A bill to provide for cancellation of student loan indebtedness for spouses, surviving joint debtors, and parents of individuals who died or became permanently and totally disabled due to injuries suffered in the terrorist attack on September 11, 2001

SECTION 1. CANCELLATION OF STUDENT LOAN INDEBTEDNESS FOR SPOUSES, 
              SURVIVING JOINT DEBTORS, AND PARENTS.

    (a) Definitions.--For purposes of this section:
            (1) Eligible public servant.--The term ``eligible public 
        servant'' means an individual who--
                    (A) served as a police officer, firefighter, other 
                safety or rescue personnel, or as a member of the Armed 
                Forces; and
                    (B) died (or dies) or became (or becomes) 
                permanently and totally disabled due to injuries 
                suffered in the terrorist attack on September 11, 2001;
        as determined in accordance with regulations of the Secretary.
            (2) Eligible victim.--The term ``eligible victim'' means an 
        individual who died (or dies) or became (or becomes) 
        permanently and totally disabled due to injuries suffered in 
        the terrorist attack on September 11, 2001, as determined in 
        accordance with regulations of the Secretary.
            (3) Eligible spouse.--The term ``eligible spouse'' means 
        the spouse of an eligible public servant, as determined in 
        accordance with regulations of the Secretary.
            (4) Eligible surviving debtor.--The term ``eligible 
        surviving debtor'' means an individual who owes a Federal 
        student loan that is a consolidation loan that was used, 
        jointly by that individual and an eligible victim, to repay the 
        Federal student loans of that individual and of such eligible 
        victim.
            (5) Eligible parent.--The term ``eligible parent'' means 
        the parent of an eligible victim if--
                    (A) the parent owes a Federal student loan that is 
                a consolidation loan that was used to repay a PLUS loan 
                incurred on behalf of such eligible victim; or
                    (B) the parent owes a Federal student loan that is 
                a PLUS loan incurred on behalf of an eligible victim 
                who became (or becomes) permanently and totally 
                disabled due to injuries suffered in the terrorist 
                attack on September 11, 2001.
            (6) Secretary.--The term ``Secretary'' means the Secretary 
        of Education.
            (7) Federal student loan.--The term ``Federal student 
        loan'' means any loan made, insured, or guaranteed under part 
        B, D, or E of title IV of the Higher Education Act of 1965.
    (b) Relief From Indebtedness.--
            (1) In general.--The Secretary shall provide for the 
        discharge or cancellation of--
                    (A) the Federal student loan indebtedness of an 
                eligible spouse;
                    (B) the consolidation loan indebtedness of an 
                eligible surviving debtor;
                    (C) the portion of the consolidation loan 
                indebtedness of an eligible parent that was incurred on 
                behalf of an eligible victim, if the amount of such 
                indebtedness with respect to such eligible victim may 
                be reliably determined on the basis of records 
                available to the lender; and
                    (D) the PLUS loan indebtedness of an eligible 
                parent that was incurred on behalf of an eligible 
                victim described in subsection (a)(5)(B).
            (2) Method of discharge or cancellation.--A loan required 
        to be discharged or canceled under paragraph (1) shall be 
        discharged or canceled by the method used under section 437(a), 
        455(a)(1), or 464(c)(1)(F) of the Higher Education Act of 1965 
        (20 U.S.C. 1087(a), 1087e(a)(1), 1087dd(c)(1)(F)), whichever is 
        applicable to such loan.
    (c) Facilitation of Claims.--The Secretary shall--
            (1) establish procedures for the filing of applications for 
        discharge or cancellation under this section by regulations 
        that shall be prescribed and published within 90 days after the 
        date of enactment of this Act and without regard to the 
        requirements of section 553 of title 5, United States Code; and
            (2) take such actions as may be necessary to publicize the 
        availability of discharge or cancellation of Federal student 
        loan indebtedness for eligible spouses, eligible surviving 
        debtors, and eligible parents under this section.
    (d) Availability of Funds for Payments.--Funds available for the 
purposes of making payments to lenders in accordance with section 
437(a) for the discharge of indebtedness of deceased or disabled 
individuals shall be available for making payments under section 437(a) 
to lenders of loans to the eligible spouses, eligible surviving 
debtors, and eligible parents as required by this section.
    (e) Applicable to Outstanding Debt.--The provisions of this section 
shall be applied to discharge or cancel only Federal student loans 
(including consolidation loans) on which amounts were owed on September 
11, 2001.

Summary: Amends the Higher Education Act of 1965 to direct the Secretary of Education to discharge or cancel the Federal student loan indebtedness of spouses, surviving joint debtors, and parents of public servants and other individuals who died (or die) or who became (or become) permanently and totally disabled from injuries suffered in the terrorist attacks on September 11, 2001.