with the student on a predictable and 
regular basis commensurate with the length of time 
and the amount of content in the course or com-
petency; and 
(2) monitoring the student’s academic engage-
ment and success and ensuring that an instructor is 
responsible for promptly and proactively engaging in 
substantive interaction with the student when need-
ed, on the basis of such monitoring, or upon request 
by the student. 
(f) EFFECTIVE DATE.—This section shall be effective 
for any semester (or the equivalent) that begins on or after 
August 15, 2020, and shall cease to be effective at the 
end of the 2020–2021 award year. 
INSTITUTIONAL STABILIZATION PROGRAM 
SEC. 150112. 
(a) AUTHORITY TO PARTICIPATE.—Notwithstanding 
paragraph (1) or (2) of section 498(c) of the Higher Edu-
cation Act of 1965 (20 U.S.C. 1099c(c)), an eligible insti-
tution described in subsection (b) may, in lieu of submit-
ting a letter of credit in accordance with section 
498(c)(3)(A) of such Act, submit an application under 
subsection (c)(1) to enter into a COVID–19 provisional 
program participation agreement in accordance with sub-
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section (d) to provide the Secretary with satisfactory evi-
dence of its financial responsibility. 
(b) ELIGIBLE INSTITUTION DESCRIBED.—An eligible 
institution described in this subsection is a private non-
profit institution of higher education that— 
(1) either— 
(A) has a composite score of less than 1.0 
for the institutional fiscal year ending in 2019, 
as determined under section 668.171(b)(1) of 
title 34, Code of Federal Regulations; or 
(B) on the date of an application under 
subsection (c)(1), has (or anticipates having) a 
composite score of less than 1.0 for the institu-
tional fiscal year ending in 2020, as determined 
under section 668.171(b)(1) of title 34, Code of 
Federal Regulations; 
(2) during award year 2018–2019— 
(A) offered on-campus classes; and 
(B) qualified for participation in a pro-
gram under title IV of the Higher Education 
Act of 1965 (20 U.S.C. 1070 et seq.); and 
(3) on the date of the application under sub-
section (c)(1), has a liquidity level of less than or 
equal to 180 days. 
(c) APPLICATION.— 
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(1) IN GENERAL.—An eligible institution desir-
ing to enter into a COVID–19 provisional program 
participation agreement under subsection (d), shall, 
not later than December 31, 2020, submit to the 
Secretary an application that includes— 
(A) the estimated liquidity level of the eli-
gible institution on the date of the application 
and an assurance that such liquidity level will 
be attested to in accordance with paragraph 
(2); 
(B) an assurance that such eligible institu-
tion will submit a record-management plan in 
accordance with paragraph (3); and 
(C) an assurance that such eligible institu-
tion will submit a teach-out plan in accordance 
with paragraph (4); and 
(D) an assurance that such eligible institu-
tion will submit reports on teach-out agree-
ments and sufficient progress made on such 
agreements in accordance with subsection 
(d)(3), as applicable. 
(2) AUDITOR ATTESTATION.—Not later than 60 
days after submitting an application under para-
graph (1), an eligible institution shall submit to the 
Secretary an auditor attestation of the liquidity level 
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of such eligible institution on the date such institu-
tion submitted such application pursuant to an audit 
conducted by a qualified independent organization or 
person in accordance with standards established by 
the American Institute of Certified Public Account-
ants. 
(3) RECORD-MANAGEMENT PLAN.— 
(A) IN GENERAL.—Not later than 60 days 
after submitting an application under para-
graph (1), an eligible institution shall submit to 
the Secretary a record-management plan ap-
proved by the accrediting agency of such eligi-
ble institution that includes— 
(i) a plan for the custody, including 
by the State authorizing agency, and the 
disposition of— 
(I) a teach-out plan and teach- 
out agreement records, as applicable; 
and 
(II) student records, including 
student transcripts, billing, and finan-
cial aid records; 
(ii) an estimate of the costs necessary 
to carry out such record-management plan; 
and 
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(A) that the institution has submitted an 
application under paragraph (1) to the Sec-
retary not later than 10 days after submitting 
such application; and 
(B) of the final acceptance or denial of 
such application not later than 5 days after re-
ceiving a final decision from the Secretary. 
(7) APPLICATION
DECISION.—The Secretary 
shall accept or deny an application under paragraph 
(1) not later than 10 days after the date on which 
an eligible institution completes all of the submission 
requirements under paragraphs (2), (3), and (4). 
(d) COVID–19 PROVISIONAL PROGRAM PARTICIPA-
TION AGREEMENT.— 
(1) AUTHORITY TO ENTER AGREEMENT.—The 
Secretary may enter into a COVID–19 provisional 
program participation agreement under this sub-
section with an eligible institution that submits an 
application under subsection (c)(1) on or before De-
cember 31, 2020, only if the Secretary has re-
ceived— 
(A) an auditor attestation under subsection 
(c)(2) that such eligible institution has a liquid-
ity level of less than or equal to 180 days on 
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the date of the application of such eligible insti-
tution under subsection (c)(1); 
(B) a record-management plan with re-
spect to such eligible institution in accordance 
with subsection (c)(3); and 
(C) a teach-out plan with respect to such 
eligible institution in accordance with sub-
section (c)(4). 
(2) PARTICIPATION REQUIREMENTS.—In enter-
ing into a COVID–19 provisional program participa-
tion agreement with an eligible institution under this 
subsection, the Secretary shall require such eligible 
institution— 
(A) if such eligible institution has a liquid-
ity level of less than or equal to 90 days on the 
date of the application of such eligible institu-
tion under subsection (c)(1), to submit a teach- 
out agreement (or teach-out agreements, as ap-
plicable) to the Secretary and to the accrediting 
agency and State authorizing agency of the in-
stitution in accordance with paragraph (3); 
(B) to report to the Secretary in accord-
ance with paragraph (4); 
(C) to meet the administrative capacity re-
quirements under section 498(d) of the Higher 
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Education Act of 1965 (20 U.S.C. 1099c(d)); 
and 
(D) to meet the cash reserves requirements 
under section 498(c)(6)(A) of the Higher Edu-
cation Act of 1965 (20 U.S.C. 1099c(c)(6)(A)). 
(3) TEACH-OUT AGREEMENTS.— 
(A) SUFFICIENT
PROGRESS.—Not later 
than 30 days after the date on which an eligible 
institution described in paragraph (2)(A) enters 
into a COVID–19 provisional program partici-
pation agreement under this subsection, such 
eligible institution shall submit to the Secretary 
an interim teach-out agreement that provides 
for the equitable treatment of at least 75 per-
cent of enrolled students and a reasonable op-
portunity for such students to complete their 
program of study. 
(B) ADDENDUM REPORTS.—Not later than 
15 days after the date on which an eligible in-
stitution submits an interim teach-out agree-
ment in accordance with subparagraph (A), and 
every 15 days thereafter, such eligible institu-
tion shall submit to the Secretary a report that 
includes— 
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(i) the percentage of students enrolled 
in such eligible institution that are covered 
by a teach-out agreement; 
(ii) the increase in the percentage of 
students covered by such an agreement, as 
compared to the most recently submitted 
report; and 
(iii) such other information as the 
Secretary or accrediting agency of the eli-
gible institution may require, including the 
progress of such eligible institution in 
meeting any benchmarks set by such ac-
crediting agency related to the percentage 
of students that should be covered by such 
an agreement. 
(C) TEACH-OUT AGREEMENT REQUIRED.— 
On the date agreed to by the eligible institution, 
the accrediting agency of such eligible institu-
tion, and the Secretary under a COVID–19 
provisional program participation agreement 
under this subsection, such eligible institution 
shall submit to the Secretary and to the accred-
iting agency and State authorizing agency of 
the institution a teach-out agreement (or agree-
ments, as applicable) that— 
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(i) provides for the equitable treat-
ment of all enrolled students and a reason-
able opportunity for such students to com-
plete their program of study; 
(ii) includes— 
(I) a list of all students enrolled 
in such eligible institution on the date 
such eligible institution submitted an 
application under subsection (c)(1) 
(and students withdrawn from such 
eligible institution in the 120 days 
prior to such date), including the 
name, contact information, program 
of study, program requirements com-
pleted, and estimated date of program 
completion of each such student; 
(II) the amount of any unearned 
tuition, account balances, student 
fees, and refunds due to each such 
student; 
(III) a plan to notify each such 
student, in the case of the closure of 
such eligible institution, of— 
(aa) the process for obtain-
ing a closed school discharge 
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1371 
under section 437(c)(1) of the 
Higher Education Act of 1965 
(20 U.S.C. 1087(c)(1)), using 
standard language developed by 
the Secretary under subsection 
(f), and the benefits and con-
sequences of such discharge; 
(bb) if applicable, informa-
tion on institutional and State 
refund policies; 
(cc) the teach-out institution 
or institutions available to enroll 
such student; 
(dd) the tuition and fees of 
the educational program offered 
by each such teach-out institution 
and the number and types of 
credit each such teach-out insti-
tution will accept prior to the en-
rollment of such student; and 
(ee) the record-management 
plan submitted in accordance 
with subsection (c)(3). 
(D) DECREASE IN LIQUIDITY.—In the case 
of an eligible institution that enters into a 
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1372 
COVID–19 provisional program participation 
agreement under this subsection and has a li-
quidity level of greater than 90 days on the 
date of the application of such eligible institu-
tion under subsection (c)(1), if the Secretary 
determines such eligible institution has declined 
such that the liquidity level of such eligible in-
stitution is consistently less than or equal to 90 
days, the Secretary may require such eligible in-
stitution to submit a teach-out agreement (or 
agreements, as applicable) to the Secretary in 
accordance with subparagraph (C). 
(4) REPORTING REQUIREMENTS.— 
(A) ELIGIBLE INSTITUTIONS WITH A LI-
QUIDITY LEVEL OF LESS THAN OR EQUAL TO 90 
DAYS.—In the case of an eligible institution de-
scribed in paragraph (2)(A), the Secretary shall 
require such eligible institution to report to the 
Secretary the liquidity level and total student 
enrollment of such eligible institution not less 
than once every 15 days, until such eligible in-
stitution closes or no longer participates in a 
COVID–19 provisional program participation 
agreement under this subsection. 
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1373 
(B) ELIGIBLE INSTITUTIONS WITH A LI-
QUIDITY LEVEL OF GREATER THAN 90 DAYS.— 
In the case of an eligible institution that enters 
into a COVID–19 provisional program partici-
pation agreement under this subsection and has 
a liquidity level of greater than 90 days on the 
date of the application of such eligible institu-
tion under subsection (c)(1), the Secretary shall 
require such eligible institution to report to the 
Secretary the liquidity level and total student 
enrollment of such eligible institution not less 
than once every 30 days, until such eligible in-
stitution closes or no longer participates in a 
COVID–19 provisional program participation 
agreement under this subsection. 
(C) ALL ELIGIBLE INSTITUTIONS.—All eli-
gible institutions that enter into a COVID–19 
provisional program participation agreement 
under this subsection shall comply with the re-
porting requirements under paragraph (2) of 
section 668.175(d) of title 34, Code of Federal 
Regulations (as such paragraph is in effect on 
the date of enactment of this section). 
(5) LETTER OF CREDIT DURING AGREEMENT.— 
The Secretary may not require an eligible institution 
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1374 
that enters into a COVID–19 provisional program 
participation agreement under this subsection to 
submit a new letter of credit or increase the value 
of an existing letter of credit for the duration of the 
agreement. 
(6) DURATION OF AGREEMENT.—A COVID–19 
provisional program participation agreement under 
this subsection may only be entered into for a period 
less than or equal to the period— 
(A) beginning on the first date of the 
agreement; and 
(B) ending on the last day of the first full 
award year that begins after the date described 
in subparagraph (A). 
(7) RENEWAL.— 
(A) IN
GENERAL.—A COVID–19 provi-
sional program participation agreement under 
this subsection may be renewed for 1 award 
year subsequent to the award year described in 
paragraph (6)(B), and shall expire no later 
than June 30, 2022. 
(B) AUTHORITY TO EXTEND RENEWAL PE-
RIOD.—Notwithstanding subparagraph (A), if 
the Secretary determines that an extension of 
renewal authority is in the best interest of the 
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eligible institutions with a COVID–19 provi-
sional program participation agreement under 
this subsection, the Secretary may permit 
COVID–19 provisional program participation 
agreement under this subsection to be renewed, 
on an annual basis, for not more than 3 total 
consecutive award years subsequent to the 
award year described in paragraph (6)(B), pro-
vided that no agreement under this subsection 
shall expire later than June 30, 2024. 
(C) RECALCULATION
OF
LIQUIDITY.—An 
eligible institution desiring to renew a COVID– 
19 provisional program participation agreement 
shall— 
(i) submit to the Secretary the liquid-
ity level of the institution on the last day 
of the most recent fiscal year of the eligible 
institution, to be used for purposes of such 
an agreement; and 
(ii) not later than 60 days after sub-
mitting such liquidity level under clause 
(i), have such liquidity level attested to in 
accordance with subsection (c)(2). 
(8) DISCONTINUATION
OF
AGREEMENT.—The 
participation of an eligible institution in a COVID– 
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19 provisional program participation agreement 
under this subsection— 
(A) may be discontinued at any time at the 
request of the eligible institution; 
(B) shall be discontinued by the Secretary 
if such eligible institution receives a composite 
score of 1.0 or greater for the most recent insti-
tutional fiscal year, as determined under section 
668.171(b)(1) of title 34, Code of Federal Reg-
ulations; and 
(C) shall have no affect on the eligibility of 
the institution to participate in a program par-
ticipation agreement under section 487(a) of 
the Higher Education Act of 1965 (20 U.S.C. 
1094) after the COVID–19 provisional program 
participation agreement under this subsection 
has expired or been discontinued. 
(9) 
GRANTS
TO
PARTICIPATING
INSTITU-
TIONS.—From the amounts authorized to be avail-
able, subject to appropriation, under subsection (j), 
the Secretary may award a grant to an eligible insti-
tution that enters into a COVID–19 provisional pro-
gram participation agreement under this subsection 
to carry out the requirements of such agreement and 
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provide for the increased economic stability of such 
eligible institution. 
(10) REGULATORY
AUTHORITY.—Except as 
otherwise provided in this subsection, the Secretary 
shall have the same authority with respect to a 
COVID–19 provisional program participation agree-
ment under this subsection as the Secretary has 
with respect to a program participation agreement 
under subparagraphs (B), (F), and (G) of section 
487(c)(1) (20 U.S.C. 1099(c)(1)). 
(e) PARTICIPATION IN TITLE IV PROGRAM.—An eli-
gible institution that enters into a COVID–19 provisional 
program participation agreement under subsection (d) 
may participate in programs under title IV of the Higher 
Education Act of 1965 (20 U.S.C. 1070 et seq.) only if 
such eligible institution submits to the Secretary (and the 
accrediting agency of such eligible institution, as applica-
ble) the agreements and reports applicable to such eligible 
institution under paragraphs (3) and (4) of subsection (d). 
(f) STANDARD LANGUAGE.—Not later than 30 days 
after the date of the enactment of this section, the Sec-
retary shall publish standard language relating to closed 
school 
discharges 
for 
purposes 
of 
subsection 
(d)(3)(C)(ii)(III)(aa). 
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(g) REPORTS TO CONGRESS.—Not later than 90 days 
after the date of the enactment of this section and every 
90 days thereafter until the date on which every COVID– 
19 provisional program participation agreement under this 
subsection has expired or been terminated, or until June 
30, 2024, whichever is earlier, the Secretary shall submit 
to the authorizing committees a report that includes a 
summary of each COVID–19 provisional program partici-
pation agreement entered into or renewed in the preceding 
90 days by the Secretary under this section, including the 
name, total student enrollment, and liquidity level of the 
institution. 
(h) AUTOMATIC CLOSED SCHOOL DISCHARGE.— 
(1) AUTOMATIC DISCHARGE REQUIRED.—With 
respect to a borrower described in paragraph (2), 
the Secretary shall, without any further action by 
the borrower, discharge the liability of the borrower 
with respect to each of the borrower’s loans (includ-
ing the interest and collection fees) described in 
paragraph (2)(A) in accordance with this subsection. 
(2) BORROWER
REQUIREMENTS.—A borrower 
described in this subparagraph is a borrower who— 
(A) was enrolled for a period of enrollment 
at an eligible institution that was participating 
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1379 
in a COVID–19 provisional program participa-
tion agreement under subsection (d), and— 
(i) was unable to complete such period 
of enrollment due to the closure of the in-
stitution; or 
(ii) withdrew from the eligible institu-
tion— 
(I) not more than 120 days be-
fore the closure of the eligible institu-
tion; or 
(II) if the Secretary determines 
an extension of the 120-day period de-
scribed in subclause (I) is necessary 
due to exceptional circumstances re-
lated to the closure of the institution, 
during the extended period deter-
mined by the Secretary; 
(B) has one or more loans— 
(i) made under title IV of the Higher 
Education Act of 1965 (20 U.S.C. 1070 et 
seq.) for a program of study at the eligible 
institution described in subparagraph (A); 
and 
(ii) that have not been discharged by 
the 
Secretary 
pursuant 
to 
section 
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1380 
437(c)(1) or section 464(g)(1) of the High-
er Education Act of 1965 (20 U.S.C. 
1087(c)(1); 1087dd(g)(1)); and 
(C) during the 3-year period beginning on 
the date of the closure of the eligible institution 
described in subparagraph (A), has not enrolled 
in any institution of higher education that par-
ticipates in a program under title IV of the 
Higher Education Act of 1965 (20 U.S.C. 1070 
et seq.). 
(3) REPORT.—Beginning on the date that is 3 
years after the date of enactment of this Act and 
every 180 days thereafter, the Secretary shall report 
to the authorizing committees the number of loans 
discharged in accordance with this subsection, and 
any amounts recovered by the Secretary in accord-
ance with the authority of the Secretary to pursue 
claims under section 437(c)(1) or section 464(g)(1) 
of the Higher Education Act of 1965 (20 U.S.C. 
1087(c)(1); 1087dd(g)(1)). 
(i) DEFINITIONS.—In this section: 
(1) LIQUIDITY
LEVEL.—The term ‘‘liquidity 
level’’ means, with respect to an eligible institution, 
the number of days such eligible institution can op-
erate based on available resources, as determined in 
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1381 
accordance with the Financial Accounting Standards 
Board update entitled ‘‘No. 2016–14 Not-for-Profit 
Entities (Topic 958)’’ and dated August, 2016. 
(2) 
TEACH-OUT
AGREEMENT.—The 
term 
‘‘teach-out agreement’’ means a written agreement 
between an eligible institution and one or more 
teach-out institutions that is in accordance with the 
requirements in section 496(c)(6) of the Higher 
Education Act of 1965 (20 U.S.C. 1099b(c)(6)) and 
that provides for the equitable treatment of students 
and a reasonable opportunity for students to com-
plete their program of study if such eligible institu-
tion, or an institutional location that provides 100 
percent of at least one program offered by such eli-
gible institution, ceases to operate or plans to cease 
operations before all such enrolled students have 
completed their program of study. 
(3) 
TEACH-OUT
INSTITUTION.—The 
term 
‘‘teach-out institution’’ means an institution of high-
er education that— 
(A) is not subject to a COVID–19 provi-
sional program participation agreement under 
this section; 
(B) shows no evidence of significant prob-
lems (including financial responsibility or ad-
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1382 
ministrative capability) that affect, as deter-
mined by the Secretary, the institution’s ability 
to administer a program under title IV of the 
Higher Education Act of 1965 (20 U.S.C. 1070 
et seq.); 
(C) is not required to pay any material 
debt, as determined by the Secretary, or incur 
any material liability, as determined by the Sec-
retary, arising from a judgment in a judicial 
proceeding, an administrative proceeding or de-
termination, or settlement; 
(D) is not involved in a lawsuit by a Fed-
eral or State authority for financial relief on 
claims related to the making of loans under 
part D of title IV of the Higher Education Act 
of 1965 (20 U.S.C. 1087a et seq.); 
(E) has the necessary experience, re-
sources, and capacity, including support serv-
ices, to enroll students and provide an edu-
cational program of acceptable quality that is 
reasonably similar in content and delivery, and 
to the extent practicable, scheduling, to that 
provided by the eligible institution that enters 
into an agreement with such teach-out institu-
tion; and 
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1383 
(F) during the five most recent award 
years, has not been subject to a denial, with-
drawal, suspension, or termination of accredita-
tion by an accrediting agency or association rec-
ognized by the Secretary. 
(4) TEACH-OUT
PLAN.—The term ‘‘teach-out 
plan’’ means a written plan developed by an eligible 
institution that provides for the equitable treatment 
of students if such eligible institution, or an institu-
tional location that provides 100 percent of at least 
one program offered by the eligible institution, 
ceases to operate or plans to cease operations before 
all enrolled students have completed their program 
of study. 
(j) AUTHORIZATION OF APPROPRIATIONS.—There is 
authorized to be appropriated $300,000,000 to carry out 
subsection (d)(9). 
Subtitle C—Federal Student Loan Relief 
PART A—TEMPORARY RELIEF FOR FEDERAL 
STUDENT BORROWERS UNDER THE CARES ACT 
EXPANDING LOAN RELIEF TO ALL FEDERAL STUDENT 
LOAN BORROWERS 
SEC. 150113. 
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Section 3502(a) of division A of the Coronavirus Aid, 
Relief, and Economic Security Act (Public Law 116–136) 
is amended— 
(1) by redesignating paragraphs (2) through 
(5) as paragraphs (3) through (6), respectively; and 
(2) by inserting after paragraph (1) the fol-
lowing: 
‘‘(2) FEDERAL
STUDENT
LOAN.—The term 
‘Federal student loan’ means a loan— 
‘‘(A) made under part D, part B, or part 
E of title IV of the Higher Education Act of 
1965 (20 U.S.C. 1070 et seq.), and held by the 
Department of Education; 
‘‘(B) made, insured, or guaranteed under 
part B of such title, or made under part E of 
such title, and not held by the Department of 
Education; or 
‘‘(C) made under— 
‘‘(i) subpart II of part A of title VII 
of the Public Health Service Act (42 
U.S.C. 292q et seq.); or 
‘‘(ii) part E of title VIII of the Public 
Health Service Act (42 U.S.C. 297a et 
seq.).’’. 
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EXTENDING THE LENGTH OF BORROWER RELIEF DUE TO 
THE CORONAVIRUS EMERGENCY 
SEC. 150114. 
Section 3513 of division A of the Coronavirus Aid, 
Relief, and Economic Security Act (Public Law 116–136) 
is amended— 
(1) by amending subsection (a) to read as fol-
lows: 
‘‘(a) SUSPENSION OF PAYMENTS.— 
‘‘(1) IN GENERAL.—During the period begin-
ning on March 13, 2020, and ending on September 
30, 2021, the Secretary or, as applicable, the Sec-
retary of Health and Human Services, shall suspend 
all payments due on Federal student loans. 
‘‘(2) TRANSITION PERIOD.—For one additional 
30-day period beginning on the day after the last 
day of the suspension period described in subsection 
(a), the Secretary or, as applicable, the Secretary of 
Health and Human Services, shall ensure that any 
missed payments on a Federal student loan by a 
borrower during such additional 30-day period— 
‘‘(A) do not result in collection fees or pen-
alties associated with late payments; and 
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‘‘(B) are not reported to any consumer re-
porting agency or otherwise impact the bor-
rower’s credit history. 
‘‘(3) PAYMENT REFUND IN LIEU OF RETRO-
ACTIVE APPLICABILITY.— 
‘‘(A) IN GENERAL.—By not later than 60 
days after the date of enactment of the HE-
ROES Act, the Secretary or, as applicable, the 
Secretary of Health and Human Services, shall, 
for each Federal student loan defined in sub-
paragraph (B) or (C) of section 3502(a)(2)— 
‘‘(i) determine the amount of principal 
due on such loan (or that would have been 
due in the absence of being voluntarily 
paid by the holder of such loan) during the 
period beginning March 13, 2020, and 
ending on such date of enactment; and 
‘‘(ii) refund the amount of principal 
calculated under subparagraph (A), by— 
‘‘(I) paying the holder of the loan 
the amount of the principal calculated 
under subparagraph (A), to be applied 
to the loan balance for the borrower 
of such loan; or 
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‘‘(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, providing a payment 
in the amount of the principal cal-
culated under subparagraph (A) di-
rectly to the borrower. 
‘‘(B) PRINCIPAL.—In this paragraph, the 
term ‘principal’ includes any late charges or 
fees. 
‘‘(4) RECERTIFICATION.—A borrower who is re-
paying a Federal student loan pursuant to in an in-
come-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 re-
payment plan under section 493C of such Act (20 
U.S.C. 1098e) shall not be required to recertify the 
income or family size of the borrower under such 
plan prior to December 31, 2021.’’; 
(2) in subsection (c), by striking ‘‘part D or B 
of title IV of the Higher Education Act of 1965 (20 
U.S.C. 1087a et seq.; 1071 et seq.)’’ and inserting 
‘‘part B, D, or E of title IV of the Higher Education 
Act of 1965 (20 U.S.C. 1087a et seq.; 1071 et seq.; 
1087aa et seq.)’’; 
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(3) in subsection (d), by striking ‘‘During the 
period in which the Secretary suspends payments on 
a loan under subsection (a), the Secretary’’ and in-
serting ‘‘During the period in which payments on a 
Federal student loan are suspended under subsection 
(a), the Secretary or, as applicable, the Secretary of 
Health and Human Services’’; 
(4) in subsection (e), by striking ‘‘During the 
period in which the Secretary suspends payments on 
a loan under subsection (a), the Secretary’’ and in-
serting ‘‘During the period in which payments on a 
Federal student loan are suspended under subsection 
(a), the Secretary or, as applicable, the Secretary of 
Health and Human Services’’; and 
(5) in subsection (f), by striking ‘‘the Sec-
retary’’ and inserting ‘‘the Secretary or, as applica-
ble, the Secretary of Health and Human Services,’’.’’ 
NO INTEREST ACCRUAL 
SEC. 150115. 
Section 3513(b) of division A of the Coronavirus Aid, 
Relief, and Economic Security Act (Public Law 116–136) 
is amended to read as follows: 
‘‘(b) PROVIDING INTEREST RELIEF.— 
‘‘(1) NO ACCRUAL OF INTEREST.— 
‘‘(A) IN GENERAL.—During the period de-
scribed in subparagraph (D), interest on a Fed-
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eral student loan shall not accrue or shall be 
paid by the Secretary (or the Secretary of 
Health and Human Services) during— 
‘‘(i) the repayment period of such 
loan; 
‘‘(ii) any period excluded from the re-
payment period of such loan (including any 
period of deferment or forbearance); 
‘‘(iii) any period in which the bor-
rower of such loan is in a grace period; or 
‘‘(iv) any period in which the borrower 
of such loan is in default on such loan. 
‘‘(B) DIRECT LOANS AND DEPARTMENT OF 
EDUCATION
HELD
FFEL
AND
PERKINS 
LOANS.—For purposes of subparagraph (A), in-
terest shall not accrue on a Federal student 
loan described in section 3502(a)(2)(A). 
‘‘(C) FFEL AND
PERKINS
LOANS
NOT 
HELD
BY
THE
DEPARTMENT
OF
EDUCATION 
AND
HHS
LOANS.—For purposes of subpara-
graph (A)— 
‘‘(i) in the case of a Federal student 
loan defined in section 3502(a)(2)(B), the 
Secretary shall pay, on a monthly basis, 
the amount of interest due on the unpaid 
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principal of such loan to the holder of such 
loan, except that any payments made 
under this clause shall not affect payment 
calculations under section 438 of the High-
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 clause is the period begin-
ning on March 13, 2020, and ending on 
the later of— 
‘‘(I) September 30, 2021; or 
‘‘(II) the day following the date 
of enactment of the HEROES Act 
that is 2 months after the national U– 
5 measure of labor underutilization 
shows initial signs of recovery. 
‘‘(ii) DEFINITIONS.—In this subpara-
graph: 
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